No more worries about medical treatment! Get 3 years of health insurance by paying just ₹1,000 per month..

Health Insurance Subscription Model: Making health insurance accessible and affordable for Indian families is becoming a priority for the insurance industry. Following major decisions like the recent reduction in GST rates on health insurance premiums, a new, innovative model is rapidly gaining popularity within the industry: the subscription-based EMI model for health insurance.

Under this new model, customers can secure multi-year coverage (up to 3 years) by paying premiums in monthly or quarterly installments, according to their convenience. According to data from Policybazaar, approximately 13% of customers in the country are now opting for monthly or quarterly EMI options instead of making a lump-sum payment.

How does this health insurance EMI model work?

This model links multi-year health insurance coverage with easy installments. Instead of paying a hefty lump-sum amount upfront, customers pay the premium in smaller, manageable portions.

To illustrate, suppose the total premium for a 3-year health insurance policy is ₹36,000 (i.e., ₹12,000 per year). Under the traditional method, you would have to pay the entire ₹36,000 at once. However, with this EMI model, you can maintain the 3-year coverage by paying an installment of just ₹1,000 per month for 36 months.

Growing popularity among customers

According to recent data released by Policybazaar:

Average annual premium/EMI ticket size: ₹17,500

Customers opting for EMI: 13% of consumers are now choosing monthly or quarterly payment options.

This trend indicates that people now prefer managing their health insurance premiums alongside their monthly budgets and other household expenses. Relief from annual premium hikes of up to 10%

Another major advantage of opting for a long-term policy with installment-based payments is that your premium remains fixed for three years. Typically, premiums rise by up to 10% annually at the time of renewal due to factors like aging or medical inflation. A multi-year plan shields you from this annual increase.

Commenting on this shifting trend, Rohan Goyal, Business Head of Health Insurance at Policybazaar, said, "Health insurance is gradually moving away from the traditional 'annual purchase and renewal' cycle toward a more flexible, long-term protection model. With multi-year policies and monthly or quarterly payment options, customers can secure coverage for the long term while easily managing the premium burden. This clearly indicates that consumers are now seeking more predictable and manageable ways to ensure their health security."

Top 3 benefits for customers

1. Financial relief: Smaller, predictable payment schedules combined with the benefit of a stable premium throughout the policy term.

2. Continuous protection: A long-term policy eliminates the risk of accidentally missing a renewal or facing a lapse in coverage.

3. Convenience and ease: Freedom from the hassle of annual renewals; simply make the right decision once and enjoy peace of mind for three years.

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