Are There Any Additional Charges For Paying Health Insurance Premiums Via EMI?

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The IRDAI (Insurance Regulatory and Development Authority of India) took a step in 2019 to enhance the accessibility of health insurance for Indian citizens. They requested that health insurance companies offer policyholders the option to pay health insurance premiums with EMIs.


In this section, we will discover whether there are any additional charges for getting health insurance policies through EMIs. Read on to know more.


Do Health Insurance Premiums Incur an Extra Charge for EMI Payments?


Paying health insurance premiums on EMIs incurs additional interest and fees. Many companies levy a 'frequency loading' charge. It refers to a small percentage that is added to each instalment to cover collection and administrative costs.


However, policyholders can avail a no-cost EMI option where the total sum of instalments is equal to the annual premium.


How Does EMI Payment of Health Insurance Premiums Work?


For instance, if the annual insurance premium amount of your health insurance policy is ₹20,000 and you are not able to initiate a one-time payment, you have the option of requesting your policy provider for an instalment option instead.


This will allow you to pay the premiums in two separate instalments of ₹10,000 each or for a total of four instalments each ( of ₹5,000 every time).


What are the Benefits of Purchasing Health Insurance on EMI?



  • Affordable Coverage: For some policyholders, it can become a bit difficult to pay off insurance premiums as a lump sum amount. This is even more applicable if the amount is higher. In this situation, an EMI allows payment in parts.



  • Access to Quality Treatment: The premium payment in parts makes it easier for people to get a health insurance policy with a higher sum insured.



  • Easy Accessibility for Senior Citizens: Senior citizens can have a limited monthly income and struggle. An EMI premium payment makes it easy to ensure continuous coverage.


What are the Drawbacks of Getting Health Insurance on EMI?


● Requires Higher Sum Insured


The option for availing an EMI on a health insurance policy is not available for everyone. It requires a minimum sum insured requirement (which is generally of the higher end). This means you end up purchasing more coverage than you actually need.


● Waiting Period on Claims


There are some health insurance policies which have a waiting period before the coverage starts. However, if you take up the EMI option, you will have to pay several instalments before the coverage actually starts to benefit you.


● No Chance of Availing Discounts


There are times when policies have sales and discounts on them. These can only be paid if you pay the premium in a lump sum. However, no discounts apply for people who pay health insurance premiums in EMIs.


Final Words


Purchasing a health insurance policy on an EMI is a good option if you do not have the appropriate money for making a lump sum payment. However, the fact remains that there is an additional charge associated with it. Hence, this is only a good option if you cannot manage to pay a lump sum amount together at once.