Should you buy health insurance on EMI?
What to keep in mind when buying a health insurance policy
26 June 2021
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According to a study done in 2018, only ~29% of the households in India have at least one member covered under health insurance, which is far lower than that across some of the developed countries.
One of the key reasons behind poor penetration is – Customers usually end up paying the full premium at the time of purchase, and when someone opts for a larger cover, the affordability factor only tends to go down.
In order to drive affordability, the Insurance Regulatory and Development Authority of India (IRDAI) had allowed insurers to sell health insurance coverage on an EMI basis.
Some of the Reasons to Buy Health Insurance on EMI
Accessibility & Affordability:
It gives you the freedom to buy, and is easy on the wallet as the amount to be paid would be distributed over the tenure of your preference, thereby allowing you to spend and make other investments in parallel
Larger health cover
As the payment is being spread across the preferred duration, people have the space to opt for a larger cover, especially if they wish to cover their family as well, and still not feel the pinch on their wallet
Beneficial for senior citizens
Buying via EMI is helpful especially for senior citizens as they have limited monthly income, thereby making it pocket friendly for this segment of users
Ease of payment
The ability to pay for insurance cover on EMI reduces the hassle of paying via cheque or cash, and EMI payments can be done via digital platforms, where people can even opt for the auto-debit option
Tax benefits
People can avail of tax benefits up to Rs 50,000 under Section 80D of the Indian Income Tax Act, 1961
Why wait? Get yourself and your family a Health Insurance cover today!
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