Health insurance is an essential aspect of our lives. It covers medical expenses and provides financial security during medical emergencies. However, not everyone can afford to pay the high health insurance premiums upfront. This is where health insurance on EMI comes into the picture. In this article, we will discuss how health insurance on EMI works, why you should consider it, the advantages and disadvantages of buying health insurance on EMI, and how to choose the right health insurance policy on EMI.
How does health insurance on EMI work?
Health insurance on EMI means that you pay the insurance premium in equal monthly instalments over a specific period. Once the policyholder chooses to pay the premiums on EMI, the insurance provider and the policyholder work out an agreement which outlines the terms and conditions of the EMI payments. Under this agreement, the policyholder pays a fixed amount every month with a predetermined interest rate over a specified tenure.
Why should you buy health insurance on EMI?
Health insurance on EMI offers a convenient solution for individuals who may find it challenging to pay their premiums upfront. By choosing to pay in easy installments, policyholders can access comprehensive health coverage without straining their finances. This cost-effective option ensures that quality healthcare remains within reach, allowing individuals to manage their expenses more efficiently while staying protected against medical emergencies.
Why did IRDAI introduce the EMI option for buying health insurance?
To make health insurance more accessible to the masses, IRDAI introduced the EMI (Equated Monthly Installment) option for buying health insurance policies. This payment option allows individuals to pay their health insurance premiums in installments over a specific period, making health insurance more affordable and accessible, especially for those who might find it challenging to pay the entire premiums upfront.
The EMI option has helped people budget their finances more efficiently by enabling them to manage health insurance payments in a way that suits their financial position. Additionally, offering health insurance policies on EMI has helped insurance providers to attract more customers by providing payment options that cater to diverse financial needs, enabling more people to benefit from financial protection against unexpected medical expenses.
Advantages of buying health insurance on EMI
Given below are the key advantages of paying health insurance premiums on EMI:
- Affordability: Paying health insurance premiums in EMIs makes it easier for individuals who may struggle to pay a lump sum amount upfront.
- Financial security: Having health insurance on EMI ensures you remain covered during medical emergencies without worrying about immediate expenses.
- Zero or low-cost EMI: Some insurers offer interest-free EMI options, making it even more affordable for policyholders.
- Flexible payment tenure: Choose an EMI plan that suits your financial situation, with flexible tenure and payment amounts.
- Instant policy activation: Even if you opt for EMI payments, you can still enjoy full health coverage without delays.
- Access to high-cover plans: EMI options make it possible to choose a policy with a higher sum insured, ensuring better financial protection against medical expenses.
- No impact on savings: Spreading premium payments over multiple months helps you manage your budget better without depleting your savings.
- Family coverage: EMI-based health insurance makes it easier to afford comprehensive policies that cover your entire family.
By opting for health insurance on EMI, you can enjoy the benefits of a robust health plan without any financial burden. Always check with your insurer for specific EMI options and interest rates before making a decision.
