Health insurance on EMI
Published On Mar 28, 2021 5:30 AM By KANIKA WADHWA
Table of Contents
In order to increase the affordability of health insurance for people of India, in the year 2019, the Insurance Regulatory and Development Authority of India(IRDAI) asked the insurance companies to start accepting health insurance premium payment in monthly installments.
With policyholders getting the option of making payments on health insurance premiums in installments (EMI) ,a fixed amount can be paid by them on a monthly basis against their health insurance plan. With this welcoming change, now the middle class income group people can have their peace of mind rather than worrying about making payment towards heft health insurance premium.
Reason for Introducing this Provision by IRDA
In India, the majority of individuals do not own a health insurance cover as the condition to make payment towards the hefty premium for health insurance in a single stance might appear to be a financial burden on the middle income class group. The primary objective behind the introduction of this provision by the Insurance Regulatory and Development Authority of India (IRDAI) was to make health insurance plans much more affordable and accessible by everyone in the nation. Moreover, individuals who were not comfortable in paying premium at once, can now opt to the premium in EMIs.
Why paying Health Insurance Premium on EMI is a Good Idea?
Let us understand how paying premium on EMI can turn out to be a good option:
Costly Healthcare Treatments
Due to the advancement in medical science, the expenses related to treatment and hospitalisation has become very costly these days. With ease in the premium payment on installment, it will become simpler to financially support yourself in covering healthcare expenses with a good health insurance plan.
Choose Higher Coverage
The policyholders, who now have the flexibility to make payment of premium in installment, it becomes simpler for them to now opt for a higher coverage without the need to make payment for health insurance premium in a single go. Now, the individuals no longer require to compromise on availing a good quality treatment as the benefits can be availed by paying the premium in installment.
Cover for Self and Other Family Members
As any health emergency does not come with any prior notice, which could consequently put the individual in a financial burden. However, now you can safeguard your whole family without worrying much regarding paying a hefty premium amount as it can now be paid on both monthly as well as quarterly basis.
Increase in Health issues
As nowadays majority of people are living a sedentary lifestyle and have also adapted to unhealthy eating habits, there is a considerable rise in the number of lifestyle related diseases and cardiovascular diseases such as cancer, kidney failure, diabetes etc. Now you can easily avail health insurance policies for any of the mentioned illnesses including health cover for Coronavirus by paying the premium in instalments i.e either on monthly basis or quarterly basis.
Under the section 80 D of the income tax act, a policyholder can avail tax benefits even on premium paid in instalments.
The new provision related to paying health insurance plans on EMI has been welcomed by all the policyholders in India. With this option, now the health insurance can be easily availed even by the lower income group due to the affordability factor. Hence, there has been a great rise in the number of policy buyers of health insurance in India after the introduction of the plan.
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.