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. 

You may wonder if you can buy health insurance and pay for it through EMIs. The answer is yes. Many people now prefer health insurance with EMI options because it helps manage expenses more comfortably. Just make sure to go through the terms and conditions of the EMI plan carefully so you understand all associated costs before signing up. 

Before choosing a health insurance EMI plan, compare the total amount payable with the annual premium. Check whether interest, processing fees or other charges apply, and confirm the instalment schedule before completing your purchase. The payment options available may differ depending on the insurer and financing provider.

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. Paying in instalments can make premiums easier to manage. 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. Paying in instalments may help you manage the premium for a suitable sum insured without paying the entire amount upfront. However, compare the policy's coverage, exclusions, waiting periods and other conditions before making a decision.

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. An instalment option may help senior citizens distribute premium payments over time. They should still ensure that the instalments are affordable alongside their regular living and healthcare expenses.

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. Depending on the policy, paying the premium quarterly or half-yearly may help distribute the cost across the year. Review the available payment terms and ensure that the instalments fit your 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.

The exact documents required may vary depending on the insurer and the payment arrangement. A financing partner may request additional information for verification. Confirm the requirements before applying and provide accurate details to avoid unnecessary delays.

How Does EMI Work?

If you choose EMI, your yearly premium is divided into equal payments over a set period, usually each month. This way, you don’t have to pay the whole amount at once.

Example:

For example, if your yearly premium is ₹30,000, you will pay ₹30,000 in a single lump sum if you pay annually. With a 12-month EMI, you pay ₹2,500 each month for the policy term. Taxes and fees, if any, are extra. This way, you can manage your monthly budget and still keep your coverage.

Note: The example above is just to help you understand. Your actual EMI, payment period, and any financing charges (if applicable) will be shown at checkout before you confirm your purchase.

Who Is Eligible for EMI?

To be eligible for EMI, you need to provide basic KYC and financial details. The insurer’s, payment or financing partner may also verify your information. Usually, you pick your plan, choose EMI, select how long you want to pay, and share your bank or income details to finish the process.

Approval depends on the policies of our financing partner or issuer.

Things to consider

Interest: Many EMI plans carry interest, so look at the total payables

Risk of Default: Pay instalments on time and check the applicable grace-period provisions, as missed payments may affect your policy or financing arrangement.

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.

The most suitable payment method depends on your finances and the terms offered. Compare the total amount payable and any additional charges rather than choosing an option based only on the size of the instalment.

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.
• Check the policy wording and financing terms for any charges or consequences associated with delayed payments.
• 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.

Read the policy schedule carefully to understand the grace period, the consequences of missed payments and whether future instalments become due when a claim occurs. The conditions listed above should be checked against the current wording of the specific policy before publication.

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

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. 


Before choosing health insurance on EMI, compare the total payable amount with the lump-sum premium and review the instalment schedule, additional charges and policy conditions. Selecting an option that suits your budget can help you plan premium payments while maintaining appropriate health insurance coverage.


Reader Information: The Section 80D tax benefits discussed are applicable only under the old tax regime, subject to prevailing tax laws and regulations.