HomeHealth InsuranceHealth Insurance or Medical Loan: Which to Choose?

Health Insurance or Medical Loan: Which to Choose?

As a result of increasing medical expenses, having health insurance has become the need of the hour. However, it is possible that your health insurance may not cover all kinds of treatments and diseases. Therefore, in such cases, availing of a medical loan can prove to be extremely handy. A medical loan is a form of unsecured personal loan.

Features of Medical Loan

Below are some of the key features of a medical loan.

Instant Availability.

During a medical emergency, you would require access to instant funds. A medical loan can be easily availed through a bank or other Non-Banking Financial Companies (NBFC) by following a simple online application process.

Short Term Flexible Repayments

The cost covered by health insurance is predefined. Therefore, during an emergency, you can take a medical loan if you feel that your health insurance coverage would not be sufficient to cover the total medical expense. Moreover, when you take a medical loan, you can repay it by choosing a tenure that suits your needs.

Access to Treatments at Non-Cashless Hospitals

Every health insurance provider has a list of network hospitals. Network hospitals are those hospitals where the insured can avail of cashless treatments. Therefore, it is always recommended to opt for an insurance provider that has a wide range of network hospitals. However, if your insurance provider has limited network hospitals, availing of cashless treatment might become difficult. These hassles can be eliminated when you take a medical loan. You can use a medical loan for payments at your preferred hospital.

Minimum Paperwork

In case of medical exigency, the last thing you want is to file paperwork in order to raise funds. With leading banks and Non-Banking Financial Companies, medical loans can be availed in minutes through a hassle-free process.

No Collateral

Since a medical loan is an unsecured loan, you are not required to keep any collateral with the loan provider.

Also Read: Hidden Health Insurance Benefits That No One Has Told You

A medical loan is an instant solution for a medical emergency. However, if you decide to take up a medical loan, you should look for a deal that offers you competitive interest rates and low processing charges. In addition to that, to have a clear picture of your repayment, you can calculate your EMIs using the EMI calculator for a personal loan.

Though the importance of having comprehensive health insurance should never be underestimated, there are certain added benefits that you can avail yourself of with the help of a medical loan. However, it is recommended that you should research and compare various loan providers before taking up a medical loan. Lastly, you must always read the terms and conditions carefully in order to avoid any inconvenience in the later stage.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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