What are Medical Loans?
Medical loans are personal loans for medical expenses. When procedures go outside the limits of insurance coverage, or if necessary treatments aren’t covered by insurance at all, medical loans can help bridge the gap during trying times. Learn what to expect and which options make sense for your medical situation.
Most Common Medical Loans
There are many common medical procedures that insurance companies do not cover. Orthodontia, reconstructive surgery, hair restoration, and bariatric procedures are typically categorized as “cosmetic” treatments, and therefore are often rejected by health insurance. Similarly, fees that address infertility, in vitro fertilization, or adoption are usually outside the scope of most plans.
Types of Medical Loans
If medical expenses are proving to be outside your current budget, here are a few different medical loan options for you to pursue:
- Unsecured Personal Loan - personal loans can offer low-risk, low-cost access to funds. Because many different financial institutions extend personal loans, you can shop around for the best rate, and since these types of loans are not connected to your home or other assets, you won’t face foreclosure in the event you are late on payments.
- In-house Financing - many medical providers have in-house financing for patients. Be sure to check the interest rates and terms before selecting this option, as they can be higher than larger, more connected lenders.
- Personal Line of Credit - this option allows you to pull extra funds when needed against your current financial limits, similar to spending on a credit card when you don’t have the money. Just like with a credit card, this money needs to be paid back within a certain amount of time, so be sure to understand how much you need to borrow.
Medical Loan Tips
When looking for a medical loan, it’s important to fully understand what you are signing up for. Make sure you read through and compare the rates, terms, and any associated fees, so that you aren’t surprised by unexpected costs or repayment plans. Ask your lender questions and don’t agree to terms that make you uncomfortable. Making a smart, informed decision will help you feel confident in your choice, save on medical bills, and help facilitate your medical needs.