13% of health insurance customers pay premiums in monthly, quarterly EMIs, shows data: How the model works

About 13% of Policybazaar customers pay health insurance premiums in monthly or quarterly instalments, with an average annual premium of ₹17,500. Here's how the model works and what customers should know before opting for it.

Around 13% of Policybazaar customers are choosing to pay their health insurance premiums in monthly or quarterly instalments rather than paying the entire amount upfront, as per data shared by the insurance marketplace.

The average annual premium or EMI ticket size among these customers is ₹17,500, Policybaazar noted. The figures are specific to the company’s customer base and does not represent the wider health insurance market trend.

How does the model work?

Under the instalment-based model, customers can purchase multi-year health insurance policies and pay premiums on a periodic basis instead of making the entire payment in one go.

For example, a three-year health insurance plan with an annual premium of ₹12,000 would cost ₹36,000 over the policy term. If the insurer permits equal monthly instalments without additional charges, the customer would pay just ₹1,000 a month for 36 months.

This indicates that instalment-based payments are already becoming a popular option for consumers to manage their premiums, especially at a time when medical inflation is rising and health insurance companies have hiked the premiums, in some cases by a hefty 30% in 2025.

According to the company, multi-year plans can offer an additional benefit by allowing customers to lock in their premiums for an extended period, shielding them from renewal-related premium increases during the policy term. Such hikes can typically be around 10%, depending on the policy terms, it added.

What should customers be aware of?