Premium in Installments : Is Health Insurance Premium Payment in Installments Possible?

Health insurance is a necessity these days, which most people have realized, especially after the outbreak of Covid-19. But, there are many people who find it difficult to make one time pay of their health premiums and thus stay away from the benefits of health plans. So, to make it affordable for common people to buy and enjoy the benefits of health insurance, the IRDA or the Insurance Regulatory and Development Authority of India has guided insurance companies, especially the standalone health plan providers as well as general insurance providers to allow insurance seekers to pay for their health insurance premiums in installments.

Which health insurance companies are offering installment facilities for paying policy premiums?

Below are some of the companies offering health insurance monthly premium or health insurance installment facilities for payment of premium:

1. Bajaj Allianz General Insurance Co. Ltd
2. Bharti AXA General Insurance Co. Ltd 

The above are two reputed companies offering installment facility for health insurance monthly payment of premium for insurance seekers .

Bajaj Allianz General Insurance Co. Ltd offers installment facility with its Bajaj Allianz Health Guard health insurance plan. They offer this facility for both family as well as individual plans. Under this plan, the insurance seeker can pay the installment of premium amount either on monthly or quarterly basis as well as on six monthly or annually.

How the Health Insurance Installment Payment option functions?

So with installment facility if an insurance seeker wants to opt for paying the premium in installments, the insurer sends the installment payment receipt for premium payment to the policyholder. As and when an installment is paid to the insurer, the policyholder receives the receipt for all the succeeding installments.

Moreover, if for any reason the insurance policy holder cannot pay the premium for a certain installment on the precise date, a grace period of 15 days is also allowed to the policy holder to make the payment. And if the policyholder could make the payment successfully within that period, he/she can still enjoy the accumulated benefits of cumulative bonus that is collected on your policy as well as the benefit of waiting period.

How are claims paid for policies that are available on monthly Installment Premiums?

This is something very interesting and important for an insurance policyholder to know if he/she is paying for the premium on installment basis. In this case, if the insured individual who is paying the premium installment on monthly basis has already paid for 3 or more installments, in that case the insurance company must accept the claim for any health emergency of the insured.

However, in this case the insured person is required to pay the remaining amount of the premium as a single payment. If not paid so, the insurer might deduct the amount from the claim amount that is payable.

So, in this case the insured people who pay premium on installments will not impact the claim settlement process if the insured pay the balance premium amount at one go. However, not doing so might lead to deduction of the amount from the next claim amount.