What Sets A Health Insurance Plan Apart From A Health Policy?

Do you consider yourself to be healthy? If so, we are delighted for you. But are you certain you’ll be healthy in the future? No one of us is. It is preferable to plan ahead of time for yourself and your loved ones in order to avoid future worries. You do not know where to begin, do you? Don’t worry, we’re here to assist you.

Well, there are two ways to get the finest advantages in the event of a medical emergency: one is to have a health insurance plan, and the other is to have a health policy.

However, a widespread misunderstanding is that health policy is synonymous with health insurance. Instead of understanding the distinction between health policy and health insurance policy, people simply purchase a plan they come across.

The fact is that health policies and health insurance plans are not the same thing. Each of them has its own definition, despite the fact that they appear to fulfil the same aim. It is past time to dispel this myth by delving deeper into the distinctions between health insurance plans and health policies.

Before enrolling in a plan, you should understand the distinction between a health policy and health insurance and not choose one over the other without careful consideration. The fundamental distinctions between health policy and health insurance can assist you in determining which is best for you in terms of your financial and health situation, the amount you are prepared to pay as a premium, and the coverage you require.

This blog is penned for you to help you decide if a health policy or a health insurance policy is preferable for you, as well as what you can do if both policies fail to provide coverage. So, Health Insurance vs Health Plan: Which Is Best for You? Continue reading to learn more.

Health Policy: What Is It?

A health policy, often known as a mediclaim policy, is intended to offer coverage for medical expenditures. Consider it to be a low-cost solution that may help you deal with an unforeseen health problem.

However, the coverage it provides is quite restricted, whether in terms of hospitalisation costs or the cost of treating a specific condition. Any additional expenses not covered by this policy must be met by you or your family.

The key benefits of health policies are as follows:

  • Health Cover: A health policy usually works on the basis of a pre-determined amount insured payable for disease-specific treatment and hospitalisation expenditures.

  • Simple Claim Resolution: A health policy’s claim is basically paid in the form of reimbursement and cashless treatment.

  • Family Coverage: You may get a health policy to cover yourself as well as your loved ones, which includes your parents, children, and spouse.

  • Tax Benefits: When you get mediclaim coverage, you might lower your tax burden. The 1961 Income Tax Act (Section 80D) defines it.

Health Insurance Plan: What Is It?

Health insurance plans or medical insurance plans cover a variety of expenditures incurred by the covered individual as a result of medical treatment or surgery. Usually, insurance coverage is offered in the form of direct bill payment with the hospital or reimbursement of the covered individual’s treatment costs.

All of the benefits put forward by a health insurance plan are bottomed on its exclusions and inclusions. Health insurance, in general, provides more extensive coverage when compared to a health policy. This might be one of the reasons for their higher premium amount.

The key benefits of health insurance include:

  • Comprehensive Coverage: A medical insurance plan provides extensive coverage, which includes critical illness insurance for a pre-defined range of critical ailments or health conditions.

  • Rider or Add-on Availablity: Riders or add-ons can be used to supplement the benefits of health insurance. The availability of add-ons may differ from one insurance provider to the next.

  • Policy Renewal Discounts: If you have a health insurance plan, you may get an NCB (No Claim Bonus) during the time of policy renewal if you haven’t submitted any claims during the previous policy duration.

  • Tax Benefits: Well, tax benefits are the same as a health policy. The insurance premium you pay qualifies you for tax breaks.

Summing Up

Choosing between a health policy and a health insurance plan is simple if you know what’s best for you as well as your family. Several factors will influence your selection, including:

  • Your financial situation
  • Health issues that that you and your family are coping with
  • If you believe in long-term or short-term planning
  • Your willingness to pay higher premiums
  • If you require flexibility in your health plan
  • If you require additional coverage and benefits
  • Consider your as well as your loved one’s life stage, age, and health condition

If you want any other information regarding health policy and health insurance, do get in touch with Tata AIG! We are always willing to assist you in making an informative decision.