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.
Check what is health insurance and its types.
Top reasons: Why should you buy health insurance on EMI?
Health insurance on EMI provides several benefits to those who cannot afford to pay the premiums upfront. By opting to pay the premium on EMI, policyholders can enjoy the benefits of health insurance without worrying about the financial burden. It is a cost-effective option that allows individuals to pay premiums in instalments, thereby easing the financial burden.
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: Opting for health insurance premium payments through EMI can offer a budget-friendly choice for individuals who find it challenging to pay the premium amount at once.
- Financial security: Health insurance on EMI offers financial security during medical emergencies.
- No interest: Some insurance providers offer interest-free EMI payments, making it easy for policyholders to afford health insurance premiums.
- Flexibility: Health insurance on EMI offers flexibility in payment tenure and amount, making it easy for policyholders to choose a policy that fits their needs.
