You have bought a health insurance policy in the hope it will help you meet unexpected medical emergencies. Out of ignorance or inability to comprehend minute terms and conditions, you didn’t notice your health insurance policy indeed covers hospitalization expenses but has a cap of Rs 5 lakh and doesn’t cover critical illness. So, any expenses up to Rs 5 lakh will be reimbursed, and anything above that amount will have to be paid by you. During such times, you could ask your friends and relatives for a loan, but considering the uncertain times induced by COVID, they might be a little hesitant to lend you a huge chunk of their savings. NBFCs and Banks such as Tata capital loan offers personal loan for medical emergencies up to Rs 25 lakh and Interest rates of tata capital personal loan starting from 10.99% can help the individual pay for healthcare expenses.
Fund from a personal loan is higher than insurance
An individual buys a health insurance policy as per their budget, considering the premium they have to shell out annually. At times, there could be a need for more funds than your coverage amount. This is where taking a personal loan could benefit you as one could loan up to ₹ 25 lakh with Tata Capital loan. With flexible tenures and low Tata capital personal loan interest rates ensures the amount can easily be repaid on an EMI basis. One should also know if the coverage amount once exhausted cannot be used twice in the same year, but this is not the case with a personal loan as the funds released from the loan can be used for years as per the tenure selected.
Time is taken for claim process vs disbursal
The last thing you would want to do when you are faced with a medical emergency is to file paperwork for the insurance company to process your request. One should know there are a lot of technical ifs and buts in a policy. For example, per day hospitalization expenses are covered up to a certain amount, and if you don’t understand the policy you’ve bought, there is a possibility you will be left in a lurch during crises. One of the several advantages or benefits of choosing for a personal loan is, one only needs to provide limited documents, choose a lender who is offering a lower interest rate on a personal loan, for example, tata capital personal loan interest rates starts from 10.99%, select the repayment schedule and after verification from the bank, the amount will be credited to the individual bank account. A personal loan from Tata capital loan gets disbursed within 72 hours.
No restriction on usage
Your health insurance will only cover the expenses stated in the policy and up to the amount. For cashless transactions, the policyholder needs to visit the partner’s hospitals. Not to forget, there are several costs involved during a medical emergency, such as transportation, medicines, supplements, particular surgery, which your medical insurance policy might not be providing coverage for. The uptake of taking a personal loan such as from Tata capital loan is there is no restriction on end usage of funds and in which hospital you choose to admit into. You can choose to spend on medical procedures or on travel tickets for flying down your loved ones for better hospitalization care in another city.
Claims could be rejected over minor issues.
Health insurance works as long as the details in the form are correct. If you have purchased a health insurance policy for your family members and one of them entered wrong details on the form, for example, they have ticked ‘no’ in the smoking category, but they do smoke occasionally, and in the future, any problem arises due to smoking, the health insurance claim will be rejected and the insurer will not get any amount. In some cases, individuals who have had major surgery such as bypass cannot avail health insurance. A personal loan, for example, a Tata capital loan, is extended to any salaried, self-employed individual who has a good CIBIL score and fulfils the eligibility criteria.
Health insurance is expensive for sole breadwinners
With health insurance, one has to purchase the policy every year to meet unexpected medical bills. And if you have a family of four or more, it could get expensive of shelling out a hefty premium, especially when you are the sole earning member as you have other expenses to cater to as well. In such a scenario, a personal loan could rescue you. One can easily get a Tata capital loan of up to 25 lakhs under 72 hours by fulfilling the eligibility criteria and submitting the requisite documents. Before selecting any lender, consider the interest rate they are charging as well as the repayment schedule. For example, Tata capital personal loan interest rates start at just 10.99%. By analyzing your fixed disposable income over the years, you can either choose to pay a fixed amount of loan and interest throughout the tenure or pay higher/lower EMIs in the initial months and vice versa at the later months depending on your income flow. Also you can get Rs. 5 Lakh Personal Loan from different banks.
It is true emergencies are rare, but they are always unexpected, and medical emergency is very expensive. Purchasing a health insurance policy is beneficial if you are admitted to a hospital where the expenses match the cap limit stated in your policy. For example, you have taken insurance for Rs. 10 lakh, and you are admitted to a high-end private hospital where expenses could run into 30-40k lakhs, then only ¼ of the expenses will be covered, and you end up arranging the rest of the funds. If you do not have a health cover or found out you have inadequate cover to fund hospital fees, it is better to take a personal loan from the right lender, such as a Tata Capital loan. If the amount has to be paid then and there, a credit card might be useful; however, if the process can wait for three days, make sure you opt for a personal loan. The rate of interest on a credit card is higher in comparison to a personal loan. Tata capital personal loan interest rates are competitive and come with a flexible repayment schedule of tenure up to 6 years.