More Indians are now paying for health insurance in small instalments. According to reporting by Fortune India, 13% of customers choose to pay their premium as an EMI.
For you, this means a large yearly premium no longer has to dent your budget. But check the total cost first, because paying in parts can cost a little more.
Key takeaways
- Subscription-style health insurance lets you split one premium into smaller regular payments.
- Fortune India reports that 13% of customers now pick instalments.
- Monthly payments ease your cash flow, but some plans add a small extra charge.
- A missed instalment can put your cover at risk, so set up reminders.
- Compare the total you'll pay in a year, not just the monthly amount.
How subscription-style health insurance works
EMI means equated monthly instalment. It's a fixed amount you pay on a fixed date each month. With health insurance, the idea is simple. You divide your yearly premium into smaller parts instead of paying it all at once.
The parts can be monthly or quarterly. Many plans pull the money from your bank account or card on their own. That's why people call it a subscription, much like a streaming plan.
India's insurance regulator, IRDAI, lets health insurers offer premium payment in instalments. Each insurer sets its own terms, though. So the price of paying in parts can differ from one company to the next.
The Fortune India report says this model is gaining traction. We only know the headline figure of 13%. We don't know how each insurer prices instalments. So treat any 'no extra cost' claim as something to verify.
What changes for you: a worked example
Say your family's health policy costs ₹24,000 a year. Here's how different ways of paying could look. These numbers are only an illustration. Your insurer's charges may differ.
| Payment mode | Amount per payment | Payments a year | Total paid in a year |
|---|---|---|---|
| Yearly, one go | ₹24,000 | 1 | ₹24,000 |
| Quarterly, no extra charge | ₹6,000 | 4 | ₹24,000 |
| Monthly, no extra charge | ₹2,000 | 12 | ₹24,000 |
| Monthly, 5% extra charge | ₹2,100 | 12 | ₹25,200 |
The last row shows the catch. A 5% extra charge adds ₹1,200 a year. It looks small each month, but it adds up. You can test your own numbers with an EMI calculator.
Also watch where the instalments come from. If you pay by credit card and carry a balance, interest can make the cost much higher. Our personal loan guides explain how that kind of interest builds up.
Who is affected
This matters most to people with tight monthly budgets. Think of gig workers, small shop owners and young families. A ₹2,000 monthly payment feels lighter than a ₹24,000 bill.
It also helps people who want higher cover but worry about the upfront cost. Parents buying a policy for older relatives are a good example. Their premiums are often large.
If you already have spare cash, the benefit is smaller. You may be better off paying once a year and skipping any extra charge.
What to do now
Before you pick instalments, run through this short checklist:
- Ask for the yearly price and the instalment price side by side.
- Find out if there's any extra charge, fee or interest.
- Check what happens if one payment fails. Ask about the grace period.
- Confirm that your cover continues without a gap while you pay in parts.
- Set a calendar reminder a few days before each due date.
If you pay through a card EMI, compare its cost with our interest rate tables. And keep an eye on our news hub for updates.
Frequently asked questions
Does paying health insurance in instalments cost more?
Sometimes it does. Some insurers add a small charge for monthly or quarterly payments. Always compare the total for the year.
What happens if I miss an instalment?
Your policy may enter a grace period. If you still don't pay, the cover can lapse. Read your policy terms to know the exact days.
Is an insurance EMI the same as a loan?
Not always. Paying the insurer in parts is a payment option. A card EMI or a personal loan is separate borrowing and carries interest.
BankCreds analysis
What the 13% really tells you
This is a payment-habit story, not a price cut. Your premium stays the same or goes up. Instalments only change when you pay.
The real risk is a lapse. Imagine a family paying ₹2,100 a month. If two debits fail, the policy may lapse just when a hospital bill arrives. A ₹3 lakh claim then hangs on one bank debit. Pay yearly if you can, because it's cheaper and safer.
Also, the headline means most buyers still pay in one go. Don't feel pushed into a plan because it's popular. Instalments suit tight cash flow. They don't suit someone who wants the lowest cost.
One good habit: keep one month of premium in your account at all times.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Fortune India — originating report https://www.fortuneindia.com/personal-finance/subscription-based-emi-model-gains-traction-in-health-insurance-13-customers-opt-for-instalments/164067
- IRDAI — insurance regulator that sets rules for health insurance premium payment options https://irdai.gov.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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