How to Buy Health Insurance on EMI

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Health Insurance on EMI 

There are various health insurance EMI 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. 

Health insurance with EMI facility is becoming a popular choice for budget-conscious families. It is advisable to review the terms and conditions of the EMI payment plan carefully before enrolling to comprehend the associated costs. 

Is it Possible to Buy Health Insurance on 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. With rising healthcare costs, many individuals are now opting to buy health insurance on EMI to ease their financial burden.

Advantages of buying a health Insurance policy through EMI

Choosing a health insurance EMI plan allows you to spread your premium payments over time.

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. You can buy health insurance on EMI even if you don’t have a credit card.

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 instalments.

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 Mediclaim 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. 

Essential Documents for Health Insurance on EMI

If you’re planning to purchase health insurance on EMI, you’ll need to keep certain documents ready for a smooth process. Here’s the complete list:

• Identity Proof – Aadhaar card, passport, driving license, or any government-issued ID.
• Address Proof – Aadhaar card, passport, utility bills, or other valid documents. 
• Income Proof – Recent salary slips, bank statements, or income tax returns.
• Medical Records – Latest health check-up reports or medical history documents.
• Filled Proposal Form – The application form provided by the insurer.

Having these documents handy ensures quick approval and hassle-free processing of your health insurance policy with EMI option.

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 penalised

Eligibility: EMI schemes are usually linked with the amount paid for your policy or your credit score

Health Insurance on EMI vs Lump Sum: Key Differences

Below is the comparison between buying health insurance on EMI and buying through paying a Lump sum.

How do you choose the right health insurance policy on EMI?

• EMI: To get started, select your preferred EMI health insurance plan and choose the instalment option at checkout. 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.  
• Premium Payment in Instalments: If the insured person has opted for Payment of Premium on an instalment basis, i.e. Half Yearly, or Quarterly, or as mentioned in the policy Schedule/Certificate of Insurance, the following conditions shall apply (not withstanding any terms contrary elsewhere in the policy).
• During such a grace period, the policy is considered to be in force, and the risk cover continues without any interruption as per the terms and conditions of the policy.
• 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.
• No interest will be charged if the instalment premium is not paid on the due date.
• In case of instalment premium not received within the grace period, the policy will be cancelled.
• In the event of a claim, all subsequent premium instalments shall immediately become due and payable.
• The company has the right to recover and deduct all the pending instalments 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.

How Is Health Insurance Premium Calculated for EMI Payments?

Wondering how to calculate health insurance premium when paying in EMIs? The premium amount depends on several factors, including:

• Age of the insured
• Sum insured
• Type of health insurance plan
• City of residence
• Lifestyle habits
• Gender

To make it easier, you can use an online health insurance premium calculator available on trusted platforms like Policybazaar.com. Simply enter:

• Your city of residence
• Family members to be covered
• Age of the eldest member
• Desired sum insured

The calculator will instantly show the monthly premium for various mediclaim policies, helping you choose the best plan that fits your budget.

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.