Over a year, the world around us has changed more than at any other time in our lives. Covid-19 has evolved into a global pandemic that is rapidly destroying lives, jobs, global economies, and personal wealth. It has brought major changes in people’s livelihoods and their lifestyles. In these unprecedented times, the need to secure the health of your loved ones should be prioritised, especially with the inflation in medical costs. The most efficient way you could do that is by investing in an adequate health insurance plan which would safeguard you and your family at the time of medical emergencies.

But, as we all are aware, one of the significant impacts of the pandemic has been massive job losses and major pay cuts across all sectors, putting people in a financially difficult situation. Which, in turn, has made it difficult for many to pay their insurance premiums. Given that, many of you might settle down for low-sum-insured plans as shelling out a large amount of money at this time is difficult. However, you no longer have to compromise, as the availability of equated monthly instalments (EMI) has made it quite affordable. In this financial crunch, you can now pay your health insurance premiums in instalments instead of an annual lump sum.

The primary objective behind the introduction of this provision by the Insurance Regulatory and Development Authority of India (IRDAI) was to make health insurance plans much more affordable given the ongoing crisis.

Following are reasons why buying a health insurance plan on the EMI option can be beneficial for you.

1. Higher coverage

It is no secret that Covid-19 is spreading like a wildfire all over the world. And not just a single member but, multiple members in a family are getting infected. A 15-day stay in a super-speciality hospital in the national capital can cost as much as Rs 10 lakh per person. As a result, more people are re-evaluating their health insurance needs. Given that, people are slowly moving towards high-sum insured plans, which you can now easily afford with the availability of the EMI option. Now, you no longer require to compromise on availing a good quality treatment as the benefits can be availed by paying the premium in instalment. For instance, a 1 crore health plan for 30-year-old individual costs, approximately Rs 600-800 per month.

2. Boosts accessibility

Through the EMI option, not just the urban population but people living in rural areas as well can have the accessibility of buying insurance. As buying it on an EMI basis can be a lot cheaper and beneficial for them. Because you don’t need to pay a hefty amount in just one go, which will keep your monthly budget in balance and also give you financial protection at the same time in these tough times.

3. Beneficial for senior citizens

It is recommended for senior citizens to have individual medical insurance as they tend to be more prone to diseases and other serious ailments. Given how much insurance might be not an affordable option for all as the age factor increases the cost. In such situations, EMI is an attractive and affordable option for those with limited monthly income. Pocket-friendly health insurance EMIs enable them to avail themselves of the best-in-class medical treatment without having to worry about managing their finances.

4. Online payment mode

During these times when everyone is following social distancing norms, you can easily pay your health insurance EMI’s online without any hassle. It is a smooth process for the customers and saves them a lot of time as well. In addition to that, you would also receive reminder alerts about your EMIs when due, and choosing an auto-debit option ensures that you don’t miss out on an EMI payment.

5. Tax benefits

Section 80D of the Indian Income Tax Act, 1961 allows you to claim a tax deduction for up to Rs 50,000 in premiums paid as EMIs on your Mediclaim policy.

What Should You Do?

It is advisable to buy insurance on EMI basis as it will ease the whole process. Making it accessible to everyone without disturbing their finances, especially in these critical times. In addition to that don’t have to compromise anymore and can get the best health treatments without any hassle. In addition, according to market trends, about 40 to 45 per cent of first-time health insurance buyers prefer to pay their premiums in monthly instalments.

The author is Head-Health Insurance, Policybazaar.com

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.