To make the medical insurance more affordable for people, IRDAI in 2019 asked the insurance providers to offer additional premium payment frequencies by filing minor modifications in the existing policies.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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With the availability of paying health insurance premiums on EMIs, you can pay a fixed amount every month towards your mediclaim policy. You can enjoy your peace of mind without worrying about paying a hefty premium every year. Thus, paying health insurance premiums on instalments is a wise decision.
As most of the people in India do not have medical insurance cover. The reason behind it is the need to pay the premium at once, which might seem like a financial burden to some. The main objective is to make health insurance more accessible and affordable. Furthermore, people who do not want to pay the annual premium can now opt to pay the premium in EMIs.
People who found it difficult to pay the premium in a lump sum can now consider paying the health insurance premium on monthly instalments for the following reasons:
In Apr-Aug quarter 11% of the medical insurance claims alone were from COVID patients this year. As more and more customers are inclined towards buying health insurance online amid the going pandemic, the payment of premiums on EMI will make it easier for them to buy an insurance cover.
Let’s discuss further why it can be a good option to pay your policy premium through monthly instalments:
The information required to calculate the medical insurance premium is mentioned below-
However, you can use a health insurance premium calculator online to evaluate the cost of the premium. All that is required is to enter the below information-
|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.)|
*The premium mentioned is without GST for members lesser than 35 years of age from Tier 2 cities. The above table is for reference only, the premium varies based on the insurer and the type of health insurance plan purchased
So, if you are paying the premium every month, and you need to file a claim within six months of paying the premium, then the insurer will be processing your claim. However, it might deduct the remaining instalments or you would need to pay the pending premium amount to avail the claim benefits. Simply put, it will have no impact on the overall claim procedure.
The policyholders can change their mode of premium payment at the time of policy renewal. However, it is not possible to make modifications in the interim period. Those who are looking forward to opting for a different mode of premium payment would need to mention that in the policy form at the time of renewal.
The basic premium cost doesn’t change whether you opt for a monthly, quarterly or half-yearly premium payment option. However, in some cases depending on the insurer and the type of health plans, some insurers can charge a slightly higher premium.
Most of the health insurance plans provide a free-look period of 15 days after the policy commencement. During this period the policyholder can withdraw the policy without any penalties when opted for annual premium payment option. And if you chose to pay your policy premium on EMIs i.e. monthly, quarterly, or half-yearly, then the insurer might cut short the free-look period.
All the policyholders across India seem to have welcomed the EMI option to pay the health insurance policy premium. It makes health insurance reasonably priced for the lower-income groups and we have witnessed a sharp increase the policy buyers since the instalment option has been announced.
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