Health emergencies can arise without warning and can lead to significant financial burden if unprepared. A mediclaim policy, also referred to as a health insurance policy, acts as a safety net against such unforeseen events. However, one of the most common concerns for policy buyers is the affordability of the premium, especially when the policy covers the entire family or includes senior citizens.
To address this, many insurers in India now offer monthly premium payment options for mediclaim policies, making quality healthcare more accessible without the strain of a lump sum payment. This article explores the key benefits, features, and important considerations of choosing monthly premium payment modes for health insurance.
What is a mediclaim policy
A mediclaim policy is a type of health insurance that reimburses or directly settles the cost of hospitalisation and medical expenses incurred due to illnesses, accidents, or surgeries. It covers expenses like:
- In-patient hospitalisation
- Pre- and post-hospitalisation costs
- Daycare procedures
- Ambulance charges
- Cashless treatment at network hospitals
A health insurance policy may also include add-ons such as critical illness cover, maternity benefits, and wellness services, depending on the plan selected.
Why monthly premium payment is a useful option
Traditionally, health insurance premiums are paid annually, which may feel financially burdensome for some individuals or families, especially those with variable income or other financial commitments. Monthly payment options help ease this by:
- Making premium payments more affordable
- Allowing better cash flow management
- Enabling young earners and middle-income groups to opt for higher coverage
- Making it easier to continue long-term policies without default
With monthly instalments, policyholders can maintain uninterrupted coverage without the need to pay a large amount upfront.
Who should consider monthly premium mediclaim policies
Monthly premium payment plans are ideal for:
- First-time policy buyers with limited savings
- Freelancers or gig workers with variable income
- Salaried individuals managing multiple EMIs
- Families seeking health insurance policy coverage for all members
- Senior citizens who wish to avoid lump sum premium payments
By opting for monthly payments, the policy remains active and accessible even when managing other recurring financial obligations.
Mediclaim policy features available with monthly premium options
While each insurer may have specific terms, most mediclaim policies offering monthly payment include the following standard features:
- Coverage from Rs. 1 lakh up to Rs. 1 crore or more
- Cashless hospitalisation across a wide network
- Pre-existing disease coverage after waiting period
- Free annual health check-ups
- Lifetime renewability
- Tax savings under section 80D of the Income Tax Act
- Digital policy issuance and claim filing
Some plans also include optional features such as no-claim bonuses, room rent upgrades, second opinion cover, and wellness benefits.
Advantages of choosing monthly premium health insurance policy
1. Affordability and flexibility
Paying premiums in small monthly instalments allows policyholders to maintain health cover without straining their finances. It’s especially helpful during inflation or personal financial constraints.
2. Continuous coverage
Opting for a recurring payment option via ECS or auto-debit ensures that your health insurance policy stays active without the risk of missed payments or policy lapses.
3. Access to high sum insured plans
Monthly payments make it easier to afford higher coverage amounts that would be expensive if paid annually. This is crucial when buying mediclaim policy for families or elderly parents.
4. Ideal for younger earners
Individuals in their 20s or 30s often face competing financial goals such as EMIs, savings, and investments. Monthly plans allow them to start early with comprehensive coverage.
5. No compromise on features
Most monthly premium plans offer the same features and benefits as annually paid policies, including cashless treatment, pre- and post-hospitalisation expenses, and emergency coverage.
Important considerations before choosing monthly premium mediclaim policy
While monthly instalment options are convenient, keep the following points in mind:
- Total premium may be slightly higher due to additional administrative charges or GST computation
- Defaulting on a monthly payment may result in policy lapse or penalties
- Discounts available on annual premiums are usually not applicable in monthly mode
- Ensure your bank mandate or auto-debit authorisation is active and funds are sufficient to avoid missed payments
- Check whether the insurer provides monthly payment on all plans or only select policies
Commonly covered expenses under monthly premium health insurance
Even with monthly payment options, the core benefits of a standard mediclaim policy are retained. These typically include:
- Hospitalisation for more than 24 hours
- Surgeries and ICU charges
- Doctor consultation and medical tests during admission
- Pre- and post-hospitalisation for 30 to 60 days (varies by plan)
- Domiciliary treatment (if covered)
- AYUSH treatments (on select policies)
- Daycare procedures such as cataract or dialysis
How to buy a monthly premium health insurance policy
Purchasing a health insurance policy with a monthly premium option involves the following steps:
- Assess your medical needs: Consider your age, family size, pre-existing diseases, and hospital preferences
- Use online comparison tools: These allow you to filter plans based on premium frequency, sum insured, and other features
- Read the policy terms: Check the waiting period, co-payment clause, and sub-limits
- Select monthly payment: At checkout, choose ‘Monthly’ under payment frequency options
- Set up auto-debit or ECS: Ensure you have adequate balance each month for timely premium deduction
- Keep documents handy: Identity proof, address proof, recent photographs, and medical history, if applicable
Conclusion
Opting for a mediclaim policy with monthly premium payment is a financially prudent decision, particularly for those who want comprehensive coverage without bearing a high upfront cost. Whether you are an individual buyer or looking to secure a health insurance policy for your entire family, monthly installment plans make it easier to manage healthcare expenses while ensuring continued protection.
With flexible premium options now widely available in India, buyers can select plans that align with both their medical and financial needs. Just ensure that the plan offers robust features, a good hospital network, and favourable claim processes before making your final decision.