Written By: Simran Kaur Vij

Simran Kaur Vij

Health and Term Insurance

Simran is an insurance expert with more than 4 years of experience in the industry. An expert with previous experience in BFSI, Ed-tech, and insurance, she proactively helps her readers stay on par with all the latest Insurance industry developments.

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Reviewed By: Anchita Bhattacharyya

Anchita Bhattacharyya

Health, Term & Life Insurance

Anchita has over 6 years of experience in content marketing, insurance, and healthcare sectors. Her motto to make health and term insurance simple for our readers has proven to make insurance lingos simple and easy to understand by our readers.

Updated on Jun 30, 2025 3 min read

Buy Health Insurance Plans on EMI

Investing in the best health insurance plans is necessary with growing medical inflation. However, paying one-time premiums is not for everyone. Therefore, IRDAI has enabled policyholders to buy health insurance plans through EMI options.

Let us take a look at how EMI works in health insurance

What Is Health Insurance on EMI?

Health insurance on EMI allows policyholders to pay their premiums in manageable monthly installments, rather than a lump sum, making it more affordable and accessible.

traordinary Facts

In 2019, IRDAI mandated health insurance providers in India to offer flexible premium payment options to expand health insurance accessibility. This facility helps individuals who are concerned about upfront premiums. Policyholders can now opt for monthly installments, reducing financial strain.

How Does Health Insurance on EMI Work?

Health insurance in EMI has a simple mechanism. Let us understand below:

Let us consider Akash has a monthly income of INR 70,000. He purchases a health plan with annual premiums of INR 30,000. He is concerned that paying premiums upfront annually will strain his finances so he opts for health insurance premium payment in EMI.

With the EMI option, Akash must pay INR 2,500 monthly, ensuring health coverage and a balanced budget. You can pay these monthly installments online using credit cards, debit cards, UPI IDs, and net banking.

Why Buy Health Insurance on EMI?

Below are some reasons why you must opt for health insurance on EMI.

• Better financial planning for policyholders, the EMI option in health insurance helps you to plan your budget smartly.
• EMI in health insurance plans is a good option if you want to keep health insurance expenses minimal.
• If you want to opt for a higher sum insured option, select the EMI option for your health policy.
• For senior citizens with a pension, investing in a health insurance policy with EMI payment options is the best choice.
• If you are looking for increased affordability, EMI in health insurance is the right choice for you.

Benefits of Buying Health Insurance on EMI

There are multiple advantages associated with purchasing health insurance on EMI.

• Increased Insurance Penetration

  With EMI options in health insurance plans, the awareness around insurance has increased. Affordable health plans will further overall insurance penetration in the country. Furthermore, a large population can avail the benefits of health insurance features and get access to the best healthcare in the country.

• Affordable Comprehensive Cover

  With monthly installment options in your health policy, you can avail of comprehensive coverage at affordable premiums. The monthly payment option helps low-income families to avail the best health plans available in the market.

• Tax Benefits

  Under section 80D of the Income Tax Act of 1961, health insurance premiums paid in monthly installments are also eligible for tax benefits. Tax deductions will vary for individuals as per their age.

• Helps Fight Medical Inflation

  With growing medical inflation, investing in a high-sum insured health plan that covers you and your family against medical expenses is mandatory. With monthly EMI installments, you can avail of high coverage at minimal premiums, shielding you against the ever-rising medical inflation.

• Ideal for Senior Citizens

  For those who rely on government pensions, paying monthly installments for health insurance is the best way to safeguard your finances in the long term.

What are the Documents Required for Health Insurance on EMI?

To buy the best health insurance plans on EMI, you will need the following documents:

• Identity proof like Aadhaar, Voter ID, etc.
• Address proof like utility bills, Aadhaar card
• Medical reports, if required

Factors to Consider When Buying Health Insurance on EMI?

Ensure you look at the following factors when buying health insurance on EMI:

• Consider EMI options for your health plan, such as a no-cost EMI option.
• Select monthly installment tenures for your health insurance premiums that align with your financial situation.
• Ensure your health insurance plan offers you comprehensive coverage with benefits like pre and post-hospitalization, ambulance cover, AYUSH cover, daycare treatment cover, and more.
• If you will be paying EMI for health insurance premiums through your credit card, make sure you make timely payments and do not ruin your credit score.
• Read policy terms and conditions carefully, and find out if there are any co-payments or deductibles included in your health plan.

Factors Affecting Health Insurance Premiums

The factors that affect your health insurance premiums are:

• Age
• Medical conditions
• Pre-existing conditions
• Type of policy, like individual, family, etc.
• Policy tenure
• City of residence, etc.

EMI Vs. Lump Sum Payment: The Better Option?

Let us compare the monthly installments and lump sum payment methods below.

Conclusion

Paying health insurance premiums as EMI installments eases the financial burden overall. However, some factors must be considered before choosing the monthly installment option in health insurance. Processing fee and interest charges must be considered, policy tenure for which EMI payments are acceptable, and others. The EMI option in health insurance allows you to make large premium payments without feeling the financial strain.

To find out about health plans with EMI options, talk to health insurance experts at PolicyX.

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