Introduction
Health problems and healthcare costs are rising rapidly, putting financial pressure on many. This is where having health insurance coverage can make a difference. It helps cover various medical expenses and ease worries, especially during expensive treatments. While most people understand the importance of coverage, the high annual premiums can make it difficult to afford.
Keeping this in mind, insurance companies offer health insurance on EMIs (Equated Monthly Instalments). This option allows you to avoid paying a lump sum upfront, making it easier to get the coverage you need. However, before choosing health insurance on EMI, there are a few important factors you must consider to avoid hassles later. Keep reading to find out more.
Health insurance on EMI allows you to pay your insurance premiums in smaller, more manageable instalments instead of a large amount at one time. This makes it easier to manage your finances while still getting the coverage you need. With this option, you can choose comprehensive coverage and pay premiums in convenient instalments.
The following are some points to keep in mind:
· Insurance companies offer policyholders the flexibility to make payments monthly, quarterly, half-yearly or yearly. You can choose the option that best suits your budget and needs, making it easier to manage your premiums.
· The premium amount remains the same regardless of the payment frequency, so you will pay the same total amount, just spread out over time. While comparing plans and premiums online, you can use a health insurance premium calculator to get an idea of the costs.
Therefore, the EMI option provides flexibility and helps you avoid the financial strain of paying a lump sum upfront.
The following are the advantages of buying health insurance on EMI:
· Better coverage: With this option, you can opt for higher coverage to help cover your medical bills. While premiums may be higher, you can pay them in affordable monthly, quarterly or half-yearly instalments. Given the rising cost of medical expenses, higher coverage can be invaluable during expensive medical procedures.
· Helpful for senior citizens: Health insurance premiums increase with age, and seniors often have limited retirement income and savings. However, since health issues are common among the elderly, it is crucial for them to stay covered under health insurance. In such cases, opting for an EMI plan can be a helpful and affordable solution. With manageable health insurance payments, senior citizens can access quality medical treatment without the stress of large out-of-pocket expenses.
· Budget-friendly and convenient: Paying smaller amounts regularly helps you avoid financial stress and makes it easier to keep up with your premiums. You can also choose automatic payment options, which reduce the chances of missing a payment.
Here’s a list of key factors to consider before choosing an instalment plan for health insurance:
1. Coverage: When you are buying health insurance, check the level of coverage you need. It is wise to choose a comprehensive plan with a higher sum insured for financial protection against a range of medical expenses. However, comprehensive coverage will increase the premium amount. Therefore, make sure policy coverage aligns with your healthcare needs and financial situation.
2. Premium amount: Once you have decided on the coverage and know the premium amount, evaluate whether the instalment plan fits within your budget. It is important to ensure that the monthly, quarterly or half-yearly payments are affordable for you.
3. Interest rates and fees: Check if the instalment plan comes with any added interest rates or administrative fees. These extra charges could increase the total amount you end up paying.
4. Payment flexibility: Look for health plans that offer flexible payment options to match your financial preferences and prevent issues in the future.
5. Policy terms and conditions: Along with checking the policy's inclusions, exclusions, waiting period, claim process and other terms, make sure you also understand details like fees for missed payments and the rules for cancelling the plan. Knowing these details can help you avoid surprises later.
6. Automatic payment options: Look for automatic payment options for your health insurance EMI payments. This will help you avoid missed payments and associated late fees.
When choosing an instalment plan for health insurance, remember to consider factors like premium affordability, coverage, flexibility in payment options and policy terms and conditions. It is important to carefully evaluate these aspects and ensure that the plan fits your budget and also meets your healthcare needs. With the right plan, you will have peace of mind knowing you are covered without worrying about paying a large amount upfront.
Disclaimer:The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.