The IRDAI has permitted health insurers to allow their policyholders whose renewal premium is due from now till March 31, 2021, to pay this renewal premium in installments. Generally, the health insurance premium is payable annually. In September last year, IRDAI had permitted health insurers to deliver buyers the option of paying health insurance premium in installments- quarterly, monthly, or half-yearly and annually as well.
In view of prevailing conditions going to the Covid-19 outbreak, keeping in mind the need for easing the payment of health insurance premiums, all the insurers are permitted to gather health insurance premiums in installments, the Insurance Regulatory and Development Authority (IRDAI) said in a circular.
Reasons to Get Health Insurance Premium in Instalment
Affordable health insurance-
The easy half-yearly, quarterly, monthly, and annual installment system of paying the premium will deliver you the advantage of affordable care while protecting you against financial issues. You can generate high insurance coverage without having to give the complete premium amount in one go.
With an option to convert your premium payments into quarterly, monthly, half yearly and annual installments, you get the benefit of selecting from monthly or annual, half yearly, quarterly and annual premium payments, according to your convenience.
Thanks to quarterly, monthly, half-yearly, and annual installments, you will be able to gather higher liquidity, which is necessary during the ongoing crisis. Avail the advantages of health insurance while paying small monthly, half-yearly, quarterly, and annual installments, which will assist you in making sure the health of your family members and yourself while keeping adequate liquidity to match other expenses.
Continue to receive tax benefits-
The premium paid to get health insurance can be claimed in the light of section 80D* of the Income Tax Act. This can assist in decreasing your tax burden and end up saving money for other requirements.
Once you begin paying the health insurance premium on a quarterly, monthly, half-yearly, and annual basis, the pressure on your wallet will be lesser than a one-time payment. So, with the quarterly, monthly, half-yearly and annual installment facility, you can go for a higher sum insured and select to include more family members to one plan. Furthermore, if you consider to buy health insurance on EMI then it would be great for you financially.
“When it comes to customer satisfaction, IRDAI makes sure to always take care of the customers. For the welfare of its customers, the IRDAI has issued guidelines to standalone health insurers and general insurers offering health insurance products to start offering an option to people to pay the premium of insurance policies in installments rather in spite of a lump sum. This will be valid for health insurance policies that are due for renewal up to 31st March 2021.