Difference between health insurance and mediclaim

Here’s an example - let's say you want to buy a mobile phone. What would you do? You will either see the name of the company and model of the phone and buy it by paying the cost of it. Or you will enquire about all the features of that phone, compare it with other phones, find out about the warranty, read the phone reviews and see the ratings before making your decision. Most people adopt the second approach and then buy that phone. Now use this phone buying approach to buy health insurance for yourself. You will want to thoroughly understand what plan you are buying and what benefits you can get from it in the future.

(Read more: What does health insurance cover)

Even if you have taken the best selling product (insurance) from the best company, you must know what facilities you will get in the future, which features you will have to wait for and how long. Not knowing all the details would be a mistake. Many people often make similar mistakes when it comes to buying health insurance. Another mistake is assuming a mediclaim policy and health insurance to be the same.

Mediclaim insurance provides us with financial protection against health-related expenses. It is an inexpensive solution to deal with any health emergency you may face in the future. However, in a mediclaim policy, you only get cover for the expenses incurred during hospitalization. You will have to pay for any other expenses from your pocket.

(Read more: What is not covered in health insurance)

Health insurance provides you coverage related to medical and surgical expenses. You can either take the cashless facility in the network hospitals of the insurance company or you can get reimbursement from the company after settling the bill at other hospitals. Different companies give you benefits according to their terms and conditions. In this, large hospital expenses can also be claimed easily. All in-hospital expenses are covered with myUpchar Bima Plus. Apart from this, up to 30 days pre and 60 days post hospitalization expenses are also covered.

(Read more: The difference between health insurance and life insurance)

Mediclaim and health insurance are generally used interchangeably, though they are different. The biggest differences between the two are mentioned below:

• What coverage do you get: A mediclaim policy can be beneficial for you in case of hospitalization due to accident, pre-existing diseases (after the stipulated time) and other emergencies. On the other hand, health insurance covers hospital expenses as well as other expenses like pre-hospitalization, post-hospitalization, ambulance fees and more. It may also provide compensation for the loss of your income due to an accident.
• Addon coverage: No add-on coverage is available in the mediclaim policy. Several add-ons like critical illness coverage, maternity coverage, personal accident coverage and accidental disability coverage make health insurance a better option.
• Flexibility: Even in terms of flexibility, the mediclaim policy will leave you disappointed. On the other hand, you get a lot of flexibility in health insurance. If you want, you can reduce the premium of your health insurance plan after a certain period of time. You can also change the terms of your policy so that you can enjoy the benefits of the insurance for a longer period.
• Plan features: Different insurance companies provide different facilities to their customers under the mediclaim policy. In the case of health insurance, generally, the facilities offered by all the companies for the same sum insured are almost the same.
• Critical illness cover: Critical illness is not covered in a mediclaim policy. In health insurance, critical illness cover is available for more than 30 critical diseases like cancer, stroke, kidney failure, encephalitis, polio, Parkinson, Alzheimer's, multiple sclerosis etc).
• Sum insured: In a mediclaim policy, you get the sum insured only up to a maximum of 5 lakhs, that is, you cannot take a sum insured that exceeds this amount even if you want. Large health expenses due to rising inflation can be well managed through health insurance you can take sum-insured up to a maximum of Rs 6 crore in it.
• Claim: Under a mediclaim policy, you can claim up to a maximum of your sum insured. Whereas in case of disability due to critical illness or accident, you are also be given a lump-sum amount under health insurance.
• Hospitalization: To avail of the mediclaim policy, you need to be hospitalized for at least 24 hours. In the case of health insurance, you can take advantage of daycare procedure cover and you do not even have to be hospitalized for this.

(Read more: The best health insurance)

You have now understood the thin line between mediclaim policy and health insurance. Hopefully, this makes it easier for you to choose between the two. If you plan to take a mediclaim policy or health insurance for your health needs, it’s important that you keep certain things in mind. Consider whether the policy you are taking meets your expectations as the best health insurance company in the world is the one that fulfils your needs. You can also do a comparison between different mediclaim policies and health insurance policies to understand them better. In the end, choose the plan that is best for you and your family, not at the behest of anyone but yourself.