Health insurance investment is among your and your family’s most valuable decisions. It is critical considering the rising medical inflation.
However, many individuals may not consider purchasing health insurance due to budget reasons. For those dependent on monthly or fixed incomes, paying the annual premium in a single lump sum may pose a financial challenge.
With the ever-inflating hospital expenses, financial security has become critical to cope with uncalled medical emergencies for individuals and families. Health insurance through the EMI option is a massive sigh of relief. EMI medical insurance offers comprehensive health coverage accessible to a broader demographic.
In this article, we shall discuss the elaborateness of health insurance premiums through EMIs in India, investigating the advantages, factors to consider, and the changing landscape of healthcare financing.
What is EMI?
Equated Monthly Installment, abbreviated as EMI, is a payment alternative allowing you to pay for a product or service in monthly instalments rather than lump sums.
The customer pays a fixed monthly amount based on the total cost of the product or service purchased, the interest rate, and the repayment period.
EMI is a convenient alternative for budget purchases like vehicles, appliances, homes, etc. EMI health insurance works similarly for buyers. The customers pay a certain amount as a monthly premium.
Origin of EMI Medical Insurance
The IRDAI introduced the health insurance EMI option in 2019 to make health insurance plans affordable. The objective was to help individuals who cannot afford the lump-sum amount to buy insurance. This provision also aimed to promote the broader adoption of health insurance among the public. Policyholders can access timely and high-quality healthcare services by opting for a health plan, potentially saving numerous lives.
Hence, it is possible to make payments in fixed amounts at quarterly, monthly, and half-yearly intervals for a health insurance policy.
Why is the health insurance EMI option the best?
The benefits of EMI medical insurance lie in its nature. Let us understand what makes EMI health insurance the best.
- The availability of EMI enhances convenience for salaried individuals. Also, the online payment process is hassle-free. Both aspects have made health insurance individual-friendly.
- Today, medical expenses can bring down your savings in a single transaction. Having health insurance is crucial to receive financial support to cover healthcare costs. The availability of paying health insurance through EMIs makes managing these expenses more feasible for many individuals, providing them with the means to cope with the escalating costs effectively.
- Health risk for senior citizens is high. They also may have a lower monthly income. Therefore, health insurance EMI enables them to access essential health coverage. The health insurance plans help ensure they can undergo treatments without worrying about depleting their savings.
- Even though many policyholders want broader coverage with higher costs, they find it challenging to afford the cost. However, with EMI health insurance, they can opt for coverage without making a one-time payment.
- Even if individuals choose to pay the insurance premiums via EMIs, they can leverage tax benefits under section 80D of the Income Tax Act.
- The dawn of digitalization has enhanced the purchase of health insurance and is evident in the online payment of premiums. Consumers can set up auto-debit for their monthly premiums. Because of this, the monthly premium amount gets automatically paid.
Which is the right policy? Find out how.
With a variety of insurance providers, it could be tough to identify the policy that best suits you. Below are the factors based on which you can best assess the right fit.
- No-cost EMI: No-cost EMI is a feature that ensures an EMI payment without any interest. Check if the policy you’ve chosen comes with interest or not. Doing this can reduce the cost of your premiums to a great extent.
- Coverage: Insurance providers may present various choices for policyholders utilizing the zero-cost EMI feature. Ensure you review the extent of coverage offered by the policy and check whether it adequately covers your family members.
- The Excluded: Exclusions are generally detailed in the insurance policy’s fine print, highlighting situations the health insurance policy will not cover.
- Reviews: Always check customer reviews regarding the insurer’s record for settlement claims. This information will guide you in making a well-informed decision about the health insurance policy that suits your needs.
Frequently Asked Questions
Who should go for EMI-based health insurance plans?
Anyone can pay health insurance premiums through EMI, provided the insurance provider offers this option.
How do you opt for the health insurance EMI option?
Discuss flexible payment options with your insurer when signing up for your health insurance policy. If this feature is available, you can pay your health insurance premium in half-yearly, quarterly, or monthly intervals. The payment process remains consistent with the regular premium amount, allowing offline/online or auto-debit payments from your bank account.
What forms the basis for calculating health insurance premiums on EMI?
The EMI premium depends on various factors, such as:
- The insurance amount
- The type of health insurance plan
- Your city of residence, the medical costs or risks
- Number of family members to insure
- The ages of the family members to insure
- Medical conditions like high blood pressure, diabetes, asthma, etc.
- Lifestyle habits like smoking
EMI Insurance in a nutshell
Purchasing health insurance through monthly EMIs ensures affordability and avoids excessive costs. Examine the available plans and compare them to your needs before purchasing.