Medical care gets expensive every year. It is simply because healthcare inflation in the country beats the standard inflation year after year. Thus, a procedure that someone did a couple of years back will cost more today. This makes for an even stronger case to buy health insurance.
However, a hefty health insurance premium can be a bit difficult to pay at a time. This is the reason that in 2019 IRDAI discussed with insurance providers to offer an additional payment schedule for health insurance in the form of EMIs.
EMIs ensure that you can pay a small amount towards your health insurance every month. This allows you complete peace of mind, since you have the required coverage and without paying the one-time premium.
Need for Health Insurance EMIs
A lot of individuals in the country do not have any form of health insurance plan with them. One of the primary reasons for the same is the hefty annual premium. To resolve this issue and to make health insurance plans more accessible, the IRDAI decided to introduce EMIs for health insurance plans. If you want to buy the plan and do not want to pay the premium in a single go, you can opt for EMIs.
Top Reasons to Opt for Health Insurance EMIs
People who found it difficult to pay for their health insurance premiums as a lump sum amount can now consider paying it in easy installments. Here are the top reasons to do so.
- People in urban areas will get another option to pay their policy premiums. The option of paying smaller EMIs over a lumpsum amount might help more people come on board with health insurance plans.
- Given the ongoing pandemic, it makes a lot of sense to opt for a health insurance plan. And what is better than buying the plan in easy installments? Another advantage is that you can pay the EMIs online, which makes them even more convenient. Also, you can set up an auto debit feature, which allows the insurance provider to debit the installment amount from your account. And you do not have to worry about missing EMIs.
- People living in rural areas are still some distance off from buying health insurance plans. With the introduction of EMIs, the policy might just become more accessible and affordable for them.
- EMIs in health insurance plans are set to help insurance providers as well as policy buyers in the long run.
Is It a Good Idea to Buy Insurance on EMIs?
Statistics show that between April and August, about 11% of all the claims were related to Covid-19. And given the expensive care during the pandemic, a lot more people are inclined toward buying health insurance plans. And its availability on EMIs just makes things a little bit better. Here is why it might be a good idea to buy insurance on EMIs.
- Higher Coverage
One of the biggest advantages of the introduction of EMIs is that you can not afford a policy with higher coverage. Since you no longer have to pay the premium in one go, you can afford a policy with higher coverage and policy premium.
The presence of installments ensures that you no longer have to compromise on the policy that you buy or the treatment that you receive. Also, premiums for younger applicants are lower than for senior citizens, making it a bit more affordable.
- Higher Number of Health Issues
A sedentary lifestyle combined with bad eating habits means that there is a significant increase in the number of critical illnesses and lifestyle-related diseases. Health conditions such as diabetes, renal failure, cardiovascular issues, cancer, etc. are quite common these days. Paying policy in installments ensures that you get adequate coverage for the above health hazards, including the ongoing coronavirus.
- Better Access for Senior Citizens
The option of paying a small amount every month makes health insurance plans more accessible to senior citizens. They no longer need to pay the policy premiums at go. This will help them reduce the burden on their pension or income.
- Get Cover for Family
Health-related issues can put the finances of anyone to the test. With easy and accessible installments, you can choose to buy health insurance plans for the entire family. You can either opt for regular monthly installments or quarterly payments, depending on your budget and needs.
- Costly Medical Treatments
Healthcare now has access to better technology. This invariably results in a higher healthcare expense, for treatment as well as hospitalisation. Thus, the presence of EMIs makes it that much easier for everyone to afford a health insurance plan.
- Tax Benefits
Regardless of which payment method you use, you can benefit from tax exemptions under Section 80D of the Income Tax Act. An individual can get maximum tax benefits of up to INR 1,00,000 on health insurance premiums.
Calculation of Health Insurance Premium
Health Insurance providers would need the following information to be able to calculate the health insurance premium for your plan.
- The health insurance plan that you select
- The type of coverage that you seek
- The sum insured by the policy
- Your city of residence
- Total number of family members insured
- Age of all the family members
A major advantage of buying online health insurance is that you can make use of online premium calculators. You would need the following information to determine the policy premium.
- Term of the policy
- Gender of applicant
- Sum insured of the policy
- DOB or PAN of the applicant
- Coverage that you opt for
Read more - A Step By Step Guide to Paying Health Insurance Premium Online
Conclusion
To start with, you can buy health insurance online and save money on policy premiums. When you buy online, you can compare health insurance from different vendors and choose a policy with better coverage and premium. And with the availability of EMIs for policy premiums, health plans have become much more affordable. You can even buy a plan with better coverage since the lower installment amounts make it more accessible.
Read more - Changes to Health Insurance Laws Over Time
