Health Insurance on EMI

To make medical insurance more affordable, IRDAI in 2019 asked the insurance providers to offer additional premium payment frequencies by filing minor modifications in the existing policies. With the possibility of paying for health insurance premiums through EMIs, you can pay a set amount each month to your Mediclaim policy. You can enjoy tranquillity without worrying about the cost of producing a substantial annual premium. So, paying health insurance premiums in EMI is an intelligent choice.

What was the reason for this provision to be introduced by IRDAI?

Most people living in India don't have insurance for medical expenses. The reason is the need to pay for the premium immediately, which could be a financial burden. The goal is to increase the accessibility of health insurance and affordable. In addition, those unable to cover the annual cost can pay for the premium through EMIs.

Reasons to Buy Health Insurance on EMI

The people who were unable to pay the cost in one lump sum should now consider paying the premium for health insurance in monthly EMI due to one of the reasons listed below:

• Until now, people living in small towns, particularly rural areas, are away from health insurance coverage. Settling EMI is expected to be much less expensive and more accessible to them.
• Urban populations are likely to gain from this program, as many people prefer to pay the amount in EMI rather than the whole amount in one lump sum.
• The inclusion of premiums for health insurance in EMI will benefit the insurance company and policyholders over the long run.

Why is it a Good Idea to Pay Health Insurance Premiums on EMI?

In the Apr-Aug quarter, 11% of medical insurance claims alone came to COVID related this year. With increasing numbers of customers looking to purchase health insurance online in the face of the current pandemic and rising costs, paying the premium via EMI can make it simpler for them to get an insurance policy.

Consider why paying your policy premium in monthly EMI could be an excellent method.

• Rise in Health-related Problems: Due to a sedentary lifestyle and unhealthy eating habits, there is a significant rise in lifestyle diseases and critical illnesses like cardiovascular ailments, diabetes, cancer, kidney failure, etc. Even if you pay your policy premium in EMI, you will receive coverage for hospitalizations related to these illnesses, including the treatment for Coronavirus.

• High-cost Medical Treatments: Due to technological advancements in medicine, the expense of hospitalization and medical treatments has risen to a high level. With a simple EMI premium payment, it's more affordable to cover medical costs through health insurance policies.
• Choose a Higher Coverage amount: The flexibility to pay the premium in EMI makes it more convenient for those who apply to get more significant coverage without having to pay for the premium in one lump sum. There is no need to sacrifice the quality of the benefits of the treatment since you can enjoy the benefits when you pay the cost in EMI. The price for young applicants will be lower in comparison to seniors.
• Insurance for family and self: Health issues do not always come with notice and could cause a financial burden on anyone at any time. However, you can now protect your family members without stressing about the cost because it is paid monthly or quarterly according to your needs and budget.
• Easy to purchase Health Insurance for Senior Citizens: With the option to pay the premium each month, senior citizens are no longer required to compromise their health since they can now cover health insurance even with a small monthly pension or income without feeling that financial strain.
• Tax Exemption Benefits: The amount paid in EMI is qualified to receive taxes benefits under section 80D under the Income Tax Act of 1961.

How to Calculate Premiums for Health Insurance?

The details needed for calculating the cost of medical insurance is listed below.

• Sum Insured Amount
• Selected Health Insurance Plan
• Type of Policy Coverage
• Family Members Insured
• Age of the Insured Family Members
• City of Residence

But you can also use an online health price calculator to estimate the cost of the premium. All you have to do is enter the following details-

• Personal information- - DOB or PAN numbers
• Gender
• Policy Term
• Sum Insured
• Protection for self, family, or spouse
• Then click to download the health insurance quote.

 

Sum Insured Option (in Rs. )

Members to be Insured

Monthly Premium Exc. Taxes

 

3 Lakh

Self

Rs 445 (approx.)

 

5 Lakh

Self + Spouse

Rs 852 (approx.)

 

Rs 7.5 Lakh

Self + Spouse + 1 Child

Rs 1170 (approx.)

 

Rs 10 Lakh

Self + Spouse + 2 Children

Rs 1462 (approx.)

 

 Sample Table for Health Insurance Premium Paid in EMI's

The premium listed is not subject to GST for individuals under 35 years old from Tier 2 cities. The table above is only for reference purposes; the cost varies depending on the insurance company and the type of health insurance policy purchased.

1. The filing of a Health Insurance Claim before paying Medical Insurance for the entire policy Period

In other words, if you're paying the monthly premium and you have to submit a claim within six months of paying the premium, the insurance company will begin processing your claim. But, it could reduce the balance of the EMI, or you'll have to pay the outstanding premium to receive claim benefits. In simple terms, it won't influence the claim process.

2. Changing the Mode of Premium Payment in the Existing Medical Insurance Plan

The policyholders can change the method of paying premiums during renewal. However, it's impossible to alter the payment method during the interim. People who plan to use a new way of payment for premiums will need to indicate that on the form for policy renewal when renewing.

3. Premium Cost on Opting for EMI Paying Facility

The basic premium cost stays the same if you select the monthly, quarterly, or half-yearly option for premium payments. Certain insurers may have a higher cost depending on the insurance company and the kind of insurance.

4. The Free-look Period on Opting for EMI Facility

Most health insurance plans offer an opportunity to look at the policy for free for 15 days from the date of policy start. The policyholder can cancel the policy without penalty if they opt for the annual premium payment option. If you choose to pay for your premium through EMIs, i.e., monthly, quarterly, semi-annually, or quarterly, the insurance company may end the free-look time.

A Brief Summary

India's policyholders appreciated the ability to pay their health insurance premiums in EMI. Since the EMI option was revealed, health insurance has become more affordable for lower-income groups. We have seen a substantial increase in the number of policy customers.