Health Insurance Plans Premium with EMI

When buying a health insurance , we look for its coverage, exclusions, and premium apart from other aspects.

If interested in the policy purchase, we prepare ourselves to pay the health insurance premium on a yearly basis.

There’s nothing new to making payment of health insurance premium policies on a yearly basis as it has always been the case.

However, a regulatory change introduced by the IRDAI in September 2019 has made health insurance premium payment more convenient.

Now, it is possible for a health insurance policyholder to pay a health insurance monthly premium.

As a matter of fact, those willing can also pay the health insurance premiums on a quarterly or half-yearly basis apart from choosing the regular option of yearly premium payment.

Let’s explore the advantages of buying health insurance on installments.

But before that, let us take a look at why this specific change has been made?

Paying health insurance premium in installments – Why IRDAI has made this change?

Many people still find it unnecessary to secure themselves with a health insurance policy.

On top of that, the decision of buying the policy becomes even more doubtful for such people, when they find out that premium payment is to be made on a yearly basis.

With this regulatory change by IRDAI, buying health insurance would become more affordable and convenient for health insurance customers like such.

What’s great is that those comfortable with the option of yearly premium payment would get a chance to make the overall health insurance experience even more favorable.

Also read, Benefits of Health Insurance Policy in India

Let’s find out what else monthly health insurance premium payment has in store.

6 Benefits of Paying Health Insurance Premium on a Monthly Basis

1. Since health insurance investment will become more affordable owing to the change, there is a significant chance of health insurance becoming more accessible in small towns as well as rural areas of our country.

2. People residing in urban areas of the country will find premium payment in installments quite relieving in comparison to paying a lump sum amount on a yearly basis.

3. Being able to pay premium online makes the whole health insurance experience more convenient. With this change, paying a premium on a monthly, quarterly, half-yearly basis other than yearly payment will become more simple for policyholders.

4. With premium payment made flexible, i.e., on an installment basis, it would become easy for policyholders to invest in policies with a higher sum insured and gain more coverage. It is a far better situation for those who until now have hesitated in choosing high sum insured policies and compromised on the quality of treatment.

5. With more and more people opting for premium payment on an installment basis, it would motivate health insurance companies to come up with new products and offer better customer case service, simplify the claim process and more.

6. Senior citizens, owing to the change in premium payment mode option, will be able to afford health insurance even with their limited monthly income, that too without having to compromise on treatment quality or worrying about managing the finances at the last moment.

Here are the answers to a few questions you may be having at present.

What if I make a claim before paying my health insurance premium for a full year?

Let’s assume, you have bought a health insurance policy on a monthly premium payment basis. After two months of premium payment, you file a reimbursement claim.

Note that even in a case like such, the insurer will have to process your claim. However, in this situation, you will have to either pay the remaining premium amount in a single go or allow the insurer to deduct the remaining premium from the total claim amount payable.

In other words, the installment-based premium will not impact the claim settlement process for the insured individual.

Will there be a change in the premium amount if I choose the health insurance monthly premium option?

Whether a policyholder wishes to opt for a monthly, quarterly or half-yearly basis, other than yearly payment option, there would be no change in the basic premium. However, your health insurance company may marginally increase the total premium in that case. This increase in premium can vary based on plan type.

Can I change the option of paying the health insurance monthly premium of my existing policy?

Yes, you can! Those existing policyholders willing to change the mode of premium payment are allowed to do so only at the time of renewal of the policy. Any change in the premium payment mode in the interim period is not allowed.

Most importantly, policyholders looking forward to changing the mode of premium payment will be required to mention the same in the form provided by their health insurer at the time of policy renewal.

Will the free-look period be shorter if I opt for a health insurance monthly premium?

The free look period is generally the period of 15 days of receiving the policy document during which the purchaser/policy owner can stop/terminate the policy without paying any penalties, in case of annual premium payment basis.
However, in the case of installment based premium payment, whether monthly, quarterly, or half-yearly, the free-look period will be cut too short.

Final Words

The new change in premium payment mode options has been welcomed by policyholders from all parts of the country.
Since it has made health insurance affordable for lower-income groups in a massive way, more people are showcasing interest in buying health insurance on EMI or paying health insurance monthly premiums.

If you too are willing to adopt this change, go for it at the time of your policy renewal.

For more information, call us at 7551196989.

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