What is the difference between mediclaim and health insurance?
Vote: 1
Are you still confused between mediclaim and health insurance? People usually mix up these two most commonly used terms in the health industry. Mediclaim policies are less expensive because they offer limited coverage to individuals. On the other hand, health insurance can be a little expensive as it offers greater coverage and a larger sum insured. In addition, health insurance policies provide tax advantages and additional coverage.
Health Insurance vs. MediClaim - Know the Difference.
Let’s understand the difference between the two:
Features | Mediclaim | Health Insurance |
Coverage Scope | It is limited to hospitalisation expenses | It provides coverage for hospitalisation, along with additional benefits |
Flexibility | It is less flexible than health insurance | It is considered highly flexible due to add‑ons/riders. |
Sum Insured | Usually lower | Higher |
Additional Benefits | Very less | It offers many additional benefits, such as wellness programs, daycare treatments, and preventive care |
Best option for | Basic medical needs | Comprehensive health protection |
Premium | Lower premium | Premium can be higher |
Add-on Coverage | Add-on Coverage is not provided | Here, you can select from different add-on options. Some of them are critical illness, maternity coverage, etc. |
Critical Illness Cover | No coverage for critical illnesses. | kidney failure, stroke, cancer, etc., are some of the critical illnesses that are covered. |
Is Health Insurance Better or Mediclaim?
Both Health Insurance and Mediclaim are considered advantageous to the policyholders as they help save their hard-earned money by covering the cost of medical expenses. Therefore, health insurance is better than mediclaim because it offers:
- Higher Sum Insured
- Comprehensive coverage
- Tax benefits under Section 80D
- Greater flexibility
- Wide network of hospitals
- Additional benefits
Final Advice:
Some key factors you need to consider before buying either a mediclaim policy or a health insurance plan are:
- Check for the claim settlement ratio (CSR) of the health insurance company.
- Look, if you are offered a no-claim bonus.
- Verify and pick a health insurance plan that has the lowest waiting period.
- Be aware of the policy exclusions/ limitations.