We all want to stay healthy, young, and happy in an ideal world. However, the scenario is very different. Health problems might come up at any time, so you must be well prepared to witness them in the best way possible. Besides physical and emotional trauma, medical emergencies may be extremely expensive. There are various ways to manage your life savings without draining them out. NBFCs and best banks for personal loan for medical exigencies that may assist you in paying all your medical costs. The next approach is to buy medical insurance that covers your healthcare expenditures. Let’s discuss the 2 options in detail, the differences between both, and their respective advantages so that you can make an informed choice regarding your medical care.
Medical personal loan
The personal medical loan falls under the personal loan category, which can be simply obtained for different medical linked emergencies or immediate healthcare requirements linked to the operation, treatment, surgical process, or other medical linked ailments. It may be provided by NBFCs, banks like PNB personal loan, SBI, BOI and other lenders. Note for PNB personal loan interest rate for salary account may begin from 8.30 percent p.a.
Health insurance
Health insurance covers part or full risk of an individual bearing healthcare expenditures. Based on the terms and conditions, either the insured pays the cost, which is later reimbursed, or the company pays the medical provider directly.
What are the major distinctions?
A healthcare loan is availed as a personal loan after witnessing an unforeseen disease to cover up the expenditures, while health insurance is bought as a precautionary means in the situation of an accidental strike. A medical loan covers all the expenditures, namely prescription bills, hospitalization, surgery, and other treatments. You even can use the funds as per your requirement. Health insurance meets the expenses based on the insurance type and insurance amount. For instance, medical insurance may just cover hospitalization while leaving out serious diseases. Additionally, if you have been insured for Rs 5 lakh, you may be able to reimburse just that amount. Anything over that you should pay. A healthcare loan is a variant of a personal loan that should be repaid in the form of an EMI basis because it is convenient for you. Medical insurance, on the contrary, is the annual buy to assist lower the risk of exposure to medical expenses.
What’s the cost factor?
You just require availing of a healthcare loan when you require it. It is crucial to purchase medical insurance every year, irrespective of whether you are sick or healthy. It can be extremely expensive as approximately Rs 30,000 each year, which may not be easy for all to repay. A healthcare loan is provided to self-employed, salaried or pensioners. Medical insurance is provided to relatively healthy people. No one facing a major surgery such as a bypass may get medical insurance at the 12th hour. Note that here in this blog, health insurance is not being undermined.
Everyone should hold adequate medical insurance, and there must be zero compromises on this. However, there are a few instances where health cover might not be adequate to cover up all your expenditures for healthcare emergencies. In such cases, a personal loan can come across as an aid to cover up your cost, which may be over and above your medical cover.
Important benefits of healthcare loan –
∙ Easy approval and processing
∙ Just the basic documents are needed
∙ Covers up any expenses
∙ Security or collateral-free loan
∙ Can be easily repaid in simple instalments
∙ Can be availed by any earner
∙ Processed in short term
∙ Offers flexibility
∙ Can be availed for up to Rs 25 lakh or even more based on the lender
Benefits of health insurance
∙ Offers cashless hospitalization
∙ Covers big bills at minor costs
∙ Saves you from excessive financial stress
∙ Can be bought online easily
∙ Provides you with tax benefits
∙ Offer free annual basic medical check-ups
Advantages of availing of medical loan
Instant approval – The last thing you would want during a healthcare crisis is to be caught up in financial procedure that is taking a lot of time for the disbursement. Medical personal loans are approved instantly, and you do not require to worry about loan approval.
Covers up any ailment – Healthcare loans may be availed for any kind of ailment. From long-term healthcare treatment processes like dental surgery and chemotherapy, these loans are for any medical situation. You just need to evaluate and then apply for the loan as per your requirement.
Flexible repayment tenure – Healthcare bills may be extremely high and thus raise your budget. Healthcare loans permit you to select from flexible repayment tenure. Loan proceeds can be paid back in monthly instalments over a time – period. Usually, most banks provide a repayment tenure of as high as 5 years. Few lenders may also allow you to avail a tenure of as high as 6 to 7 years.
Zero collateral or security requirement – Unlike most of the other loan types, you do not require providing security or collateral for the medical loan. It means that you do not require generating any security against the offered loan. No collateral or security requirements rid you of the stress of collateral or security.
What is the difference between health insurance and a personal healthcare loan?
While medical loans and health insurance may be partially used or used in full to repay your healthcare bills, they are thoroughly different. In other words, healthcare insurance is bought as a precautionary instrument to cover your future medical expenditures. On the contrary, healthcare loans are available after medical exigency has occurred. In both such cases, you may pay the EMIs or the premiums on time, although the payment range is different. In medical insurance, you require paying a regular premium for you to continue availing the medical support or cover from the healthcare insurer. In the case of a personal medical loan, it is a debt that you require repaying back along with interest constituent after you receive the loan proceeds.
