Mevish Jaffer
It’s common for individuals who lack health insurance to utilize personal loans in order to pay off their doctor’s bills, or to finance different types of elective treatments which may not be covered by the National Helath Service. Even those with health insurance may require additional financing options due to inadequate coverage. In today’s lending industry, medical loans are becoming the popular alternative when it comes to filling in these financial gaps. This is because a medical loan is specifically customized to meet the needs of individuals who require funds for different kinds of medical procedures. They can be availed in one of two ways; a secured medical loan or an unsecured medical loan. The loan itself can also be used towards many types of medical and elective procedures, including plastic surgery financing.
Medical Procedures Covered By Medical Loans
There are several lenders that provide individuals with this type of financing based on their need for both medical and elective medical procedures. In many cases, a medical loan is the only hope for those who require medical treatment, but don’t have health insurance, or are unable to pay their deductible. Additionally, medical loans can assist chronic illness sufferers to receive continued treatment once their coverage has been depleted.
As previously mentioned, a medical loan can also be sought for elective procedures, which is why they are sometimes referred to as plastic surgery loans. Most health insurance companies do not provide coverage for any type of treatment that is deemed “medically unnecessary.” However, a medical loan can be used as financing for plastic surgery. The following are some specific cosmetic procedures that a medical loan can help to pay for:
- Gastric bypass surgery
- Liposuction
- Dental cosmetic surgery
- Breast augmentation surgery
Secured vs. Unsecured Medical Loans
There are different types of medical loans that can be availed and should be considered by borrowers based on their individual needs. For example, some characteristics of an unsecured medical loan include the following:
- Do not provide high loan amounts
- Better suited for financing smaller plastic surgery loans (Botox, nose jobs etc.)
- Higher interest rates (but generally lower than credit cards)
A secured medical loan on the other hand, is somewhat different. Borrowers who require higher cost surgeries or cosmetic procedures usually opt for secured medical loans. Interest rates are typically lower, and because collateral is required, the money which can be obtained is significantly higher than unsecured medical loans.
Where to Secure Medical Loans & Financial Assistance
Whether needed for medical treatments or desired for plastic surgery financing, a medical loan can be sought from several sources. One of the first places that most people seek financial assistance is through their doctor’s office. This is because many physicians’ offices can offer individuals guidance when it comes to finding reputable financial companies that offer medical loans. Although the amount that is granted varies from company to company, most financial institutions tend to grant medical loan amounts ranging from $1,000 - $25,000. The repayment terms attached to these loans are usually between 24 to 60 months.
It’s also possible for individuals to get financial assistance directly from the doctor or plastic surgery clinic through a payment plan. For example, some physicians and clinics allow patients to pay for part of their medical or elective surgical procedure up-front, and then proceed to pay off the remaining balance after completion. Others may allow patients to undergo treatment or surgery first, and make payments later. As with any other type of financial loan, it’s important for borrowers to understand the entire scope of the loan agreement before signing anything and agreeing to pay. This includes the rates and terms of repayment and the exact costs associated with the amount being borrowed.
[page updated December 2008]