Health insurance policies holds significant importance, yet its cost can deter many individuals from purchasing it, especially those with fixed incomes. To address this concern, the Insurance Regulatory and Development Authority of India (IRDAI) mandated health insurance companies to allow policyholders to pay their annual health insurance premiums in equated monthly instalments (EMIs) starting in 2019. This initiative aims to make health insurance plans more accessible and affordable for Indians, particularly for those facing financial constraints.
The head of the health administration team at at a prominent Health Insurance company in India, emphasized the importance of health insurance penetration in both rural and urban areas. He highlighted that the ability to pay premiums in monthly instalments eliminates a significant barrier to obtaining coverage. This flexibility benefits individuals across various demographics, ensuring they can afford health insurance without facing the burden of a lump sum payment.
The option to pay health insurance premiums in EMIs benefits both insurers and policyholders. It expands the customer base for insurers while providing policyholders with financial security and access to comprehensive coverage. This approach is particularly crucial given the rising prevalence of lifestyle diseases and critical illnesses, ensuring individuals can afford necessary medical treatments without financial strain.
However, there are some drawbacks to consider.
- Paying health insurance premiums in EMIs or monthly instalments may incur additional charges, resulting in a higher overall cost compared to a lump sum payment.
- Some may require policyholder to pay a significant amount as depoait and pay the rest in two or five parts.
- Additionally, some insurers may only offer EMI options for policies with higher sum insured amounts, potentially excluding individuals seeking lower coverage amounts.
- Policyholders paying in instalments may also miss out on discounts available for lump sum payments.
When choosing a health insurance policy with EMI, it’s essential to consider several factors. Look for plans with zero-cost EMIs to avoid additional charges. Ensure the policy adequately covers your healthcare needs and the number of individuals included in the coverage. Thoroughly review the policy’s terms and conditions, paying attention to any exclusions. Additionally, prioritize insurers offering cashless hospitalization and have a reputable customer service track record. By carefully evaluating these factors, you can select a policy that meets your healthcare needs while fitting your budget.