The economic impact of COVID-19 was felt by people from all sections of the society. The working class suffered the most, with lost livelihoods and medical bills piling. The global pandemic has taught us a valuable lesson — to be prepared for medical emergencies. Many of you may have health insurance coverage either individually opted for or covered by your employer. This leads to a few questions: Do you need a medical personal loan if you have health insurance? Can a personal loan be used to cover medical expenses? The answer to both questions is a yes. Let us understand how a personal loan can significantly help during medical emergencies.
Medical Personal Loan or Health Insurance?
Many salaried individuals and those with other sources of income have health insurance coverage. A health insurance policy offers an extensive range that covers treatment costs in India and abroad. In addition, one can also claim a tax deduction under Section 80D of the Income Tax Act of 1961. However, some treatments and charges are not covered by health insurance. Also, there are many situations where you might need to make a quick visit to the hospital. Often, such expenditure forces people to dig into their savings despite health insurance coverage. So you might have saved some money through a tax deduction, but you may end up using it to support the additional costs. In such cases, a medical personal loan can offer huge financial relief.
Top Benefits of a Personal Loan in Medical Emergencies
A medical personal loan can help you pay for medical costs that your insurance won’t cover. For example, if your health insurance covers a hospital stay for a maximum of 5 days, you can opt for a personal loan to support the additional costs.
Your health insurance may not cover some treatments and surgeries. For example, pre-existing illnesses and cosmetic surgeries might not be included in your health insurance. Instead of exhausting your savings, a medical loan could help you manage such situations better.
Hospitals that don’t offer cashless facilities might make you spend from your pocket or disturb your savings. For example, if someone elderly in your family shows severe symptoms, there is no time to reach a network hospital far from your home. You may have to pay a huge amount for emergency admission to the nearest hospital. A personal loan for medical purposes usually has fast disbursal. If you are eligible for a medical personal loan, such expenses can be taken care of easily.
Many non-medical and diagnostic tests might require you to pay from your pocket. For instance, the costs of scans and blood tests might have to be individually taken care of. Instead of using money from your savings, which you may have reserved for something else, you can opt for a medical personal loan to take care of such miscellaneous costs.
Coming back to the COVID-19 pandemic, many patients who recovered have had to spend a huge amount of money on alternative therapies and health supplements during their recovery. A medical personal loan may have helped them leave their savings undisturbed and continue their road to recovery.
Advantages of a Personal Loan During Medical Emergencies
Easy application and disbursal
You can apply for a loan online through the bank’s official website. The application process is as quick and easy as the loan disbursal. Applicants with a good record often receive money on the same day, sometimes within hours. This is a great relief during a medical crisis when every moment is critical.
Like other personal loans, a medical loan also requires limited documentation. Usually, applicants only need to submit their KYC (Know Your Customer) documents, bank statements, and salary slips.
Collateral not required
Because a medical personal loan is an unsecured loan, you don’t need any collateral. However, your lender will review your application to ensure you can repay the loan.
One of the most significant benefits of a personal loan is that the applicants can choose to repay in two to six years. The flexible repayment helps them decide whether they would like to pay off the loan in 12 months or 60 months, depending on their existing debts and expenses.
Savings and investments undisturbed
You may have an emergency fund for unforeseen situations in life. However, it is not fair that the money from that account is repeatedly used to take care of medical emergencies. Also, pausing investments to divert extra cash or savings for medical purposes would not benefit you in the long run. Therefore, a medical personal loan is the best option, as it lets you save and take care of a medical crisis.
Life surprises us in many ways, and sometimes the surprises are unpleasant. A medical emergency can be overwhelming and financially exhausting. A family member’s sudden illness, a freak accident, a child getting injured while playing, or even regular care for the sick and elderly are some situations where you must think about how a medical personal loan would benefit you. Many individuals keep loans as the last resort and first exhaust all avenues, including asking for help from family and friends. However, a personal loan, such as the Mahindra Finance personal loan, puts you in control of everything. A personal loan is easy to get if you are an eligible applicant and allows flexible repayment. In addition, it will enable you to approach medical crises armed with funds and a little relief about not having to exhaust savings on additional costs. You can check more informative blogs on Piramal Finance and explore their products and services.