Wednesday, May 29, 2024

Health Insurance: Can Pay Premiums On a Monthly Basis

To make health insurance more reasonable and to choose a bigger sum insured, many people, especially those who are salaried, prefer to pay the premium on a monthly basis. This enables the policyholder to protect his and his family’s health while maintaining enough cash on hand to cover other costs.

Senior citizens who must pay a high premium can benefit from the monthly premium payment option. Currently, there are four ways to pay for health insurance: every month, every three months, every six months, and every year. When paying health insurance payment in instalments, particularly the monthly and quarterly modes, policyholders must carefully read the tiny print.

Increased Costs     

While choosing a health insurance plan with monthly payments offers flexibility and ease of budgeting, it must be noted that this payment arrangement may come with additional costs. Compared to an annual payment option, a health insurance monthly premium often results in higher overall expenses. Moreover, certain concessions or benefits that are typically available with yearly payments may not be accessible to policyholders choosing the monthly payment option.

Claim Resolution

The claim process will not be impacted by the premium that is paid on a monthly or quarterly basis. The policyholder must pay the full premium upfront to settle the claim, or the insurance company will deduct the remaining annual premium from the total claim amount. The insurer must process the claim even if the policyholder has only paid the premium for one month.

Claims are subject to terms and conditions set forth under health insurance policy.

On the whole, the amount paid as a premium under whatever payment frequency, the policyholder is entitled to claim tax benefits under Section 80D. In order to keep track of the total amount spent, he must maintain the receipt for the down payment made when acquiring the policy, as well as any subsequent receipts.

The option to pay health insurance premiums on a monthly basis provides flexibility and control for individuals and families. It allows policyholders to manage their financial obligations effectively, making insurance coverage more accessible to a wider range of people. While there may be several disadvantages, such as potential higher overall costs and the risk of coverage lapses, diligent management of payments can mitigate these risks. 

A health insurance premium calculator in India is a convenient tool you may utilise online to check the amount of coverage required based on your needs.

The option to pay health insurance premiums on a monthly basis offers flexibility and convenience to policyholders. This payment approach can make insurance more accessible and manageable for individuals, ensuring that they can maintain their coverage without facing a significant financial burden. Whether you choose to pay premiums monthly or annually, having health insurance provides vital protection for your well-being and financial security. Ultimately, the ability to tailor your premium payment schedule to your needs enhances the accessibility and affordability of healthcare coverage, promoting a healthier and more secure future.

*     Standard T&C Apply

**     Tax benefits are subject to change in prevalent tax laws.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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