Health Insurance vs Medical Insurance: Which Company is Best in 2021?

What do you think health and medical insurance are the same? The answer is “no.” There have a few important and core differences which we are going to show you. So, let’s start to see the information between Health Insurance vs Medical Insurance.

Many of us have often heard these two terms – “health insurance” and “medical insurance”. Most people interchange the words and often get confused. The terms may sound similar to each other, but there is a slight difference between them. If you are also confused like others, this article will help you clarify your doubts about the health and medical insurance.

So, what exactly are health and medical insurances?

Health Insurance vs Medical Insurance:

Health Insurance

A health insurance policy provides coverage for all hospitalization expenses. It ranges from the costs of pre-hospitalization to post-hospitalization. It is a comprehensive insurance policy, which safeguards you from uncertain medical expenses.

Types of Health Insurance

Health insurance is divided into the following categories:

1. Individual Health Insurance:

An individual health insurance plan is typically customized for a single person. This plan provides coverage for any time of sickness, hospital costs, accidents, and other medical crises.

2. Family Floater Health Insurance:

A family floater health insurance policy is specifically designed for family members. This type of policy provides insurance for individual members of the family with a fixed amount.

3. Senior Citizen Health Insurance:

A senior citizen health insurance is for those people who are above the age of 65 years. It provides coverage for organ donation costs, home hospitalization, critical illness care, etc.

These are the major types of health insurance plans. Besides, there are some other plans that cover the expenses for pre-existing diseases, surgeries, and preventive healthcare.

Medical Insurance

Medical insurance is almost similar to health insurance; however, it has limited coverage for hospitalization and treatment expenses. Medical insurance does not offer any kind of add-on-coverage like health insurance. You can claim for medical insurance either by cashless options or reimbursement. In the cashless option, the insurance company bears all the hospitalization expenses. Whereas in the reimbursement procedure, the insured has to keep all the original documents to be reimbursed for the amount he has paid.

Types of Medical Insurance

Here are the types of medical insurance plans –

1. Individual Medical Insurance:

This type of insurance policy provides coverage to a single person with a certain amount.

2. Family Floater Medical Insurance:

This policy is meant for the individual members of a family. According to the policy, if an insured family member dies or reaches a particular age, the plan for that individual will be shut down. Moreover, the other members of the family cannot renew the policy.

3. Pre-existing Disease Coverage:

This plan offers the policyholders to get coverage for all their pre-existing diseases that they had before purchasing this plan. Not only that, but you also get coverage for those diseases that will arise from your pre-existing diseases.

Comparison between Health Insurance and Medical Insurance

Now let’s see what makes health and medical insurance different from each other:

Medical Insurance

Health Insurance

Provides coverage only for hospitalization, pre-existing diseases, and accidents for a certain amount. Does not only provide coverage for hospitalization, but it also covers pre and post-hospitalization including ambulance fees.
Does not provide any add-on coverage. Provides add-on coverage like critical illness and accidental disability.
The pre-assured sum is up to Rs.5 lakhs. The pre-assured sum limit is Rs.6 Crores.
There is no flexibility in regards to coverage. The policyholder has the option to reduce the duration of the policy and the premium amount after a specific period.

So, these are some of the common differences between health and medical insurance. Individual insurance companies provide different benefits for their members. Both medical and health insurances are equally beneficial in the health sector. Therefore, you have to make a wise decision before purchasing any of the insurance policies.

Frequently Asked Questions

  • What is the benefit of health insurance?

Health insurance provides you with a safeguard against any unexpected medical expenses. You have to pay less premium amount if you are in-network health care. With a health insurance plan, you get free preventive care including vaccines, screenings, and check-ups.

  • Which is the cheapest medical insurance?

If you are a citizen of the United States, the cheapest medical insurance will be Medicaid. However, you have to enroll yourself in the federal insurance program in order to be eligible for Medicaid. The most important requirement is that your household income has to be less than either 133% or 138% of the Federal Poverty Level (FPL).

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