Until recently, all health insurance premiums were to be paid yearly, but now the health insurance policyholders can choose to pay the premiums monthly, quarterly, or even half-yearly. So, if you have opted to pay the premium in monthly instalments for your health insurance, you must be aware of the following situations that may arise during the policy tenure.
Read on to know more:
Situation 1:
Will, the request be rejected in case the claim is made before the premium for a year is paid?
So, the answer to this question is that the insurer cannot deny the claim in case if the policyholder chose to pay in instalments. The claim must be processed, although if the insurer had paid the premium for only two months. But if such a case arises, the insured will have to pay the remaining premiums in one go, or the insurer will deduct the remaining compensation from the sum assured.
Situation 2:
Will the premium amount be higher or differ in case if the insured opts for instalment payments?
As per the IRDAI, the premiums that are collected in instalments, whether quarterly, half-yearly, or monthly, the basic premium remains unchanged. However, the total premium can be increased based on your plan type.
Situation 3:
Can you change your health insurance premium payment mode for your existing policy?
You can choose to change your premium in instalments for your existing policy but not in the interim period. You can opt to change the mode of payment only at the time of renewal of the policy. Those opting for a change in the payment mode will have to mention the same in the insurance provider’s form at the time of policy renewal.
Situation 4:
Will the free look period be shorter in case of instalment payments?
Generally, the free look period in case of annual premium payment is 15 days, but the free look period is too short in case of instalment payment. The Free-look period is when the policyholder can terminate the policy or discontinue the policy without paying any penalties.
Also, the relaxation of premium payments procedure in health insurance plans has a lot of benefits. Let’s check out how instalment payment can be beneficial.
What are the benefits of choosing instalment payments
Owing to the change in premium payment, health insurance has become more affordable. With higher affordability, health insurance policy will be more accessible, even in rural areas.
With the relief in the premium payment, people will find it easier to pay the premium and opt for higher health insurance coverage.
The online premium payment option has made the process of paying the premiums even simpler. Policyholders can now pay the instalments online easily.
Flexibility in premium payment has helped the policyholders choose a higher sum assured sum. This situation is far better than before, where policyholders chose lesser sum assured to reduce the burden of premium.
With the increase in demand for health insurance plans, the insurance companies would be motivated to come up with different offers and design other health insurance products.
Even senior citizens can buy health insurance plans with higher coverage with their limited income.
Final words
The change in annual premium payment to instalment payment has made it affordable for lower-income groups. People are now more inclined towards buying health insurance plans with easy instalment payment options.
