The medical facilities are expanding daily, resulting in sky-high prices for medical treatments during times of illness. Furthermore, a major medical procedure can drain your bank account. Thus, health insurance can protect you in times of emergency and safeguard your finances. To make the health insurance plans more affordable, the Insurance Regulatory and Development Authority of India (IRDAI) asked the insurers to offer policyholders other payment options, such as EMI, in addition to annual payments.
Why Was the Provision of EMI on Premiums of Health Insurance Plans Introduced by IRDAI?
Many people know health insurance benefits but avoid buying one because of the annual payments that remain big in absolute number. Thus, they miss out on financial protection in the face of medical emergencies. To make it accessible to everyone, the IRDAI asked health insurance providers to introduce EMI options that allow policyholders to pay monthly premiums, decreasing the financial burden on the lower-income group.
Reasons for Making Health Insurance on EMIs a Good Call
These days buying health insurance is crucial. According to recent surveys, we can say that health-related issues like illness, heart disease or sudden deaths have occurred quite frequently. Medical facilities have also been improving and so do the treatment costs. With an option to pay policy premiums on EMI, purchasing a health insurance policy for all income groups is more accessible. This facility is also favourable for upper-middle-class people as now they no longer need to pay the entire premium at once but at monthly installments. Some insurers may allow you to pay EMIs quarterly and half-yearly too. This provision also includes paying the premiums online with an auto debiting option, so you don’t have to remember the payment dates.
Advantages of Buying Health Insurance on EMIs
Let us understand why paying health insurance premiums on EMI is a good option.
- Accessible and Affordable: Buying health insurance with the convenience of EMI makes it easier for people living in smaller towns and villages to invest in such policies. Even people living in cities with no fixed source of income or retired people who find it challenging to pay can benefit from EMI schemes.
- Increase in Health Issues and Lifestyle Changes: People usually have desk jobs, one reason for low physical activities in their daily routine. This set the scene for many life-threatening disorders like cardiovascular diseases, diabetes, etc. To prevent a financial crisis in case of any mishap, it is advisable to buy family floater health insurance so that you and your family have a secured future. This could be expensive for some people; therefore, paying the premiums on EMI is beneficial.
- Increasing Medical Costs: We have seen advancements in the medical field as scientists come forward with many possible treatments for various diseases. As a result, medical treatments, hospitalisation and critical care have become costly. With the advantage of premium payment on EMI, you can experience financial support.
- Higher Coverage: Now, as the policyholders have an option to pay premiums in installments, they can opt for higher coverage and get the benefits of high-quality treatments without any extra financial pressure.
- Tax Benefits: Policyholders who pay premiums in installments can claim tax deductions on the amount they pay monthly, under the Income Tax Act's section 80D.
- Online Payments: Digitalisation is a convenience that helps you buy health insurance and pay your premiums online without extra effort. You can also choose to opt for auto debit of your insurance’s premiums, with the help of which the amount will be deducted automatically from your account on the decided date.
- Convenient for Senior Citizens: With the option to pay premiums in installments, senior citizens can enjoy health insurance benefits without any financial burden. They can buy the insurance with their limited monthly pension or income.
Choosing the Right Health Insurance Policy for EMIs
Many insurers provide health insurance monthly payment facilities, and it could not be easy to choose which health insurance is best for you. Some factors to help you find a health insurance policy that works best for you are:
- No-cost EMI: While choosing the insurance policy, look for the no-cost EMI option so that you are not charged interest on the installments paid. This facility will make your premiums less expensive.
- Coverage: Check the policy’s coverage if you opt for no-cost EMI. Make sure to study if your family is also covered or not.
- Exclusions: The exclusions are listed and should be referred to by the policyholder.
- Customer Services: Make sure you survey customer care reviews in settling claims and solving issues. Some insurers include Star Health, Aditya Birla, Reliance, Future Generali, etc. If you are willing to calculate the premium for health insurance, you can check online using a health insurance premium calculator.
Conclusion
Almost all the policyholders in India have welcomed the new provision of buying health insurance on monthly premiums. This option makes the policy affordable and accessible to everyone, a boon to lower-income groups and people living in the country’s smaller towns. The number of health insurance consumers has increased greatly. It benefits everyone wanting to secure their and their family’s future. However, checking the plans and offers and comparing them with your requirements is advisable.
