ADVERTISEMENT

Now, Pay Your Health Insurance Premium In EMIs

Health Total plan gives policyholder option to pay premium in EMIs EMI option is available on policy of Rs 3 lakh and more This option is available only for policy tenure of more than one year

Now, Pay Your Health Insurance Premium In EMIs

Buying a medical insurance plan has become easier. You can purchase it through equated monthly instalments (EMIs).

Future Generali has launched a new product called Health Total in which a policyholder has the option to pay premium in monthly, quarterly and half-yearly instalments.

Experts have welcomed the move, saying that EMI option will make health insurance more affordable and could encourage people to go for a higher sum assured. "It's very useful for a policyholder for whom say Rs 10,000 is a big pinching amount to pay at one go," said Yashish Dahiya, co-founder and CEO of PolicyBazaar.com.

However, there are a few things that the policy buyer should note about the Future Generali policy. The EMI option is available for policies with a sum assured of Rs 3 lakh and more. Also, it is available only for a policy tenure of more than one year - that is two and three years.

The option of paying premium through instalment also comes at a cost. The premium charged is higher than the standard rates. For the monthly premium option, the policyholder will have to pay 5 per cent more than the standard rates.

What if the policyholder makes a claim? The insurer will deduct the remaining premium left for the one-year period from the claim amount. For example, if you opt for a monthly instalment option of Rs 3,000 and make a claim of Rs 1,50,000 after paying instalments after eight months, Rs 12,000 will be deducted from the claim amount towards the four remaining instalments. In this case, the policyholder will be paid Rs 1,38,000 (Rs 1,50,000 - Rs 12,000) . The regular monthly instalment will again start from the 13th month.

The existing policyholders of Future Generali can switch to this option, said Shreeraj Deshpande, head of health insurance at Future Generali India Insurance.

Reliance General Insurance, according to reports, has also launched products that offer premium payments through the EMI option.