Ketan Mankikar is revolutionizing the insurance industry with a focus on transforming it for the new generation. He understands the evolving needs and preferences of younger consumers and is working to make insurance more accessible, user-friendly, and tailored to their lifestyles. By leveraging technology and innovative approaches, Ketan aims to bridge the gap between traditional insurance models and the expectations of modern customers, ultimately creating a more inclusive and relevant insurance ecosystem for the next generation.

by | May 12, 2025 | Care, Edelweiss Tokio, Insurance

The Indian insurance industry has undergone significant changes over the past decade, driven by policy changes, digital platforms, and shifting consumer mindsets. Marketing has become more data-driven, customer-focused, and digitally integrated, enabling personalized...

EMIs in Health Insurance: Understanding the Essentials Before Opting for Installment Plans

Equated Monthly Installments (EMIs) in health insurance allow policyholders to pay their premiums in monthly installments instead of a lump sum. Here’s what you should know:

How EMI Works in Health Insurance

  • Premium Payment: The annual premium is divided into 12 equal monthly installments.
  • Interest Charges: Most insurers charge an interest rate on the installment amount, which can range between 1.5% to 2% per month.
  • Payment Term: The payment term typically spans the entire policy year, usually 12 months.

Benefits of EMI in Health Insurance

  1. Cash Flow Management: EMIs help in managing cash flow by allowing policyholders to pay premiums in smaller, manageable amounts.
  2. Increased Affordability: Larger premium amounts are broken down, making health insurance more accessible to a wider audience.
  3. Reduced Financial Strain: Paying in installments can ease the financial burden, especially during times of financial crunch.

Things to Consider Before Opting for EMI

  1. Interest Rates: Understand the interest rate charged and calculate the total amount you will pay over the year.
  2. Penalty for Late Payments: Missing an installment can attract late payment fees or penalties.
  3. Policy Terms: Some policies might have specific terms or restrictions when opting for the EMI payment plan.
  4. Claim Process: Understand if the EMI plan affects the claim process or the coverage in any way.

Calculating EMI Premiums

  • Example: If your annual health insurance premium is ₹24,000 and the insurer charges an interest of 1.5% per month, your monthly EMI could be approximately ₹2,150.
  • Considerations: Always factor in the interest and any additional charges when calculating your EMI.

Choosing the Right EMI Plan

  1. Assess Your Budget: Ensure that the monthly installment fits within your budget.
  2. Interest Comparison: Compare interest rates among different insurers to get the best deal.
  3. Policy Coverage: Ensure the policy offers comprehensive coverage despite the payment plan.

Opting for an EMI plan in health insurance can be beneficial for managing premiums, but it’s crucial to understand the terms, interest charges, and potential penalties before making a decision.

by | May 11, 2025 | Insurance

The concept of Equated Monthly Instalments (EMIs) has expanded beyond buying homes and cars, and is now being used to purchase health insurance policies. With medical inflation on the rise, health insurance premiums have increased significantly, making EMIs an...