After the revamped health insurance products were launched in October, young individuals have started taking the advantage of monthly payment mode offered by the insurers, reveals a survey done by Policybazaar- an insurance marketplace.
In the age group of 25-30 years, around 30 percent of people bought health insurance through annual payment mode in the month of October, while during the same period, around 40 percent of people bought health insurance through a monthly payment mode, the survey said.
"The awareness around health insurance continues to rise in the country as in the months of September– November, around 30 percent people have taken health insurance through annual payment mode while almost 35 percent people opted for monthly payment mode to cover themselves under a comprehensive health insurance cover," said Amit Chhabra, head-health insurance, Policybazaar.
"A significant increase can be witnessed in the demand for health insurance products under monthly payment mode as it allows people to secure greater coverage without the burden of paying the entire amount as a lump sum. The EMI mode has increased affordability in health insurance," Chhabra added.
Coming to people falling under the age group of 31 – 40 years, as per Chhabra, the average age of people buying health insurance coverage in the months of September-November through annual payment mode and monthly payment mode is almost the same i.e. around 35 percent under each category.
"This indicated that the expenses of most people under this age group are quite sorted and people choose a payment mode as per their convenience.
Under the 51 – 65 age category, almost 25 percent of people chose to buy health insurance coverage through annual mode while 18 percent of people chose monthly payment mode to buy health insurance in the months of September-November," Chhabra said.
"It is also interesting to note that gradually people over the age of 50 years have started to buy health insurance through monthly payment mode as premium under this age category is significantly high and it is easier to pay the premium through EMI rather than paying as a lump sum," Chhabra opined.
Looking at health insurance buying trends in the top 20 metro cities which include Delhi, Mumbai, Kolkata, Chennai and Bengaluru, from the months of September-November, almost 60 percent of people bought health insurance through annual payment mode, with approximately 52 percent people buying through a monthly payment mode, according to Chhabra.
"Within a few months of the introduction of a monthly payment mode for payment of premium, the EMI mode has gained significant traction in the metro cities. People residing in metro cities are relatively more aware of the various benefits that insurers offer to customers while buying insurance products," Chhabra said.
From the top 20 -100 cities, the business of health insurance through annual payment mode was around 22 percent and through monthly payment mode it was 25 percent - slightly more than annual payment mode.
(Edited by: By Jomy)
First Published: IST