The Basics of Medical Loans
Thursday, April 24th, 2008
There is little more stressful than finding yourself in need of medical care that you cannot afford. Those without health insurance are always at risk of experiencing this situation. Even people who have good health insurance often find themselves facing high deductibles for hospital stays or reaching their limits of liability if they have chronic illnesses that require expensive care.
What Are Medical Loans?
People in need of medical care who do not have sufficient insurance or cash reserves to take care of their expenses often seek medical loans to pay for the treatments they need. A number of lenders offer medical loan programs. These types of loans are typically unsecured personal loans designated to be used specifically for medically necessary or elective medical procedures.
Applying for Medical Loans
Because medical loans represent unsecured debt, approval is based on creditworthiness. Interest rates vary from lender to lender, but don’t fluctuate significantly from the going market rate for unsecured debt. Since the money is earmarked to fund medical treatment, some medical loan programs allow a recovery time grace period before repayment must begin.
If you’re interested in applying for a medical loan, it’s a good idea to ask the staff at your doctor’s office for a referral to a lender. Many clinics have relationships with lenders, and may even have literature or application forms available for patients. If you are not able to qualify for a medical on your own, it may be possible to reapply with a creditworthy co-borrower, depending on the lender’s policies.
Using Medical Loans?
People utilize medical loans to help fund all types of medical procedures and treatments. Many people use the proceeds from medical loans to fund dental surgery, Lasik vision repair surgery, liposuction, and facial cosmetic surgery procedures not covered by insurance.
Others seek medical loans to fill in gaps in medical insurance coverage or to fund additional treatments upon reaching the limits of liability on their health insurance policies. For individuals who need medical treatment to recover from serious illnesses or accidents, medical loans can literally save their lives. It’s good to know that there are options for funding medical procedures not covered by insurance.