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The importance of health insurance cannot be overstated. But, many people might not consider buying health insurance, and one of the main reasons for this is the cost. Those who rely on monthly or fixed incomes may find it difficult to pay the annual premium in a lump sum.
So, to increase the affordability of health insurance for Indians, in 2019 the Insurance Regulatory and Development Authority of India (IRDAI) asked health insurance companies to provide policyholders with the option of paying annual health insurance premiums on EMIs. Thus, it is possible to pay a fixed amount in quarterly, monthly and half-yearly instalments towards a health insurance policy.
There are many advantages that come with being able to pay health insurance premiums on a monthly basis:
The option to pay health insurance premiums in the form of EMIs makes it more convenient for a lot of people who rely on a monthly income. Additionally, the ease of making payments online makes it a hassle-free experience. Both of these features have also helped make health insurance more accessible to people in rural areas.
These days, with the increasing medical costs, it is necessary to have health insurance for financially support in covering healthcare expenses. This means that it is important to get a higher sum insured amount, that can result in a higher premium. And with the option to pay health insurance on EMIs, this becomes more manageable for many, and thus allows them to deal with these rising expenses.
People who rely on a monthly income may find making a lump sum payment for their premium quite challenging. Thus, when they are able to choose a more flexible premium payment through EMIs on a monthly, quarterly, or half-yearly basis, they can have easier access to more affordable health insurance coverage, and not have to compromise on the quality of the treatment.
Senior citizens are more vulnerable to health risks, and thus face higher premiums for their health insurance. Additionally, seniors might also have a limited monthly income. Thus, with the availability of health insurance on EMI, they can now avail themselves of an essential health insurance policy, and get medical treatments without having to worry about managing their savings.
There are many policyholders who would prefer to have a wider coverage, or a higher sum insured amount, but could not afford the higher premium costs as a single payment. But, with monthly EMI payments, they can now opt for higher coverage without having to make the payment all at once.
Even when one pays their health insurance premiums through EMIs, they are still eligible for tax benefits as per Section 80D of the Income Tax Act. They can claim deductions on their income tax as per the premium paid towards insurance.
There are also a few cons or disadvantages about getting health insurance on EMIs that cannot be ignored:
With so many different health insurance plans out there offering EMIs’ it can be difficult to know which one to choose. There are some factors to look out for, such as:
Conclusion
In a country like India, where the affordability of health insurance is an issue, the option to take monthly EMIs is a great benefit. It can allow people to get comprehensive healthcare coverage even when those policies were originally out of their reach.
Thus, as long as you do not overlook the cons of buying health insurance on EMI, it can be an excellent and affordable way to keep yourself and your family protected from rising medical expenses.
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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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