Health Insurance vs Medical Insurance

No two life journeys are the same, although we all face unexpected twists and turns at some point. Unforeseen accidents, or as we are currently experiencing, global pandemics, really throw a spanner in the works of financial plans meticulously budgeted to cover day-to-day expenses. In the event of accidental injury or illness that requires medical care, you may take comfort in the fact that you already have medical insurance that covers hospitalization expenses, however, you may not have considered the many incidental costs that rack up fast, making an already stressful medical event a desperate nightmare.

As hard as it is to even imagine yourself or a loved one in such a situation, in order to dodge life’s curveballs, you need to be prepared for any and every eventuality. Part of being prepared means knowing the difference between health insurance and medical insurance. You didn’t know there was a difference, did you? Well, you’re about to learn something new!

What is the difference between health insurance and medical insurance?

Although you may have thought that “health insurance” and “medical insurance” are essentially the same thing, the two are quite different.

Regular private medical insurance generally covers specific medical events such as hospitalizations and routine medical care according to the plan you have chosen. Typically you would only be covered in facilities that fall within the insurance provider’s network list, and with cost limits and co-payments in place for certain medical procedures and treatments. Most medical insurance plans have annual limits which can be exhausted, and not all expenses are covered.

Consider the following:

  • In the UAE, an individual spends approximately AED 950 per year on out-of-pocket healthcare costs.
  • 48% of all healthcare spending occurs at hospitals in the UAE.
  • Injuries are the second most common cause of medical problems in the UAE.*

While medical insurance is beneficial, when it comes to unexpected accidents, saving your life shouldn’t cost you your life savings. Health insurance covers you by providing you with a cash allowance for each day of hospitalization. The cash allowance can be used for meeting additional expenses that are not covered by your medical insurance, for compensating the loss of income during the period of hospitalization, or for any other reason.

Health Insurance is designed to help you pay for unexpected expenses including those expenses that medical insurance may not cover. If you or someone in your family gets hurt or falls ill, there are often costs and expenses you didn’t plan for like deductibles, copays, extra costs for out-of-network care, and a host of existing non-covered services. That’s why health insurance is a great supplement to your medical insurance. It acts as a blanket cover to help offset the costs that may come with an accident. As mentioned, these expenses can add up fast, and you shouldn’t have to choose between getting the healthcare you need and remaining financially stable.

What is the AIG Health Plan?

Accidents are expensive, and when you think about the stress that comes with a car accident, for example, the last thing you want to be worrying about is how you’re going to pay for your everyday living expenses while you’re in hospital. With the AIG Health Plan you will be covered if injury or sickness results in hospitalization. AIG's Hospital Cash Insurance product covers you by providing you with a cash allowance for each day of hospitalization when you need it most. The extra cash will help you focus on your recovery, and because the money is paid directly to you, independent from existing medical insurance, it’s yours to spend however you like.

AIG Health offers independent cover from other existing insurance policies, premiums start from just AED 95 per year, and you can receive a daily cash allowance of up to AED 500 for each day of hospitalization.

What’s covered?

Every plan covers COVID-19 positive patients, for up to 5 days, and hospitalization due to accident or sickness, for a maximum period of 45 days.

Eligibility Criteria

  • Minimum / Maximum Age at Entry: 3 months - 64 years (Person should be 64 years at the time of enrollment and cover stops at 65th year)    
  • Maturity Age: 65 years
  • The person must be a resident of the United Arab Emirates

Main Exclusions

  • Hospitalization arising from or that can be linked to a pre-existing condition
  • Pregnancy and childbirth
  • Self-inflicted injuries
  • War and terrorism
  • Professional or hazardous sports
  • Accidents under the influence of alcohol/drugs

A full list of exclusions can be found in AIG Health policy wording.

Key features

  • 24 hours worldwide coverage     
  • Choose from three different plans and two different durations based on your unique situation
  • Flexible monthly or annual payment options
  • No medical exams required

AIG is a leading global insurance organisation with 100+ years of experience, serving more than 90 million customers, with a presence in over 80 countries worldwide, and over 60 years of experience in the Middle East.

Request your quote today 


* Sources