The hassle of paying a hefty premium on health insurance is over! Now you can pay like Netflix subscription. IRDAI allowed monthly premium payment for health insurance in September 2019. Now the health insurance company is offering Vital Monthly Health Insurance Policy (Health Insurance Policy). Under this, only a few rupees will have to be paid every month in place of the annual premium.
At the age of 30, you have to spend Rs 13,000 on health insurance of Rs 20 lakhs every year. Most people are hesitant to take a health insurance policy because they are not ready to pay such a huge amount in one go. But now the solution to the problem of such people has come. Vital Health Insurance is offering monthly subscription plans for such people in the digital health and wellness market. You have to pay its premium-like your Netflix subscription or EMI. Insurance regulator IRDAI allowed monthly premium payments for health insurance only in September 2019.
More people will be able to take advantage of health insurance
Vital has taken many things into consideration in preparing this monthly subscription plan. Life insurance companies usually offer monthly, quarterly, or yearly payment options to pay premiums, but annual premiums have to be paid on health insurance. Vital says that under the monthly subscription model, a person can deposit the premium of his health insurance every month. This will help everyone to take advantage of the health insurance policy. With this, the penetration of health insurance in the country will also increase.
Average health insurance cover will increase
The company says that as it will be economical, the average insurance cover will also increase. Currently, on average, most people take a health insurance cover of around Rs 3 lakh. However, the average insurance size in the monthly premium payment model on the Vital platform is Rs 10 lakh.
Vital has a tie-up with care health insurance to provide health cover (formerly known as Religare Health Insurance) is. Vital is working closely with Bharti AXA, ICICI Lombard, and Care Health for group policy.
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How to get monthly health insurance?
If you understand with the help of the above example, then a 30-year-old person will have to pay a premium of Rs 700 every month on health insurance of Rs 20 lakh. According to this, it will be easier to pay 700 rupees every month as compared to the payment of Rs 10,000 once a year.
Option to reduce premium every month
Apart from this, Vital also offers a ‘deductible’ facility, which will help to reduce the cost further. The deductible will be the amount that will be spent in a year as a health expenditure before the commencement of health insurance plan coverage. The higher the deductible, the lower the premium. If you understand this with the help of an example, then suppose that a 30-year-old person adds another 35,000 rupees to the policy cover of Rs 20 lakh, then the premium of Rs 700 will be reduced to around 300 rupees every month. On a deductible of Rs 1 lakh, the premium for every month will be reduced by Rs 230.
If you look at the current situation arising out of Covid-19, the benefit of monthly health insurance will be available to those who have recently lost their jobs or whose salary is being cut.