What is Difference Between Mediclaim And Health Insurance

•  Health Cover: A mediclaim policy works on the basis of a pre-decided sum insured payable for the expenses incurred for hospitalization and disease-specific treatment.
•  Easy Claim Settlement: The claim under a mediclaim policy is paid in the form of cashless treatment and reimbursement.
•  Family Cover Available: You can buy a mediclaim policy to cover yourself or your family, including spouse, kids, and parents.
•  Tax Savings: You can reduce your tax liability when you buy a mediclaim policy. It is defined under Section 80D of the Income Tax Act.

•  Extensive Coverage: You can get comprehensive coverage under a health insurance policy, including critical illness coverage for a pre-defined set of critical illnesses or health conditions
•  Tax Benefits: These benefits are the same as that of a mediclaim policy. The premium you pay for buying a health insurance plan makes you eligible for tax deductions
•  Discount on Policy Renewal: With a health insurance policy, you can get a No Claim Bonus at the time of policy renewal, provided you have not filed any claim during the last policy tenure
•  Availability of Riders: You can extend the benefits of a health insurance plan by including riders/add-ons. The availability of these riders may vary from one insurer to the other

Also Read: What are Riders in Insurance?

As detailed in the table, there is a thin difference between mediclaim and health insurance that separates the two coverage types. This can be the reason behind the confusion that prevails around the difference between health and medical insurance.

Many people search for the best mediclaim policy in India because of peer recommendations or advice from financial planning experts. Some of them only look at getting health coverage as a formality to be fulfilled, while others invest in them only to avail tax benefits. Knowing about the difference between health and medical insurance helps make the right selection of a health plan.

There is no such ‘best mediclaim plan or health policy’ that is suitable for every individual, irrespective of the kind of lifestyle followed, current health condition, and affordability. Hence, it is advisable that you understand the key difference between mediclaim and health insurance before buying any of them.

By selecting an adequate sum insured based on your needs, you can prevent the financial burden of an ailment, mild or severe, to fall upon you. The chosen health insurance provider will take care of various expenses incurred for the treatment.

While selecting the sum insured, keep your current health status in mind. In case you are suffering from a critical illness that requires frequent medical checkups, choose a higher sum insured for complete protection. Specifically for cancer, you can buy cancer insurance plans designed to cover various stages of this disease.

Hence, it is wise to buy an affordable health plan in the start, which you can later extend for better coverage. This way, your health will be covered appropriately without causing any financial stress. You can extend the health insurance coverage as per various crucial events in life, like career growth and an increase in family size. If you previously had plans to buy a mediclaim policy, make sure you understand the difference between mediclaim and health insurance.

The process of online health insurance purchase is easy and hassle-free. You can use online calculators to get an estimate of the premium for a specific sum insured.