Difference between Health Insurance Policy and Mediclaim Policy

by Kirti Saxena Kirti Saxena is a web enthusiast and a writer Ms. Verma had insisted her husband to take health insurance for entire family as she believed that is essential to evaluate health insurance needs timely in order to meet unknown contingency. Last week when their son suddenly underwent hospitalisation, their health insurance policy came to their heed. It was then that Mr. Verma realized the importance of health insurance policy and thanked his wife for her wisely and timely advice.

Ultimately health is wealth and the rising expense in medical sector may impede you from availing required treatment if any medical need arises. A comprehensive mediclaim insurance would ensure minimum financial repercussions arising out of immediate hospitalization due to illness or accident.

Benefits of health insurance policy:
•    Timely arrangement of financial assistance
•    Any health emergency can be handled without burning a hole into your savings
•    In case of critical illness like cancer or stroke provides financial assistance towards treatment and miscellaneous needs
•    Tax saving under section 80D

Difference between health insurance policy and mediclaim policy

Mediclaim insurance is a type of health insurance plan.
Basically, two types of insurance products are offered by the insurance companies: indemnity products and benefit products.
In indemnity products the actual cost of treatment is borne by the insurance provider upto the extent of sum assured. Sum assured is the maximum amount the insurance company has promised to pay. The policy holder has to present the medical bills and other necessary documents to avail the claim. For example, if you take a policy which has sum assured of Rs 3lacs and the cost of treatment comes to Rs1 lac then the insurance company would pay Rs 1 lac as that is the actual cost of treatment. Mediclaim policy comes as a part of indemnity product.

In benefit products the health insurance companies pay a lump sum amount to the insured upto the extent of sum assured. Critical illness policy is a type of benefit product. For example, if the insured is diagnosed with cancer and his sum assured is Rs 50 lacs then the insurance company would pay the total amount in lump sum and submission of all the bills is not required. Once then amount is settled the policy terminates.

Selecting a right health insurance policy
Now, that you are aware of the types of health insurance products decide which would meet your requirement. If you have a mediclaim policy from your employer then you can think of taking a benefit health insurance policy.  Both the policies have their own sets of benefits so take comprehensive cover to protect your family.

For more information visit:Health Insurance and Mediclaim Insurance

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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