Medical emergencies strike when you least expect it. With the cost of essential medical treatments skyrocketing daily, affording quality healthcare services is a big deal. Not everyone has the money ready to go for expensive hospital bills. Health insurances and medical loans are great options for affording treatment nowadays.
Both health insurance and medical loans have their pros and cons. However, there are specific points that lean in one’s favor. Health insurance is an investment that is made beforehand. You have to pay yearly premiums for health insurance, but it can be a better precautionary measure. At the same time, medical loans are taken after the medical emergency strikes. People may question why they should pay year-round for health insurance when you do not require healthcare facilities.
Remember, health insurance can provide you immediately when you need the money for treatment, while a loan can take much more time to process. Anyone with a health insurance agent license will agree with the benefits insurance has over a loan.
Which One is more Affordable?
While health insurance requires you to pay a certain amount of premium every year, it can surprisingly be the more affordable option. Such that the premium amount is not too large. But in the case of medical loans, you have to pay monthly installments to pay back your mortgage. These payments can vary significantly from the ones you require for health insurance. There is a huge difference between monthly payments and yearly ones. So if you want a more affordable option, health insurance is the way to go. Catalyst Insurance Group can provide you with various health insurance policies to choose from. Their agents can help you find the best suits you according to your budget.
Cashless Treatment from Network Hospitals
When you avail of a health insurance policy, several perks come with it. Cashless treatment at network hospitals is just one of them. In case of a medical emergency, you can get treatment at a hospital with a tie-up with your insurance company for free. The company will pay the insurance amount to the hospital without you having to bat an eye. This is a chance to avail of treatment without worrying about the money. However, no such perks are available alongside medical loans.
Credit Scores
If you have been planning on taking a house, car, or any other personal loan, then a sudden medical loan can jeopardize that. Loans require you to have perfect credit scores. If you cannot make proper EMI payments for your medical loan, it can also affect your chances of getting any other personal loan. Your credit score gets diminished. However, with health insurance, you do not have to worry about that.
Save Up on Taxes
Health insurance policies can help you save some taxes. As per the Income Tax Act, a premium paid for health insurance is eligible for tax deductions. No such benefit can be availed from medical loans.
Bottom Line
Both medical loans and health insurance can be viable options when you require sudden money for medical purposes. However, insurance can be much smoother and less worrisome than medical loans. Yearly premiums and immediate availability of cash are big enough reasons to go for health insurance.
