Mediclaim Vs Health Insurance: Which One Should You Buy?

Introduction

A mediclaim policy covers the cost of in-patient hospitalisation when you are admitted into the hospital. A health insurance policy also does the same. “Then what is the difference between the two and which one should you buy?” This is one of the most common questions asked by people looking for health insurance coverage.

Difference between Mediclaim & Health Insurance
A mediclaim policy is kind of a prototype of the current lot of health insurance policies which are now sold in the market.

While a mediclaim policy just covers the cost of in-patient hospitalisation, there are many more benefits offered by a health insurance policy. These are benefits which might not directly be categorised as cost of hospitalisation, but are linked to the treatment you take in a hospital. This makes a health insurance policy more comprehensive as it covers a wide range of benefits. And hence health insurance policies are usually more expensive than regular mediclaim policies.

Health Insurance Offers Greater Protection Than Mediclaim
Now let’s take a look at some of the extra benefits which are offered by health insurance policies in India.

Pre- and Post-Hospitalisation Expenses

These are expenses which you incur before and after hospitalisation such as consultation charges, diagnostic tests costs, cost of medicines etc. Most of the new age health insurance policies cover these costs on reimbursement basis apart from covering your in-patient hospitalisation expenses.
Day Care Procedures – Mediclaim policies do not cover day care procedures as they require hospitalisation only for a few hours and hence do not come under in-patient hospitalisation. But with the advancement of technology, there are now many treatments or medical procedures which are done on day care basis such as cataract surgery, kidney stone removal, chemotherapy, dialysis etc. A health insurance policy covers costs of these procedures as well and hence offers greater protection.

Riders or Add-ons

A health insurance policy allows you to choose extra benefits in the form of riders or options. These may include critical illness cover, reduction in waiting period for pre-existing diseases, higher no claim bonus or restoration benefits. You can actually pick and choose the benefits depending on your requirements. For example, a person with a pre-existing disease might be looking for a health insurance plan which offers a lower or zero waiting period for that PED. This could also be chosen as an add-on by paying some extra premium. A mediclaim policy usually does not come with such benefits.

Ambulance Charges, Maternity Benefits, Restoration Benefits Etc.

A health insurance policy offers many more benefits such as ambulance charges, restoration benefits, maternity benefits etc. The benefits offered vary from plan to plan and you must check before buying which plan suits you the best.

Premiums

A health insurance policy costs you much more than a simple mediclaim plan. The reason is simple; it offers greater benefits. Ideally you should choose a policy which provides cover based on your needs. However, if you find the plan to be too expensive, it is always better to look for alternatives which just cover the basics such as a mediclaim policy. Remember that you have to pay your health insurance premiums every year to keep your policy running. And health insurance is only going to get more expensive with time and age. A plan with outrageous or crazy benefits which looks affordable now could become very expensive in the long run.

Key Takeaways

A mediclaim policy covers the cost of in-patient hospitalisation which is also covered under a health insurance policy.
But a mediclaim policy is a plain vanilla product while a health insurance plan offers much more.
Important benefits covered by a health insurance policy include Pre and Post Hospitalisation Expenses, Day Care Procedures, Riders and Options, Ambulance Charges, Maternity Benefits, Restoration Benefits, No Claim Bonus etc.
A health insurance policy offers greater protection and hence is more expensive when compared to a simple mediclaim plan.

However, adding more benefits makes the policy more expensive and can even impact renewability as the plan becomes more expensive with time and your premium payment capacity might be limited.

Hence choose wisely and buy a health insurance policy which covers benefits required by you or your family. If it is too expensive for you to afford, you can look at simpler products such as a mediclaim plan.

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