Health insurance: Monthly premium payment is possible

Many individuals, especially salaried workers, prefer to pay their health insurance premiums on a monthly basis to make it more affordable and cover higher sums. You can ensure the health of yourself and your family while maintaining sufficient liquidity.

The monthly premium payment mode is also useful for the elderly as they have to pay higher premiums. Currently, there are four payment methods for health insurance premiums: monthly, quarterly, half-yearly, and yearly. Policyholders should review the bylaws when paying health insurance premiums in installments, especially in monthly and quarterly modes.

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Monthly health insurance is more expensive than yearly premiums. The policyholder has to pay 5-10% more premiums in monthly mode than in yearly mode, and he has to purchase a policy with a policy term of 2 years or more. Policyholders are not eligible for certain discounts in annual payment mode.

Additionally, the monthly premium mode provides a 10-day grace period if the policyholder fails to pay the premium on time. If you pay within the grace period, you will get a cumulative bonus. Ideally, the insured person sets up a direct debit mandate in his or her bank account to ensure that monthly premium payments are not delayed.

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Premiums paid in monthly or quarterly mode do not affect the claims process. Even if the policyholder has paid a month’s premium, the insurer still has to process the claim, but to settle the claim, the policyholder must either pay the full outstanding premium in advance or The company must deduct the balance premium for that year from the premium. Total amount billed.

Policyholders may claim the tax benefits under Section 80D on the full premium paid, at any payment frequency. He should keep the down payment receipt from when the policy was purchased and any subsequent receipts to track the full amount paid.

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