Paying Health Insurance Premiums in Instalments is Now Possible
The pandemic declared coronavirus has impacted businesses across several industries in India. In such times when people are facing a liquidity crunch, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced some guidelines to bring some relief to the health insurance policy buyers. As per the guidelines, the standalone health insurance companies and general insurance companies have to now provide an option to the policyholders of paying health insurance premiums in instalments. For instance, Bharti AXA General Insurance Co. Ltd. and Bajaj Allianz General Insurance Co. Ltd. are popular insurance companies that provide the option of paying the health insurance premiums in instalments to the policy buyers. The policyholder can pay instalments on a monthly, quarterly, half-yearly, or yearly basis.
How Does it Work?
If an individual chooses to pay a health insurance premium in instalment when purchasing a policy, then he/she will be sent the receipt of down payment received. As the policy buyer pays the remaining premium in subsequent instalments, then he will be given the receipts.;
In case the customer is unable to pay the premium on time, then a 15 days grace period is provided. If the premium is paid during the 15-days grace period, then he/she will be eligible to avail of accrued benefits along with the No Claim Bonus and waiting period benefit.
Payment of Claims in Monthly Instalments Premium
If you choose to buy a health insurance policy on premium payment on a monthly basis and have already paid 3-4 installments, then the insurance company is liable to accept your health insurance claims in case of a medical emergency. But you will be required to pay the remaining premium in one go or the insurance company will deduct it from the claim amount payable. There will be no impact of premium paid on installment basis on the claim settlement process if the balance premium is paid upfront. Otherwise, the insurer will deduct it from the claim amount.
Benefits of Buying Health Insurance Plans on Instalment
Buying health insurance plans on instalments keeps you stress-free. Other advantages that it offers are as follows:
- Affordability: You can avail of affordable care by paying health insurance premiums on a monthly, quarterly, half-yearly, or yearly basis. It not only protects you against financial worries but reduces stress as you do not have to worry about paying the entire premium in one go.
- Convenience: As you have an option to pay health insurance premiums on a monthly, quarterly, half-yearly, or yearly basis, therefore, you can from them as per your own convenience.
- Retain Liquidity: As there are options to pay the health insurance premium in monthly, half-yearly, quarterly, or annual instalments, therefore, you will be able to retain higher liquidity, which is very important considering the current coronavirus outbreak. It helps you get yourself as well as your family members insured while retaining the required liquidity to meet household or other expenses.
- Tax benefits under Section 80D of the Income Tax Act: The premiums paid for health insurance plans are eligible for tax benefits under Section 80D of the Income Tax Act, 1961. This will help you reduce tax burden thereby saving money.
- Pocket-Friendly Health Insurance Premiums: The pressure on your wallet is lesser when you choose to pay health insurance premiums on a monthly, quarterly, half-yearly or annual basis. Therefore, you can choose a higher sum insured or add more family members under the policy, if required. This will help you get wider coverage without any financial trouble.
Conclusion
The option to pay health insurance premiums on a monthly, quarterly, half-yearly, or annual basis is most likely to motivate people from several socio-economic backgrounds to seek health insurance. So, get yourself and your family covered under a reliable health insurance plan at affordable premiums today.
Stay healthy, stay insured!
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
