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What are the Advantages of Taking Health Insurance on EMIs?

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Health is undoubtedly wealth, but you never know when an emergency might come knocking on your door in the form of an accident or illness. Plus, healthcare costs are on a constant rise, which makes it difficult to avail the best treatment at times. Hence, staying covered with health insuranceis important for people of all ages. A health insurance policy covers your hospital bills and other related expenses and saves you from financial worries.Considering the importance of health insurance and the financial constraints of the middle-class population, IRDAI has introduced easy EMI payment of health insurance premiums. So, you can now pay a fixed amount every month and keep your health plan active. This decision has come as a big relief for those who cannot shell out a hefty premium annually.

Why did IRDAI introduce the health insurance on EMI option?

In 2019, IRDAI introduced the EMI provision to make health plans affordable for those who cannot pay a lump sum annually towards policy premiums. Another reason to introduce this provision was to encourage more people to buy health insurance for themselves and their loved ones. A health plan can help policyholders avail quality and timely healthcare services, and this can help save many lives.

Why buying health insurance in instalments is a good idea?

Here’s a look at the benefits of buying health insurance in instalments:

• It makes health insurance affordable for those who can’t pay huge premiums in one go.

• Many people in rural areas are still unaware of health insurance. The easy EMI option makesthis insurance productmore accessible, beneficial and affordable for small town people.

• Considering the high cost of living in cities, buying health insurance on easy instalmentsis both economical and feasible for metro dwellers.

• Small premiums and auto-debit facility make it easier for policyholders to stay covered under health insurance.

• Affordable monthly premiums will encourage more people to take health insurance and this will benefit them as well as the insurance industry.

Reasons to pay health insurance premiums on EMIs

Here’s why you should pay health insurance premiums on EMIs:

1. Higher coverage:

When you take health insurance on EMIs, you need to pay a nominal amount every month. But you can still opt for high coverage, and this will help you avail quality treatment if required.

2. Soaring healthcare costs:

Healthcare has become expensive throughout the country, especially in metro cities. With the option to pay premiums in instalments, more people can take Mediclaim policies for themselves and their loved ones. This can be a big financial support during medical emergencies.

3. Better healthcare:

Sedentary lifestyles and unhealthy eating habits have made people of all ages susceptible to multiple health conditions, such as diabetes, cardiovascular conditions, kidney issues and more. The treatment of these conditions can burn a hole in your pocket. However, since you can pay health insurance premiumsin instalments now, you can buy a good health plan and stay covered.

4. Coverage for the entire family:

When you get to pay health insurance premiums in the form of EMIs, you can safeguard your entire family without fretting about hefty premiums.

5. Beneficial for senior citizens:

Senior citizens have limited income or savings post retirement. Hence, it may not be feasible for them to pay a high annual premium against their health plans. Since health insurance premium is now available on EMIs, even senior citizens canbuy Mediclaim policieswithout worrying about hefty premiums.

How is health insurance premium calculated?

The following factors are considered for calculatinghealth insurance premiums:

• Age of the policyholder: This is one of the most important factors considered for calculating health insurance premiums. The younger you are, the lower will be the premium and vice-versa.

• Past medical history: If you are healthy, you need to pay a low premium for your health plan. Premium is higher for those with pre-existing conditions.

• Sum assured: The higher the sum assured, the higher will be the premium and vice versa.

• Policy type: The premiums for individual plans are lower when compared to family floaters. Also, group health plans have a lower premium than individual health plans. The premium increases if you take one or more add-on covers.

• Nature of job: If you are a school teacher or in an office job, the risk of suffering an injury is low. Hence, the premium of your health plan will also be low. However, if you have a high-risk job in a factory, you willneed to pay a higher premium.

• Body Mass Index: People with a high body mass index or BMI are at a higher risk of suffering from heart conditions, diabetes and more. Hence, they need to pay higher premiums. Health insurance premiums are lower for those with a normal BMI.

• Co-payment feature: If you opt for co-payment of health insurance claims, the premiums will be lower.

• Smoking and drinking habits: Since these habits increase health risks, smokers and alcoholics need to pay higher premiums.

• Place of residence: Considering the high cost of medical expenses in cities, city dwellers need to pay higher premiums when compared to those living in small towns.

Example to understand EMI payment of health insurance premiums

The following table will give you a better idea of how health insurance premiums on EMIs work.

Conclusion

To sum up, taking a health insurance plan on EMIs is one of the best ways to cover yourself and your loved ones against medical emergencies and untimely expenses. The health plan will take care of the hospital bills and help you concentrate on the treatment and recovery. Now when many good health plans are available online, you can easily shortlist a few, compare their features and premiums, and make a purchase in no time.You can also use the online premium calculator to get an idea about the amount you have to pay for your health plan.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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