Over the past 18 months, the world around us has changed completely! None of us would ever have imagined that the current COVID-19 pandemic would wreak havoc on such a large scale. The pandemic has not only affected the health of people around the world, but has also destroyed jobs, global economies and personal wealth in significant ways.
The only positive aspect of the pandemic is that it has taught us the necessity and importance of ensuring one’s health at all costs. The past few months have made us realize how important health insurance can be in securing the financial future against any unforeseen medical emergency.
With the ever increasing rate of medical inflation, the best way to ensure quality treatment without breaking your savings is with a comprehensive health insurance policy. A health insurance policy provides much-needed financial assistance in a medical emergency such as infection from COVID-19 or any other health problem.
As people realize how important health insurance is in an unprecedented time like this, severe financial strains for many families due to the pandemic make it difficult to invest in health insurance plans. Fortunately, thanks to the timely intervention of the Insurance Regulatory Authority (IRDAI), health insurance plans can now be purchased in Easy Monthly Installments (EMI) – just like any other product.
The availability of health insurance in easy monthly installments has improved the affordability of the product not only in metropolitan cities, but also in Tier 2 and 3 cities. In fact, the demand for easy installment health insurance is very high. more in small towns than in metropolitan cities such as in small towns paying the full premium because a lump sum is a bit difficult due to the only income of a family member. Paying a lump sum premium is also a big reason why many people opt for lower sum insured / coverage plans because they cost less.
However, when the need arises, health insurance coverage does not cover hospital costs and most people have to seek help from family and friends.
With the ability to pay health insurance premiums in easy monthly installments, the financial burden on clients is reduced and they can easily purchase a plan with adequate coverage. Insurers now allow customers to pay the premium for their health insurance on a monthly, quarterly or semi-annual basis. The EMI option in health insurance has made insurance affordable and accessible to all age and income groups.
In addition, with the constant increase in the rate of medical inflation, clients are forced to invest in health coverage with higher insured sums to receive the best possible treatment in the hospital and city of their choice. By paying premiums in installments, clients don’t need to compromise on treatment. Whereas previously, for the Rs 1 crore insured plan, a 30 year old had to pay Rs 11,000 – Rs 12,000 as a lump sum (annual premium), the same plan can now be purchased for a monthly premium. from Rs 900 – Rs 1,000.
The biggest benefit of the EMI option in health insurance is for the elderly who mostly avoid purchasing health insurance due to insurer denial or high premiums. However, it is important to understand that the elderly are the most vulnerable group and are at the greatest risk of getting sick. A comprehensive health insurance policy for the elderly is necessary to effectively deal with medical emergencies without burning your pockets. The EMI option in health insurance is an attractive option for seniors with limited income. Seniors can now pay their premiums in installments and ensure the continuity of their health coverage. The whole process of purchasing health insurance on EMI is very simple and convenient as it does not involve any paperwork / documentation or prior approval.
If you pay the premium for your health insurance policy on a monthly basis and file a claim within the first six months of paying the premium, the insurer will still process your claim. The insurer can deduct the remaining down payments or ask to pay the overdue down payments as a lump sum to benefit from the claims indemnities. However, the overall complaints procedure remains the same.
The author, Amit Chhabra, is Medicare Manager at Policybazaar.com. Opinions expressed are personal