Main advantages of choosing the Emi option for the health insurance policy

The pandemic has been a game-changer for the world. Where previously the idea was that the younger population is more immune to disease, COVID-19 has established that medical problems do not require any age group or gender. This realization has led to the need to consider a shield i.e. health insurance policy, a vital investment which is still far from most Indians due to the high one-time payment against the coverage. .

Therefore, to make it profitable for all, in 2019 the Insurance Regulatory and Development Authority of India (IRDAI) asked the insurance companies to start accepting health insurance premium payments in EMI or installments. monthly.

The move was well received as nearly 30 percent or 42 crore of the country’s population without any health insurance, according to a survey by NITI Aayog, could now purchase a health insurance policy.

Understanding the EMI option

This development is certainly beneficial for all income groups because it gives the health insurer the choice to opt for different forms of payment and to select the frequency of the payment method, i.e. monthly, quarterly. , semi-annually or annually when the policy is purchased. . Based on the defined term, a fixed amount towards the policy is deducted.

For example, a 39 year old person opting for a coverage amount of Rs 1 crore will have to pay a premium of almost Rs 1,059 / month against Rs 12,703 per year. So, by choosing the flexible payment option, people can protect themselves and their families against health and medical expenses, which can undoubtedly be exorbitant in the country.

But, one thing to note here is that the ease of payment term once set cannot be changed easily. So understand the terms and conditions and weigh them against your financial feasibility.

Know the advantages of the EMI alternative

• Benefit from higher coverage

With new diseases, procedures and scientific advancements, it is advisable to take out a health insurance policy that adequately covers pre and post-hospitalization costs, ambulance costs, etc. Therefore, paying a medical insurance premium in installments rather than once makes it possible for policyholders to opt for high capital insured plans without digging their pockets.

• Accessibility and cost-effective medical treatment

With the corporate health insurance wing not spread across the country, purchasing health coverage for people living in small towns is an ongoing challenge. But with the ability to purchase the policy online as well as the option of EMI to suit their budget, it is now both convenient and affordable for buyers to protect themselves against expensive medical treatment. In addition, a good health insurance plan combined with the ease of paying premiums in installments makes it easier to bear all health-related expenses.

• Protects the elderly

As they age, they become vulnerable to disease and hence the need for a comprehensive health insurance plan arises. But with age also comes the stage of retirement, and therefore, blocking large sums of money on a health policy becomes questionable. Thus, the monthly payment alternative acts as a boon that allows seniors to choose higher premium coverage despite their savings.

• Younger purchasing policy

If there is one, the EMI option is beneficial for the elderly, it is also beneficial for the younger ones. When you are young, the risk of disease is lower because the EMI on the premium will automatically be lower. Thus, if purchased on time, it will maintain the policy longer and higher insurance coverage.

• Tax privileges

Under section 80D of the Income Tax Act 1961, the premium paid for health insurance can be claimed. Tax benefits can go up to Rs 25,000 for people under 60 and Rs 50,000 for those over 60.

To recap, switching to the EMI option for a health insurance policy is undoubtedly full of benefits that will protect you and your loved ones from likely medical bills. In addition, paying premium charges is also straightforward, as the insurer has the option of choosing a direct debit mandate to ensure policy continuity and cost regularity.

Despite the advantages, it is recommended, before purchasing, to always compare the different plans based on the prompt settlement of claims, extensive coverage, reinstatement benefits, etc. Also check the premium you would pay for different periods. While there isn’t much of a difference in most cases, some companies may charge you a little more. You can get all of this information online with some websites even allowing you to buy directly from them. A word of warning, if you are buying online, go for a reliable website than the one offering a cheaper policy as you cannot compromise on your health.

The author, Amit Chhabra, is Health Insurance Manager at Opinions expressed are personal

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Justin D. O'Neill