Good news for existing policyholders – you can now pay your premium in easy installments
Buying health insurance in India has been made even more comfortable! Pay your premium in easy installments that suit your schedule.
Although this is not news to many, this feature was not offered to existing policyholders, as the mode and frequency of the installments towards the premium are decided when you buy the policy itself.
Keeping the current COVID-19 pandemic and the economic crisis associated with it in mind, the Insurance Regulatory and Development Authority of India or IRDAI, for short, has advised the Insurance companies to switch to an EMI mode for all policyholders.
This comes after the announcement made in September 2019 by IRDAI, which stated that policyholders would be given the freedom of paying their premiums in easy monthly, quarterly, half-yearly, or, the usual, yearly installments.
How does the average policyholder benefit from this feature?
Since this advisory came out in 2019 only, most existing insurance policyholders had difficulties availing this feature without their insurers making modifications in their products, which could have been done till October 1st of this year.
The specified period for availing the new offer is at least till March 31st, 2021. However, it has been left up to the discretion of the companies whether they wish to continue providing this benefit to already insured individuals, forever.
But IRDAI has given strict instructions to the insurers to offer all policyholders the option to pay their premium in monthly installments, effective immediately.
Would this induce a change in the charging structure of the premium?
IRDAI has asked the insurance companies not to make any changes in their premium amounts, irrespective of the frequency chosen by the insured individual.
The premium amounts would remain consistent, and the premium payment table would experience no changes.
What factors should you look out for before you switch to an EMI mode?
- There could be a difference in the premium loading charges - many insurers are expecting a gap in annual and monthly premiums due to the built-in costs to account for any risks, i.e., the loading charges.
- Once chosen, payment mode can’t be changed until renewal
- Choose to pay through EMIs only when you run the risk of losing the cover due to a policy lapse
- Paying an installment on time is on you – upon non-payment of a premium payment you might lose the cover temporarily
- Claim settlement could get complicated – claim payouts could be adjusted according to the balance premium amount that you have to pay
How do you decide the health insurance premium amount?
With the help of a health insurance calculator, you can easily deduce the amount you’ll have to invest in getting adequate coverage.
According to the plan that you are going for, like an individual, family, or senior citizen plan, you’ll be asked to provide your age and the number of people that have to be insured.
Some companies ask for a medical wellness check as well, or entirely waive it off for young individuals.
Some FAQs:
What is the best age to buy a health insurance cover?
An insurance cover, be it life or health, can be bought whenever you have the means to get one. But people should preferably invest in one as soon as possible, especially when they are young and healthy. In this case, you can reap the apparent benefits of remaining insured while being offered a lower premium as well.
Are you covered from the moment you buy an insurance plan?
No. Coverage begins after the minimum waiting period is over, usually 30 days. Although accidents are covered from day one, some diseases (such as cataract, hernia) and pre-existing conditions are offered coverage after a more considerable waiting period (ranging from a year to 4 years).
Finally, investing in any kind of insurance has to be done with a clear mind and after you have weighed in all the options available to you.
Once you have considered and evaluated the occupational risks you are subjected to daily and the premium you’ll be asked to pay for a coverage amount you deem sufficient, you can buy the best health insurance in India for you, out of all the available options.