Policybazaar data shows 13% of health insurance customers opt for EMI payments

Around 13% of customers at insurance marketplace Policybazaar are opting to pay health insurance premiums in monthly or quarterly instalments, according to data shared by the company, indicating demand for payment options that spread the cost of coverage over time.

The average annual premium or EMI ticket size for these customers is ₹17,500, the company said. The data relates to Policybazaar’s customer base and does not represent the overall health insurance market.

Under the instalment-based model, customers can purchase multi-year health insurance policies while paying premiums periodically instead of making the entire payment upfront.

For instance, a three-year policy with an annual premium of ₹12,000 would cost ₹36,000 over the policy term. If the payment schedule permits equal monthly instalments without additional charges, the outgo would be ₹1,000 a month over 36 months.

The arrangement can help households spread their insurance expenses, but the payment schedule, applicable charges and consequences of missed instalments depend on the insurer’s policy terms.

Multi-year policies may also provide greater certainty about premiums during the policy term, subject to the terms and conditions of the contract.

However, the premium payable at renewal can change, and locking in a policy for several years does not necessarily mean that all costs or benefits will remain unchanged under every product.

“Health insurance is gradually moving beyond the traditional annual purchase-and-renewal cycle towards a more flexible, long-term protection model,” said Rohan Goel, Business Head, Health Insurance, Policybazaar.

The shift towards instalment-based payments comes amid efforts to make health insurance more affordable. The reduction in GST on individual health insurance premiums has also lowered the tax burden on eligible policies.

While smaller periodic payments may make premiums easier to budget for, customers should check whether instalments attract additional charges, what happens if a payment is missed, and whether the policy provides uninterrupted coverage throughout the term.