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Health Insurance

We all are young, healthy and happy in our perfect world. But unfortunately, we don’t live in an ideal world. It remains no surprise that a health scare can catch us at any time, and the worst thing is that we remain unaware of it. Thus, it is essential for all of us to be ready every time in the best possible way. Apart from emotional and physical trauma, a medical emergency is very expensive. We are fortunate that there are several ways to deal with emergencies without draining our savings of the whole life and disturbing personal finance.

Now, you can avail yourself of Axis bank personal loan or from any other financial institution to deal with your medical emergencies, which helps you manage healthcare expenses. Another approach that you can have is to buy health insurance that also covers all the medical experts incurred.

Let’s look at what these two options mean, the major differences and the benefits so that you can make an informed decision about your health.

Health Insurance

Health insurance is a type of insurance that covers either the whole or part of the risk of a person facing medical emergencies and making expenses. Based on the terms, either the insured pays for the expenses and gets reimbursed subsequently, or the health insurance service provider will directly pay the expenses in the hospital or healthcare facilities.

Medical Personal Loan

As the name suggests, a personal loan falls under the category of personal loan that one can avail to deal with different contingency situations related to urgent medical expenses like surgical procedures, operations, therapy or any other concerns related to health. The best thing is that it is extended by both banks as well as NBFCs (Non-Banking Finance Companies).

Pointing Out the Differences

A medical loan is a great saviour in case an unexpected illness hits a person to meet all the expenses. While on the contrary, health insurance is mainly bought as a precautionary measure in case any emergency occurs. You can cover all expenses like prescription bills, hospitalization, surgeries, and other treatment with a medical personal loan. You can utilise the money for the betterment of your health.

Health insurance covers the expenses based on the type of insurance as well as the sum assured. For instance, health insurance might cover only hospitalization and exclude critical illness. In addition to that, it will not exceed the amount of your sum insured; for example, if you have a policy of 5 lakh, the person will have that much amount only. You will pay anything more than that.

Another major difference is that a medical loan which is also a personal loan, needs to be paid on an EMI basis, and it is very convenient for the borrower. On the contrary, health insurance is an annual purchase that mainly helps you to mitigate the risk of health cost exposure.

Perks of Medical Loan

  • Limit up to 25 lakh
  • Quick and hassle-free disbursal
  • Needs basic documentation
  • Collateral free loan
  • Flexible tenure and EMIs
  • Covers all costs

Perks of health Insurance

  • Offer cashless hospitalization
  • Can get insurance of up to 1 crore by certain companies (subject to claim)
  • Offers flexibility on the type of insurance and amount
  • Saves from financial stress
  • Helps you to get tax benefits
  • Can be bought online


When it comes to health insurance, it comes with certain drawbacks. For example, if someone is suffering from diseases like diabetes or high blood pressure, the cost of health insurance will increase. In case you undergo a major treatment, the company will never offer you extended cover.

Apart from that, there are so many ‘ifs’ and ‘buts’ that are not very clear to people buying one. Overall it seems that both the options are feasible, but before you buy one, it is important to make enough consideration. Please share your thoughts on the discussion below in the comment section.

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