Difference between health insurance and medical insurance

Know the difference between health and medical insurance, their coverage, benefits, and features to help you choose the most suitable plan for your needs.
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Difference between health insurance and medical insurance
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3 min
20-July-2023

Health and medical insurance are two terms that are often used interchangeably, but there is a difference between the two. Understanding the difference between health insurance and medical insurance is important when choosing the right policy to meet your needs.

What Is Health Insurance?

Health insurance covers the cost of medical and surgical expenses incurred by an individual or a group. These policies are designed to provide financial protection against the costs of medical care. It includes preventive care, doctor visits, hospital stays, and prescription drugs.

Health insurance policies are usually purchased by individuals or provided by an employer as part of a benefits package. These policies can include a range of benefits and services to help individuals maintain their health and well-being.

Disease Related

Opt for disease-specific health insurance if you have a family history of critical illnesses. It offers targeted coverage and financial support for treatments like chemotherapy, dialysis, and specialized care.

Disease Related

What is medical insurance?

Medical insurance, also known as critical illness insurance, is a type of insurance that provides coverage for specific medical expenses related to a serious illness or injury. This type of insurance policy is designed to provide financial protection against the high costs of medical care that may not be covered by a typical health insurance policy.

Medical insurance policies may cover expenses related to surgery, hospitalisation, rehabilitation, and other services associated with a serious illness or injury. The policy may also provide a lump sum payment to help cover additional expenses and make up for lost income during the recovery process.

Health insurance vs medical insurance

Given below are the key differences between a health insurance policy and a medical insurance policy:

Health insurance

Medical insurance

Provides broad coverage for a range of health-related expenses.

Provides coverage for specific medical expenses and illnesses.

Typically purchased by individuals or provided by an employer (group health insurance).

Typically purchased as an add-on to a health insurance policy.

Covers preventive care, doctor visits, and prescription drugs.

Covers expenses related to surgery, hospitalisation, and rehabilitation.

May require co-payments or deductibles.

May provide a lump sum payment to cover additional expenses and income loss during recovery.


Are health insurance and medical insurance the same?

Health insurance and medical insurance both provide financial coverage against medical expenses. However, medical insurance may provide lesser sum insured than health insurance. This is because health insurance provides extensive coverage for medical-related expenses

Finally, there may be differences in the way in which claims are processed under health insurance and medical insurance policies. Health insurance policies may require pre-authorisation for certain procedures or treatments, or they may require co-payments or deductibles. Medical insurance policies may have different restrictions and requirements, depending on the policy and the specific treatment or procedure being covered.

In conclusion, while health insurance and medical insurance may have some similarities, they are two very different insurance products that serve different purposes. By choosing the right policy, individuals can protect themselves against the high costs of medical care and ensure that they receive the treatments and procedures they need to maintain their health.

Other health insurance terminologies you must know

Here’s a list of terms you should know about health insurance.

Some other informative content

Types of health insurance

Claim settlement ratio

Waiting period of health insurance

Co-pay in health insurance

What is health insurance

Best health insurance plan

Mediclaim policy

Health insurance tax benefit

Frequently asked questions

What is the difference between health insurance and medical insurance?

The main difference between health insurance and medical insurance is the scope of coverage. Health insurance policies are designed to cover a broad range of medical expenses, including preventive care, doctor visits, and prescription drugs. On the other hand, medical insurance policies provide coverage for specific medical expenses related to a serious illness or injury.

Can I purchase medical insurance without health insurance?

Medical insurance policies are typically purchased as an add-on to a health insurance policy. This means that you will need to have a health insurance policy in place in order to be eligible for medical insurance coverage.

Do health insurance policies require co-payments or deductibles?

Yes, health insurance policies may require co-payments or deductibles. These are designed to help share the cost of medical care between the policyholder and the insurance provider.

Can I purchase health insurance or medical insurance on my own?

Yes, both health insurance and medical insurance policies can be purchased by individuals. Health insurance policies can also be provided by an employer as part of a benefits package.

What is the difference between a medical policy and a health policy?

A medical policy mainly covers hospitalization costs like room rent, surgery, and medicines. A health policy offers wider coverage, including pre- and post-hospitalization, daycare, critical illness, and sometimes OPD.

What is the meaning of health and medical insurance?

Health/medical insurance is a contract where the insurer pays for your medical expenses—like hospitalization, doctor’s fees, and treatments—in return for a premium. It protects you from high healthcare costs and ensures access to quality care.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited, Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure & policy wordings carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also distributor of other third-party products from Assistance service providers such as CPP Assistance Services Private Limited, Bajaj Finserv Health Limited. etc. All product information such as premium, benefits, exclusions, value added services etc. are authentic and solely based on the information received from the respective Insurance company or the respective Assistance provider company.

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