Top Things You Need to Know about Health Insurance on EMI
While we plan to buy a health insurance plan, we concentrate on its coverage, exclusions, and premium ignoring other essential aspects. We mostly prepare ourselves to pay the premium yearly. However, as per the new announcement from IRDAI in September 2019, health insurance companies have been instructed to accept premiums in EMIs, thus making health insurance payments more convenient.
A health insurance EMI is just like other EMIs, where the lump sum health insurance premium is divided into equal monthly payments. These EMIs can be paid through net banking, credit cards, debit cards, and UPI IDs. You can also choose an auto-debit option and allow your insurance provider to receive monthly installments automatically debited from your linked bank account.
Things to Check before Opting for Health Insurance on EMI
Although paying for your health insurance in EMI is a great option, you must know a few things before making a final choice. There are lots of queries in the buyer’s mind when they opt for an EMI option. Here are the answers you may be wondering for:
Can I make a claim before paying my health insurance premium for an entire year?
Yes, you can. Suppose you have bought a policy on EMI, and after two months, you need to file a reimbursement claim. In this case, the insurance provider has to process your claim. However, you may be asked to either pay the remaining premium amount in a single installment, or your health insurance company can deduct the remaining premium from the total claim amount payable.
Can there be a change in the premium amount when I choose the health insurance plan on EMI?
Usually, there is no change in the basic premium amount when you choose to pay on a monthly, quarterly, or half-yearly basis. However, some companies may impose a loading amount on monthly or quarterly payment options and can marginally increase the total premium. The increase in payment largely depends on the plan type.
Do I have the liberty to change the option of paying for my existing health insurance policy?
Yes, it is possible. All the existing policyholders who want to change the premium payment mode are allowed to do so. But, they can do it only at the time of policy renewal. Any change in the policy in-between is not permitted. If you are looking to change the payment option, then mention the same in the form provided by your healthcare provider at the time of renewal.
Factors Affecting Premium for Health Insurance
You have to consider certain factors while calculating your medical insurance premium. These include:
Total Amount of Sum Insured
Nature of Health Plan
Type of Coverage
Total Numbers of Family Members Insured
Age of the Insured Members
City of Residence