Health insurance is very important for financial planning. It provides protection against unexpected and serious medical expenses. However, the rising cost of health insurance has become a matter of concern for needy families. To address the concerns of such families, many insurance companies are now offering the option of paying premium on easy EMIs.
EMI in health insurance is especially useful for those who may find it difficult to pay the entire premium in advance. This facility gives policyholders the option of paying in small installments instead of paying a lump sum amount. This makes it easier for individuals and families to afford health insurance coverage.
Premium increased by up to 50%
Health insurance premiums have seen an increase of up to 50 per cent in the last one year. According to a survey by Local Circles, 21 per cent of people believe that their health insurance premium has increased by 50 per cent in a year. 31% of the people said that they are paying 25-50% more premium than a year ago.
Benefits of choosing EMI option
Paying premium in small installments reduces the financial burden on policyholders. This is beneficial for those who have limited disposable income.
Access to higher coverage
Through EMI, policyholders can opt for higher coverage plans. It provides better protection against hospitalization, surgery and medical expenses.
Avoiding the risk of default
Paying the lump sum premium can become difficult with increasing age. This can lead to delay or default in renewing the policy. The EMI option avoids this risk.
Those who have budget constraints
A person or family with limited income or a tight budget can continue health coverage by choosing the EMI option instead of paying a large lump sum amount.
First time policy buyers
First time health insurance buyers can get comprehensive coverage without making a large advance payment.
Small business owners and freelancers
For such people with irregular income, EMI facility can prove to be helpful in managing health insurance premium. This facility allows maintaining coverage with better financial management.
