How Does EMI Payment Work for Health Insurance Premiums?

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Various health insurance EMI options provide the convenience of paying the policy premium in equal instalments rather than a single large lump sum. The EMI payment period may vary as per your policy, but it is generally set at 12 months. Health insurance with EMI facility is gaining attention as a popular choice for budget-conscious families.


If you are planning to pay the premium of your health insurance in monthly instalments, your insurer will send you a receipt for the down payment during policy purchase. As you pay the instalments, you will get all the receipts for subsequent instalments. However, if you are unable to pay the instalment premium on time, then a 15-30 day grace period will be provided as per the frequency of your premium installment. If you pay your premium within the grace period, your plans will remain active, and other benefits will continue. In contrast, in case you miss paying the premium during the grace period, your policy will lapse, and you may lose your associated benefits.


Process Involved in Health Insurance EMI Payment Options:



  • Payment Structure: The Total yearly premium is divided into12 equal monthly instalments, often with no additional charges; however, some plans may have a slightly higher charge.

  • Process: After opting for the EMI payment option, an agreement is formed with the insurer, mentioning the installment amounts, due dates, and tenure. Payments are generally automated.

  • Claim Handling with Outstanding EMIs: In case claims arise while EMIs are still not paid, your insurer may deduct the remaining unpaid premiums for that particular year from the claim amount.

  • Grace Period & Policy Lapsing: If you fail to pay your premium installments on time, a grace period of 15-30 days is generally provided. Failing to pay within this period can result in policy cancellation or loss of associated benefits.

  • Alternative Payment Options: While the monthly EMI payment option is common among customers, insurers also offer quarterly or half-yearly installment options for the sake of financial convenience.


However, missed EMI payments carry a higher risk of your opted policy lapsing compared to the annual payments. In addition, some insurers may not offer discounts generally available for annual, upfront payments. It is advisable to review the terms and conditions of the EMI payment plan carefully before enrolling to comprehend the associated costs. Therefore, individuals looking for an EMI payment option in their health insurance plan should check with their insurer, as some plans or sum insured levels might not offer the EMI option.