Both my grandparents held government positions and have traditionally depended on Mediclaim, a healthcare coverage method that was once customary within our family. I distinctly recollect from my childhood, that countless conversations were centered around the benefits of Mediclaim, a term that likely resonates with you as well.
The year was 1986. Mediclaim had just been launched by the Indian government. These policies offered a minimum coverage of ₹15,000 and a maximum coverage of ₹5 lakhs. When evaluating the pricing within the healthcare sector at that time, these coverage amounts were deemed sufficient. The primary objective was to supply individuals with a financial safety net during unforeseen medical emergencies.
As a child, I barely paid heed to these matters. However, as I matured and reached an age where I was entrusted with making financial choices, two pressing queries began to occupy my thoughts:
Are health insurance and Mediclaim insurance the same? If not, which one offers better protection?
In many countries, including India, two common terms are often used interchangeably: Mediclaim and health insurance. While they both provide financial coverage for medical expenses, there are significant differences between the two. Understanding these distinctions is crucial to making informed decisions about your healthcare coverage.
After careful consideration and taking an expert opinion from Chartered Accountant Abhay Asknani, I made the decision to transition them from Mediclaim to health insurance.
The healthcare landscape constantly evolves, and so must our strategy for ensuring our loved ones enjoy the most robust coverage available.
Abhay says, ‘When choosing between the two, it's important to consider your specific healthcare needs, budget, and long-term goals. However, after careful deliberation, I made the decision to switch them from Mediclaim to Health Insurance.’
In this article, I'll share the reasons behind my decision and compare Mediclaim Insurance with Health Insurance thoroughly.
Mediclaim
Mediclaim is a term widely used in India to refer to a specific type of health insurance policy. It is a more limited form of coverage, primarily designed to cover hospitalisation expenses resulting from an illness or accident. Mediclaim policies typically include coverage for the following:
· Hospitalisation Expenses: Mediclaim policies focus on covering the costs incurred during hospitalisation, such as room charges, surgeon's fees, anesthesia, and medicines related to the treatment.
· Specific Ailments: Some Mediclaim policies may cover only specific ailments or surgeries, providing limited coverage.
· Limited Scope: Mediclaim plans usually have a limited scope of coverage and may not include other healthcare-related costs like outpatient treatment, preventive care, or maternity benefits.
· Lower Premiums: Since Mediclaim policies offer a more focused coverage, the premiums are generally lower compared to comprehensive health insurance plans.
Health Insurance
On the other hand, health insurance is a broader term that encompasses a wider range of coverage options, not limited to hospitalisation alone. Health insurance provides comprehensive protection for various healthcare-related expenses. Here are its key features:
· Comprehensive Coverage: Health insurance plans offer a wider scope of coverage, including hospitalisation, outpatient care, preventive services, diagnostic tests, maternity benefits, and even critical illness coverage.
· Flexible Options: Health insurance policies come in various forms, allowing you to choose a plan that suits your needs. These options can include individual health insurance, family floater plans, group health insurance, and more.
· Higher Premiums: As health insurance provides more extensive coverage, the premiums are generally higher compared to Mediclaim policies. However, the increased coverage justifies the higher cost.
· Wellness Benefits: Many health insurance policies also offer wellness benefits, which can include access to regular health check-ups, discounts on health-related services, and other incentives to encourage a healthy lifestyle.
· Long-term Benefits: Health insurance policies often have long-term benefits and can be renewed annually. They are suitable for individuals and families looking for continuous health coverage throughout their lives.
If you find yourself in a similar situation, it is worth considering the transition from Mediclaim to health insurance, especially as healthcare needs change with age. Carefully assess your family's requirements and consult with insurance experts to make an informed decision that best serves your loved ones' healthcare needs. Making the switch can be a crucial step towards providing the comprehensive protection and peace of mind that our parents deserve.
Abhay concludes by saying, ‘Ultimately, the decision between Mediclaim and Health Insurance will depend on your individual circumstances and requirements. It's advisable to carefully review the policy terms, consider your health history and future needs, and consult with a financial advisor or insurance expert to make an informed choice that provides the best healthcare coverage for you and your family.’