Is There a Difference Between Health Insurance and Medical Insurance?

The pandemic years were a rough wake-up call for many people. Those who thought they were healthy and untouchable suddenly found themselves in the grip of the deadly virus. And for the first time in years, doctors and hospitals were not equipped to deal with the disease. The people who could afford to pay for the elevated medical care charges could survive. However, those who could not pay for these services faced the brunt of the situation.  Thus, as the matter started settling, people rushed to get Covid-19 insurance. However, before buying Covid-19 insurance, you need to know that the insurance comes as an add-on. You will need a health insurance policy or medical insurance first.

A medical insurance and health insurance policy are two separate terms frequently used indiscriminately. But there is a minor distinction between both. You may be one of the many people who think that the two are the same; however, in that case, you are wrong. But there is nothing to feel bad about.

Many people do not understand the difference between the two. As a result, health insurance and medical insurance are frequently confused with one another. We have added a few points to help you understand the difference between health insurance and medical insurance.

Health Insurance vs Medical Insurance

To get a better idea of what the two are, you should know the definition of the two. Once you know the definition, understanding the difference between them becomes easier.

What is a Health Insurance Policy?

Health insurance pays for all hospitalisation and pre- and post-hospitalisation costs, including ambulance fees and other connected charges. Therefore, it is possible to describe the best health insurance plans in India as comprehensive insurance.

What is Medical Insurance?

Medical insurance partially covers hospitalisation costs and treatment for pre-identified illnesses and accidents. Unlike health insurance, medical insurance does not include any extra coverage. It depends on the sum insured and is limited to 5 lakh rupees.

Now that we know what the two are, let us understand their major differences.

  • When comparing coverage between health insurance and mediclaim, health insurance seems to have the edge over medical insurance. People who wish to enjoy more thorough protection from medical costs should get health insurance. Those who feel they do not require much coverage and get enough medical insurance should buy that instead.
  • The type of plan one must select is determined by their medical needs. This, in turn, is influenced by various elements, including pre-existing diseases, lifestyle choices, and family medical history. If you have a more pressing need, you should always choose to buy health insurance for greater coverage.
  • Having any form of healthcare protection is useful in times of need, even though having health insurance is seen as being more comprehensive and thus providing greater coverage. Consequently, a medical policy would be more cost-effective than health insurance for people on a tighter budget.
  • The flexibility of health insurance is substantially greater. The range of insurance, the Sum insured (SI) amount, and the insurance term are all customisable by policyholders. There are no additional benefits covered by medical insurance. As opposed to this, health insurance gives optional supplemental coverages such as maternity and newborn, accidental, critical sickness, etc. It is available as either a standalone option or for riders.

Summing Up

The points covered above should tell you all you need to know about the difference between them, and you will be able to make a better choice when purchasing your policy. Of course, there are a few similarities between the two as well. For example, you can get tax benefits on purchasing both and buy medical and health insurance online. However, after seeing the points above, it becomes clearer why online health insurance would benefit you.

Salem Neil
the authorSalem Neil