Why Health Insurance is Better than Medical Loan


Why Health Insurance is Better than Medical Loan

Advancement in medical sciences is giving rise to medical inflation. Treatments and medication are getting expensive day by day. Hospitalization, doctor’s fees, diagnosis, medicines, etc. are hitting the roof. It leads to the emergence of lump sum money. Therefore, health policy is vital. It covers your hospital and treatment expenses so that you can focus on recovery without worrying about money. However, sometimes due to an urgency, people go for a medical loan and leave with regret. Read why health insurance is always better than a health care loan.

Immediate Hospitalization

With the help of medical insurance, you can get immediate hospitalization. You do not need to get into the cumbersome paper formalities, home, and workplace verification, reference check, credit score check, etc. as you have to do while opting for a health care loan. You need to pick the network hospital near to your residence and get admitted for timely treatment.

Cashless Treatment

The foremost important feature of health insurance is cashless treatment. During a medical emergency, you can go to any network hospital for treatment. You do not require to arrange cash for hospitalization. Your treatment and medication expenses cover under health policy. You do not need to pay anything from your pocket for your treatment, which is not possible in health care loans. 

Network Hospitals

None of the medical loans can give you the facility of network hospitals. However, in medical insurance, you have multiple options for network hospitals. You can choose any which is located near to your residence. These hospitals are well-equipped and have experienced doctors and medical staff. 


Premium paid against medical insurance according to the sum insured is comparatively less than the loan interest rate. If you are healthy and have no pre-existing diseases, you can avail special discount on the premium. Moreover, you can also get the tax exemption under section 80D of the Income Tax Act of India 1961 against the premium paid for your health policy. 

Extra Benefits

You will not get extra benefits from a medical loan. Under health insurance, you can buy several add-ons like no claim bonus super, international second opinion, global coverage, OPD expenses, and more to enhance the coverage for best medical care.

No Affect on Credit Score

Any type of unsecured loan, including a loan for treatment, affects your credit score. There is a high possibility that you may not get a loan for a house, car or any other purpose in the future. Therefore, for your health care needs, medical insurance is the best solution. 


Thus, a medical loan is an unsecured personal loan that is time-consuming and has a high-interest rate. Such loans are not helpful during a medical emergency and can create an unnecessary burden on your financials. Whereas, health policy brings you financial security and protection at the time of medical urgency. You can get it online in minutes with lots of benefits. So, opt for Care- a hand-picked medical insurance policy offered by Care Health Insurance now and escape yourself from a trap of such loans.

Disclaimer: Plan features, benefits, coverage, and underwriting of claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.

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