The concepts of health insurance and personal health insurance are familiar in modern life, but not everyone understands the differences between these two types of insurance.
It can be seen that both health insurance and personal health insurance help participants cover expenses incurred due to illness and diseases. However, there are still differences between them.
1. Distinguishing health insurance and personal health insurance:
- Mandatory requirement: Health insurance is mandatory, while personal health insurance is entirely voluntary.
- Insurance coverage: Health insurance includes 5 categories: maternity, illness, occupational accidents, retirement, and death. It applies only within the territory of Vietnam. Personal health insurance applies in Vietnam and abroad, depending on the insurance contract.
- Compensation limits: Health insurance has a maximum payout limit of 45 months of basic salary for high-cost medical treatments. Personal health insurance compensation limits can reach billions of dong, depending on the agreed benefits in the contract.
- Choice of healthcare facilities: Health insurance provides limited options as participants must choose the designated healthcare facilities. Personal health insurance allows participants to choose private or international healthcare facilities, and even seek treatment abroad.
- Special benefits: Health insurance does not provide special benefits. Personal health insurance supports medical transportation expenses and home care services.
2. Can health insurance replace personal health insurance?
Health insurance cannot replace personal health insurance. Health insurance is a mandatory social welfare scheme managed by the government to ensure basic healthcare for all citizens. It is a non-profit activity with a standard premium and benefits for everyone. On the other hand, personal health insurance is a for-profit business activity that individuals voluntarily participate in to provide comprehensive protection for themselves and their families. Different health insurance packages have different premiums and corresponding benefits. If you have the means and want to ensure comprehensive protection against illnesses, accidents, casualties, etc., you can participate in personal health insurance.
3. Is personal health insurance expensive?
Personal health insurance is voluntary and typically has a one-year term with a one-time premium payment, so it cannot be considered expensive. Moreover, there are various personal health insurance packages available in terms of programs, products, and benefits, allowing you to easily choose a package that suits your ability and needs. For example, there are personal health insurance packages with prices ranging from 900,000 VND to 2 million VND. The price and benefits of the insurance depend on the specific type of contract you purchase.
I hope this article has helped you differentiate between health insurance and personal health insurance. With this information, I hope you can choose the right insurance product that suits your needs.
