What is Health Insurance EMI and How Does it work?

Medical insurance coverage is a necessity in today’s day and age. With the ever-increasing cost of healthcare treatment, any minor medical procedure can easily eat-up your contingency fund. On the other hand, a major medical procedure can burn a hole in your pocket and further lead you into a debt-trap. Thus, having a health insurance plan helps safeguard your finances as well as seek timely medical attention. However, not every individual in India has a medical insurance cover. To make health insurance plans more affordable, the Insurance Regulatory and Development Authority of India (IRDAI), asked the insurance companies to offer other payment options to policyholders apart from annual payments. Thus, this additional payment interval enables you to opt for EMI health insurance and makes insurance more accessible to lower-income groups. What otherwise seemed like a financial burden for some paying the premium at once, has now become convenient with the availability of health insurance on EMI.

Reasons to Buy Health Insurance on Installments

There is an increasing number of instances of health ailments catching up fast among the urban population. Certain lifestyle-related diseases are seen to grip even the rural population for which no appropriate treatment is sought due to high treatment cost. With the facility to pay the premium on EMI, health insurance has become affordable for all income groups. This facility not only benefits a particular class, but in general for all insurance buyers. Now you no longer need to worry about paying the entire premium at once, but instead in equated instalments which can be either monthly, quarterly, or half-yearly depending on your insurance company. Buying health insurance on EMI combined with the facility to buy online helps you follow social distancing norms when dealing with the pandemic. Further, this facility of buying on EMI, health insurance premiums can also be auto debited from your account without having you to remember the payment dates.

Pros of buying health insurance on EMI

Now that you know what makes buying health insurance on EMI a success, let us look at some other advantages that you can get -

Increasing health-related problems

The modern-day lifestyle is more sedentary in nature which paves the way for various lifestyle-related diseases. The reduced physical activity among the working strata gives rise to critical ailments like cardiovascular diseases, diabetes, cancers of different intensity and even organ failures. Purchasing a family health insurance is the safest way to secure your family’s future. But everyone cannot bear the hefty insurance premium rates. Thus, providing the option to split the premium into smaller sums in the form of health insurance on EMI benefits a larger group of people.

Soaring treatment costs and higher sum insured

Having adequate medical insurance cover to secure you is essential. But a higher sum insured amount translates to a higher premium quote. Paying this insurance premium in a single instalment isn’t feasible for many policyholders. But the facility of health insurance on EMI comes as a boon for such individuals. The same premium when divided into smaller amounts is manageable for many.

Benefits senior citizens

Senior citizens with their limited retirement corpus cannot afford to purchase health insurance having a high premium. But these senior citizens are also the most vulnerable to ailments and thus, require a comprehensive health insurance plan. With the availability of health insurance on EMI, such senior citizens can now opt for medical insurance coverage with their savings.

Managing Expensive Medical Treatments

Advanced medical technology has made treatments more effective but also significantly costlier. With the option to pay premiums in easy instalments, a health insurance policy can help cover these high medical costs without straining your finances.

Coverage for the Entire Family

Health emergencies are unpredictable and can result in unexpected financial strain. By paying premiums monthly or quarterly, you can secure coverage for your family without worrying about the financial impact, making it easier to manage within your budget.

Tax Benefits

Premium payments made in instalments are also eligible for tax deductions under Section 80D of the Income Tax Act, 1961. This benefit makes health insurance more financially appealing while providing essential coverage. These are some of the key benefits of buying health insurance on EMI. If you are someone who cannot manage to pay the entire premium at once, splitting its outflow can help avail the necessary medical coverage, all within your budget. Compute your premiums with the online health insurance premium calculator.

Key Points to Consider When Paying Health Insurance Premiums in EMIs

1. Filing a Claim Before Completing the Policy Term Premium Payments

If you file a claim before completing all your EMI payments, the insurer will process your claim. However, they may deduct the remaining instalments from your claim amount, or you may need to pay the outstanding premium to avail the claim benefits. This process does not affect the overall claim procedure.

2. Changing the Premium Payment Mode

You can modify the premium payment mode (e.g., switching from annual to monthly payments) only during the policy renewal period. Changes cannot be made mid-term. To opt for a different payment frequency, ensure it is specified at the time of renewal.

3. Impact of EMI Option on Premium Cost

Typically, the basic premium remains the same regardless of whether you choose to pay annually, quarterly, or monthly. However, some insurers may apply a slightly higher premium for instalment-based payments, depending on the plan and provider.

4. Free-Look Period with EMI Payments

Most health insurance policies offer a 30-day free-look period when premiums are paid annually. However, if you opt for EMI payments (monthly, quarterly, or half-yearly), the free-look period may be reduced by the insurer. Also Read: Health Benefits of Tulsi Leaves

Reasons to Opt for Health Insurance on EMI

Paying health insurance premiums in monthly instalments offers a flexible and affordable alternative to lump-sum payments. Here’s why it’s a beneficial option:

1. Accessibility for Rural Areas

Individuals in small towns and rural regions often find health insurance unaffordable due to high upfront costs. With the EMI option, health insurance becomes more accessible and budget-friendly, encouraging wider adoption.

2. Convenience for Urban Dwellers

Urban residents, too, benefit from this feature as many find it easier to manage monthly instalments rather than paying the entire premium at once. This option aligns well with their financial planning and monthly budgets.

3. Safe and Easy Online Payments

In the wake of the COVID-19 pandemic and the need for social distancing, buying health insurance online has become a safer and more convenient choice. Policyholders can easily pay their instalments online through trusted platforms and even set up automatic deductions to ensure timely payments without any hassle.

4. Mutual Growth for Insurers and Policyholders

This EMI facility supports both insurers and policyholders in the long term by making health insurance more affordable, leading to greater policy penetration and financial security for more individuals. Opting for health insurance on instalments is a smart choice for those looking to secure their health without straining their finances. Also Read: The Exotic Healer: Exploring The Benefits Of Ice Apples

In Conclusion

The EMI option for health insurance premium payments has been widely embraced across India. It makes health insurance more accessible, especially for lower-income groups, leading to a noticeable increase in policy adoption since the introduction of this payment facility.

FAQs

Is There Any Interest on Health Insurance EMI?

Yes, most health insurance policies that offer EMI options come with an interest rate. The interest rate may vary depending on the insurer and the tenure of the EMI plan. Be sure to check the exact terms before opting for the EMI option.

Can I Pay My Health Insurance EMI Online?

Yes, most insurers allow policyholders to pay their health insurance EMI online via their website or mobile app. Payment methods typically include debit/credit cards, net banking, or UPI.

Are There Any Benefits of Paying Health Insurance via EMI?

Paying health insurance via EMI allows you to break down the premium into smaller, more affordable payments, making it easier to manage your finances. It also ensures you maintain continuous coverage without the burden of a large upfront premium payment.

Can I Choose the EMI Tenure for My Health Insurance?

Yes, many insurers offer flexible EMI tenures ranging from 3 to 12 months. You can select a tenure that suits your budget and financial situation. The longer the tenure, the smaller the monthly EMI, but it may come with higher interest costs. *Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.