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Pay Health Insurance Premiums In Instalments Soon

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Young investors, especially salaried individuals, may find it hard to pay health insurance premiums if they have to pay their health insurance premium annually as a lump sum. To avoid having such a significant financial liability; therefore, chances are that you may have to go for an inadequate health plan cover so that the yearly premium payment does not cause a hole in your pocket.

However, considering this problem of policyholders, Insurance Regulatory and Development Authority (IRDA) recently launched a circular stating that now premium towards health insurance policy can also be paid on a monthly, quarterly, or half-yearly basis. This new step has been welcomed by industry as well as policyholders alike.

A significant sickness can strike your loved ones or you at any time. That is why a health cover is crucial for your loved ones and you. It acts as a security net against costly medical expenses associated with various health issues, by providing you with financial support either through cashless hospitalization or reimbursement. It is vital that to maintain security against illnesses, you continue paying health insurance premiums to have an active policy. 

But many of you find it hard to pay annual health insurance premium towards the end of the policy term as the lump sum amount is a significant sum of money. Towards the end of your policy year, you may not be able to arrange for the lump sum money. As a result, you face the risk of policy lapse. This exposes you to financial risk as well as adds to your hassle of renewing the policy later.

 

Changes Introduced by IRDA

Keeping the policyholder’s challenge in mind, IRDA has come up with new premium payment frequencies to ease the payment obligation. As per the circular shared by IRDA, the policyholders can now pay a premium towards their health insurance policy as per the frequency that aligns with their payment capabilities.

The main idea behind doing this is to make insurance more affordable for policyholders concerning the convenience of premium payments. However, despite

The various payment frequencies offered by the insurer are as follows-

 

Monthly

The relationship between frequency and payment amount is inverse. So, if you go for a monthly payment option, you will have to take out a relatively much lesser sum of money each money. The overall payment, however, as a whole, will be equal to the amount you pay under other frequencies.

 

Quarterly

The second payment frequency option that has been introduced is the quarterly mode. So, if monthly payment looks too frequent, then you can go for a quarterly payment. Under this frequency, you will have to pay a premium towards the policy every once in 4 months.  

 

Half Yearly

Another frequency introduced for policyholders is the half-yearly payment mode. In this, you will have to make premium payments twice a year. This means you will have adequate time to set aside money for your half-yearly payment amount after the first payment.

How will it Benefit You?

This new change, as stated by IRDA, is a good move that has many benefits in store. Some of the benefits are as follows-

 

  1. More affordable- When the premium payment frequency is relaxed, then it will also bring down the amount to be paid in each payment. This will automatically make it more affordable for policyholders to keep their policy active.

 

  1. More Flexibility- The option of meeting with the premium payment in more than one way (lump sum) as earlier will ease their payment burden and enable them to have a more positive approach towards buying and maintaining a health insurance policy.

 

These benefits together make the health insurance policy a convenient plan to have and maintain.  The changes introduced will also make more potential health insurer buyers purchase the plan. In turn, this will lead to higher penetration of insurance in the country, which will secure many more lives.

However, it must be remembered that a change in Instalments does not lead to a change in the necessary premium amount that needs to be paid and charging structure for a specific plan.

So, buy a health insurance plan and choose Instalment as per your needs and payment capabilities. However, whatever is your Instalment; always pay it soon, so that you do not end up losing out on your security.

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