Many countries around the world offer their citizens to pay health insurance premiums in instalments. Many people avoid getting health insurance plans because of the hefty premiums; they either go for lesser coverage (read lower premium amount) or never get insurance.
In view of offering support to the rural and the urban population to avail health insurance on EMI, the IRDAI (Insurance Regulatory Development Authority of India) has made provisions for the general public that allow health insurance agencies to accept premium amounts in the form of equated monthly instalments or EMIs. This regulatory move’s primary focus is straightforward— making health insurance affordable and accessible to the public. With the new policy and EMI rate, even the insurance policies with higher premiums can be converted into manageable monthly premiums that will only help the common man.
Here’s why buying health insurance on EMIs is beneficial for you –
- The cost of hospitalisation and medical bills has become expensive over the past few years. As a result, not many people can cover the cost of their medical expenses on their own. With the ease of paying insurance premiums in the form of EMIs, you can now finance your medical treatments.
- Since the premium amount is now divided in the form of EMIs auto-debited from your account, you can opt for a higher coverage amount. You can even calculate the amount you will be paying using a simple EMI calculator at the given EMI rate. It is also true that the premium amount is lesser for the younger applicants than that for senior citizens, meaning more convenience of paying the instalments for the working class.
- The global health crisis has put everyone’s health in jeopardy. Hence, it’s essential to cover yourself and your family members, if anything critical happens. Health insurance plans prepare you for such adversities and keep you from draining your life’s savings on one treatment or the other.
- Thanks to internet connectivity, you can now make your monthly instalments via internet banking. You can undoubtedly pay your premium instalments online through secure payment gateways and even choose to set up auto-debits from your account. This is to ensure you never miss any payment or lose your health insurance coverage.
- Salaried employees can now avail tax benefits under the section 80D of the Income Tax Act of 1961 for a premium paid in the form of instalments.
This is a friendly move that will help the middle and lower-income groups reap the benefits and encourage them to buy the policies. If you are also considering purchasing a health insurance plan for yourself or your family, try CRED’s EMI calculator that will help you measure the amount that you must keep aside every month. The calculator takes specific inputs from you and helps you plan your instalments in advance, making it easy for you to determine the policy that suits your needs and your pocket.