Health Insurance on EMI

Top Critical Differences Between Health Insurance on EMI and Monthly Subscriptions

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Healthcare expenses are rising all the time, and they can drain the savings of a family in no time. In this era, patients with hypertension are common, while cardiac arrests and other critical illnesses have almost become a part of our everyday lives. With this uncertainty constantly looming, getting your health insurance on EMI or using a monthly subscription plan is always a prudent option.

Monthly subscriptions are the best option for short-term users who are checking on how the services are provided by the insurers. On the other hand, EMI allows you many costly health covers at reasonable monthly costs. For this reason, many insurance companies are now rising that allow paying premiums on a quarterly, monthly, or yearly basis. 

Pros and Cons of Health Insurance on EMI and Monthly Subscriptions

Due to the ongoing global pandemic (COVID-19), it has become even more important to address the demands for comprehensive health insurance plans. To make it easier for applicants, numerous health insurance companies now offer health insurance on EMI which keeps their users free from making a one-time “lump sum” premium payment.

Monthly Subscriptions - Health Insurance on EMI

This plan makes it easier for the applicants to opt for higher insurance cover(s) while paying premiums using an installment plan. Health insurance on EMIs has been incorporated by the insurance companies because one-time premium payments are burdensome, and for the same reason allow multiple frequencies for premium payments to customers. 

Other premium frequency options, like monthly subscriptions, allow the customers to buy a larger cover which was either postponed due to a shortage of funds or had to compromise by opting for a lower-cost health cover. This system has been beneficial for senior citizens as well because now they need not pay a huge amount in one go, but in monthly amounts, with their monthly pension(s) and/or other sources of income(s).  

The Pros and Cons [Monthly Subscriptions]

Advantages

Effectiveness

Monthly subscriptions have been introduced because several reports show that there are a large number of people who are covered by government schemes as well as group policies from top health insurance companies that make use of monthly subscriptions. However, the market for individual health insurance has fallen, even marginally.

Utility

They have also proved to be useful because they allow people to afford health covers, during these trying times, by paying small amounts each month. They are of huge help to the people who live in remote areas as the premium then becomes affordable for them. People, who until now, did not have health covers in their insurance policies can now easily opt for it at manageable rates. 

Online Payments

Online Payments - Health Insurance on EMI

IRDAI (insurance regulatory and development authority of India) proposed this plan since most people find it extremely burdensome to pay the premium at once. Furthermore, it is important and preferable to buy health insurance online,  during this ongoing COVID-19 pandemic because monthly subscriptions can be easily paid through online transactions, thus maintaining proper social distancing. 

Changing the Plan

Another positive side to monthly subscriptions will help the policyholder to change to an affordable health insurance plan at the time of the renewal. It can be an annual one or a monthly one.

Disadvantages

Amount Paid

You end up paying more than required.

Claim

You cannot claim before a year of paying subscriptions.

The Pros and Cons [EMI]

Advantages

Family Cover without The Financial Burden

There are many family floater plans that have this option available. Since medical issues can arise at any point in time, you can protect your loved ones with covers such as health combo plans. These offer the benefit of availing of high-cost medical treatment at any of the network hospitals. Health insurance on EMI will also help you to add a new family member to your existing family floater plan with a nominal additional premium price.

Affordable Cardiac Care

Cardiac Care - Health Insurance on EMI

Cardiovascular problems are on the rise due to cases of hypertension and stress rising across the globe. As a result, cardiac care health insurance has become the most popular among all insurance policies. Cardiac health covers from top health insurance companies are almost always beyond the financial reach of the average individual. Health insurance on EMI makes these extremely necessary policies easily accessible. 

Tax Exemption Benefits

Health insurance on EMI provides a lot of tax benefits based on Section 80D of the Income Tax Act of 1961.

Higher Health Cover

Despite the fact that there is some difference between the premium amount paid in installments and the calculated monthly premium amount for a lumpsum amount, the difference between the two is marginal. So you can still enjoy affordable health insurance without having to forego all of your savings.

Disadvantages

Payment Regularity

You must ensure that you make payments every month without fail.

Why do people tend to prefer monthly subscriptions over EMIs?

  1. It is preferable to opt for a health cover on monthly subscriptions as opposed to EMIs, because the latter will always make the cost go higher. This is because in case of a health cover purchased on EMIs, the policyholder has to pay an amount that is higher than the actual amount. This is because the interest gets added to the premium amount.
  2. The customer has to keep paying the instalments for an entire year before they finally become eligible to claim the insurance cover.
EMI - Health Insurance on EMI

These premium payment measures have been introduced to lessen the burden on the users. Though these two have a couple of differences, both allow individuals with medical emergencies to rid themselves of humongous medical bills. Simply, keep the differences in mind when buying health insurance online.

If you are looking to purchase health cover using a monthly subscription plan, then make sure to check out Vital Health Cover. They provide the option of paying the premium amount in monthly installments, coverage from day one, and a host of other benefits.

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