Health Insurance Premium in EMI Installments
Almost everything nowadays has the option of part-payments or an EMI. The majority of the time, consumers choose EMI payments because it does not put a financial burden on them. Health insurance is also available on EMI now, allowing you to pay the hefty premiums in affordable installments.
Having health insurance has become a necessity amid the current Coronavirus outbreak. With the number of positive cases rising by the day, an increasing number of people are at the risk of contracting the virus. Hospitalization caused by the Coronavirus can result in significant medical costs, so, a Health Insurance policy has become essential.
Although a large number of people have recognized the importance of health insurance, many of them are finding it difficult to afford the premiums since COVID has had such a severe economic impact. Job losses, salary cuts, and company uncertainty are only a few of the pandemic's severe economic consequences.
Why Has the Provision Been Introduced by the Authority?
The basic objective behind this provision is to make Health Insurance more affordable so that, the people who are not able to afford Health Insurance because of the lump sum premium amount can pay them on a monthly, quarterly, or half-yearly basis.
Due to this, insurance companies have started to accept premium payments in the form of monthly installments, or EMIs. The IRDA has also mandated that all insurance companies are to accept monthly premium payments.
Reasons to Buy Health Insurance on Installments
Here's how we think paying monthly insurance installments can help you:
- You'll be able to purchase health insurance (whether you belong to a small town or an urban city). However, it is certain to benefit small-town residents as it will be far less expensive this way.
- People who live in cities will get benefits because they will be able to pay monthly premiums from their earnings. In addition to this, it provides a fantastic chance for the insurance business to grow in major cities.
- You may now find health insurance online, you can also pay your premiums via safe online portals and also set up an automatic deduction of premiums from your account directly. You won't miss any installments this way.
- With the insurance sector thriving, it will be able to provide a diverse range of insurance products to the public. It will not only benefit the industry but will also improve customer service and the claim procedure.
Why Paying Health Insurance Premium On EMI Is a Good Idea?
Let us look at how paying a premium on an EMI can be a beneficial option:
- Costly Healthcare Treatment: Treatment and hospitalization costs have risen due to advancements in medical science. It will be easier to financially support yourself in covering healthcare expenses with a best health insurance Plan because premium payments can be made on an installment basis.
- Choose Higher Coverage: Policyholders who have the option of paying their premiums in installments can now choose a higher level of coverage without having to pay the entire premium amount at once. Individuals no longer have to sacrifice quality treatment as the benefits can be availed by paying the premium in installments.
- Cover for Self and Other Family Members: Health emergencies do not come with a warning. However, you may now protect your entire family without worrying about paying a large premium as it can now be paid on a monthly or quarterly basis.
- Increase in Health Issues: The majority of people now-a-days lead sedentary lifestyles and have adopted bad eating habits. There is a rise in the number of lifestyle-related and cardiovascular diseases such as cancer, kidney failure, and diabetes. You can now simply obtain Health Insurance Policies for any of the mentioned illnesses, including health coverage for Coronavirus, by paying the payment in monthly or quarterly installments.
- Tax Benefits: A policyholder can get tax benefits on premiums paid in installments under section 80 D of the income tax act.
A Few Things to Check
Though paying premiums in installments is advantageous to you, there are a few things you should be aware of:
- Some companies may impose a loading amount on monthly or quarterly premiums while offering annual premium savings. If the yearly premium for a policy is INR 10,000, you may be required to pay INR 900 every month if you choose the monthly premium option. If the annual premium is INR 12,000 and the monthly premium is INR 1000, you may be able to save money by paying the premium annually.
- If you pay premiums in installments and a claim occurs before the entire premium payment is made, you have two options. You'll need to pay the outstanding premium before the insurance company settles your claim or if you do not pay the outstanding premium, the insurance company can deduct the premium from the claim amount. Let’s take an example, if you pay a monthly premium of INR 900 and a claim occurs in the sixth month, you can pay INR 5400 and receive the entire claim amount, or the insurance company will subtract INR 5400 from the claim amount payable.
- In the current circumstances, when the pandemic has produced economic disturbance, the facility of installment premium is being offered. Depending on the insurance company's policies, the facility may be continued or discontinued in the future.
EMI payments are preferable for the customers who can make big purchases and pay for them in small affordable installments later. As a result, the option of paying your premiums in installments is advantageous to you because you may afford a higher level of coverage and invest in a complete health insurance plan. Choose this facility at your convenience, you can pay the premium in one lump sum or go for an annual premium. So, make a sound choice, but don't forget to invest in health insurance for financial stability during the uncertain time like this.
Last Updated : March, 2022