Difference Between Health Insurance and Medical Insurance

Health insurance is insurance of your health just like you get your other assets and valuables insured. Nobody likes to think of a time in the future when he becomes ill or faces an accident. But mishaps and diseases are inevitable. Cost of health care facilities has been increasing exponentially, and it is very difficult to meet the expenditures on hospitalization, visits to doctors, and drug prescriptions out of your own pocket. This is why people opt to get health insurance policies from insurance companies to protect themselves from financial burden in the eventuality of falling prey to diseases. There is another term medical insurance that is similar to health insurance and confuses many people. Let us find out if there is any difference between health insurance and medical insurance.

Health Insurance

Nobody wants to fall ill. However, one has to remain prepared for the worst in life. This is the basic principle behind health insurance. The concept of health insurance is such that it does not make a person feel good as he has to pay out of his pocket when he is healthy, but the same concept comes to the rescue of the individual as it covers for his medical expenses when he needs a surgery or hospitalization on account of a major illness.

Health insurance is actually a contract between an individual or a group of individuals and the insurance company whereby the insurance company undertakes to cover the medical expenses incurred by policy holders to the tune of the amount mentioned in the policy. The amount of premium is dependent upon, not just the diseases or illnesses covered, but also the age and sex of the policy holder as well as his present age and medical condition.

Medical Insurance

All of us know that life is full of uncertainties and mishaps can take place anytime. However, we remain complacent thinking that the worst is for others and that nothing is going to happen to us or our dear ones. Medical insurance, as the name implies, is a kind of insurance that looks after our medical needs when we fall ill or face a mishap. The rate at which health care is becoming expensive and out of bounds of common people makes it a compulsory for all of us to get medical insurance for ourselves, as well as our family members. Medical insurance allows us to pay affordable premiums and leave the worries of expenses in the eventuality of hospitalization on the shoulders of the insurance company. You need not dig deep into your pocket or savings during the duration of the policy as all expenses related with the illnesses mentioned in the medical insurance are met by the insurance company.


Health insurance or medical insurance, as it is referred to by some people and insurance companies, is a type of insurance that protects people from financial burden that is incurred on meeting hospitalization, surgery bills, visits to doctors, and prescription of drugs. There is no difference between the two terms and both reflect the same principle of buying affordable insurance policies that prevent people from digging into their pockets in the event of a future mishap or illness. While policies may differ in the extent of coverage and the illnesses covered, both health insurance and medical insurance require people to pay premiums every year or earlier to the insurance provider.