Should You Purchase Health Insurance on EMIs?


Medical technology has progressed leaps and bounds over the last few decades. Ailments that once were seemingly impossible to treat can now be treated with help of medical science. All of these positive developments come with an increased cost of medical treatments which further contributes medical inflation. This makes health insurance an absolute necessity in present times. Any medical procedure, even a minor one can end up extinguishing your entire contingency fund. Thus, with the backup of a medical insurance cover, you can stay wary of expensive treatments that might lead you to a debt trap in the absence of one.

That being said, the truth about medical insurance is not everyone in the country is covered by one. There is no law that makes it mandatory to have a health insurance and thus many people still consider it to be an additional expense. To ensure this scenario changes, the regulator, Insurance Regulatory and Development Authority of India (IRDAI), has directed the insurance companies to offer different payment frequencies rather than only one single payment. This is where the concept of payment of health insurance premiums of EMIs has come up. This facility makes health insurance more accessible to the lower income groups. What once seemed like a financial burden to pay huge lumpsum amount is now possible with the help of EMIs.

Is it advisable to buy health insurance with the EMI option?

Here are some reasons that can help you make a choice whether it is feasible to buy health insurance on EMI –

Increasing health concerns: There has been a rising concern about the lifestyle diseases that are slowly gripping the majority population. Sedentary lifestyle, unhealthy eating habits and increasing stress levels are a major reason for such growing concern. When you know what is health insurance and how it aids to tackle these lifestyle-related ailments, it can help to make a prudent choice to insure against them. Further, with the provision to pay your premiums in equated instalments, affording coverage for a larger sum assured becomes easy on your wallet.

Rising treatment costs: As discussed above, the developments in medical technology has made it possible to treat more ailments but thereby pushing up the treatment cost. This has also resulted in increasing the premiums for your policy. With an EMI option, ensuring financial protection becomes affordable since the amount payable is split across the policy tenure.

Selecting higher sum assured: Another advantage of EMI option on insurance premiums is that a higher sum assured can be purchased. Not only it helps in having a higher financial coverage, but also there is no need for compromising on selecting features that are essential as per your requirements.

Easier to buy family coverage: The EMI facility helps to seek family health insurance. Since these family policies cover more than one beneficiary at once, their premiums are slightly higher as compared to an individual policy. With the premium amount spread out over the policy tenure, it is convenient to seek coverage without having to worry about finances.

With these benefits mentioned above, you can opt for the EMI option if your insurer offers one. Spreading the total amount premium over a specified duration helps to avail higher coverage at budget friendly prices. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Pax Heber
the authorPax Heber