Can health insurance be bought through an EMI plan?
EMI health insurance refers to paying your health insurance premiums in equated monthly instalments (EMIs) instead of a lump sum, thus making it an affordable and manageable payment choice. Health insurance on EMI (Equated Monthly Installment) permits the policyholders to pay their premiums in manageable instalments, which makes it more accessible. There are many EMI health insurance providers in India that offer EMI (Equated Monthly Installment) options for premium payments.
Health insurance on EMI is advantageous as it makes premiums affordable by helping individuals access comprehensive health coverage without the burden of a large upfront payment. Thus, it enables them to opt for higher coverage without a large burden. Health insurance EMI options offer advantages like affordability, convenience, access to higher coverage, continuous coverage, financial planning, and tax benefits.
To Enrol in an EMI payment plan, you must provide primary information, like your name, contact details, and financial details, to the insurance company from which you buy your plan. The insurance company will use these details to find your EMI payment plan eligibility and calculate the EMI amount.
A health insurance on EMI without credit card serves to be a better choice to people who can’t afford to pay the premium upfront. Health insurance on EMI is a cost-effective choice that provide financial security and stability at the time of the medical emergencies.
Is it Possible to Buy Health Insurance Via EMI
In 2019, the Insurance Regulatory and Development Authority of India (IRDAI) took a step to enhance the accessibility of health insurance for Indian citizens by requesting health insurance companies to offer policyholders the choice of paying their annual health insurance premiums through EMIs. This initiative empowers individuals to conveniently make regular payments towards their health insurance policy in quarterly, or half-yearly instalments.
Health Insurance on EMI
Health insurance policies in India offer EMI payment options that provide the convenience of paying the policy premium in equal instalments instead of a lump sum. The duration of the EMI payment period may vary depending on the policy, but it is typically set at 12 months.
It is advisable to review the terms and conditions of the EMI payment plan carefully before enrolling to comprehend the associated costs.
Advantages of buying a health Insurance policy through EMI
Enhances affordability
Insurance becomes more accessible to urban dwellers and those residing in rural areas by offering the EMI option. Opting for insurance on an EMI basis proved to be more cost-effective and advantageous for them. This is because it eliminates the need to make a large upfront payment, allowing individuals to maintain a balanced monthly budget while ensuring financial security during challenging times.
Enhanced coverage
People are gradually gravitating towards high-sum insured plans, which can now be easily afforded with the availability of the EMI option. You no longer have to compromise on getting quality treatment, as the benefits can be received by paying the premium in installments.
Beneficial for senior citizens
Insurance can be costly, especially as individuals age. Senior citizens are advised to consider obtaining personal medical insurance due to their increased susceptibility to illnesses and other primary health conditions.
However, In such cases, opting for an EMI plan can be an advantageous and affordable alternative for those with limited monthly income. With pocket-friendly health insurance EMIs, senior citizens can access outstanding medical treatment without the added stress of financial management.
Tax benefits
Under Section 80D of the Indian Income Tax Act, 1961, individuals can get tax benefits by claiming a deduction of up to Rs 1 lakh for the premiums paid as EMIs towards their Medi claim policy.
Comprehensive coverage
Health problems can come unexpectedly and impose a financial strain at any time. However, you can now protect your family without fretting over the premium, as it can be conveniently paid quarterly or half yearly tailored to suit your convenience and budget.
Things to consider
Interest: Many EMI plans carry interest, so look at the total payables.
Risk of Default: Pay an EMI to avoid your policy getting cancelled or penalized.
Eligibility: EMI schemes are usually linked with the amount paid for your policy or your credit score
How do you choose the right health insurance policy on EMI?
EMI
Verify if the insurance company allows payment of premiums in EMIs and review the relevant terms and conditions associated with it.
Policy Features
Thoroughly review the policy features and benefits, which include claim settlement ratios, network hospitals, and more.
During Claims
Premium Payment in Installments: lf the insured person has opted for Payment of Premium on an installment basis i.e. Half Yearly or Quarterly or as mentioned in the policy Schedule/Certificate of Insurance, the following conditions shall apply (notwithstanding any terms contrary elsewhere in the policy).
i. A grace period of 15 days for monthly instalments/quarterly/half-yearly and an annual period of 30 days would be given to pay the instalment premium due for the policy.
ii. During such grace period, coverage will not be available from the due date of installment premium till the date of receipt of premium by Company.
iii. The insured person will get the accrued continuity benefit in respect of the “Waiting Periods“, “Specific Waiting Periods” in the event of payment of premium within the stipulated grace Period.
iv. No interest will be charged lf the installment premium is not paid on due date.
v. In case of installment premium due not received within the grace period, the policy will get cancelled.
vi. In the event of a claim, all subsequent premium installments shall immediately become due and payable.
vii. The company has the right to recover and deduct all the pending installments from the claim amount due under the policy.
Payment selection: Select EMI as the preferred payment option at checkout.
Credit Card/Loan: To facilitate quicker processing, ensure that your credit card is tied up with the insurance company's lender.
Conclusion
The availability of monthly EMIs in a country like India, where health insurance affordability is a concern, is a significant advantage. This option empowers individuals to access comprehensive healthcare coverage that may have been previously unattainable for them.
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The information provided on this page is for general informational purposes only. Availability and terms of health insurance plans may vary based on geographic location and other factors. Consult a licensed insurance agent or professional for specific advice. T&C Apply.