Can I Pay Health Insurance Premium Monthly?

Many people ask if they can pay health insurance premiums every month instead of once a year. The short answer: yes, you can, but a few conditions apply.

How Monthly Premiums Work?

Most insurers let you choose how often you want to pay—monthly, quarterly, half-yearly, or yearly. The Insurance Regulatory and Development Authority of India (IRDAI) allows these modes, so insurers can offer flexible payment schedules.

Do All Insurers Offer Monthly Payments?

Not always. Many insurers provide monthly payments, but some limit it to specific plans. Some allow it only for digital payments or auto-debits through NACH, UPI AutoPay, or credit cards. Insurers do this to reduce missed payments.

Before you buy a policy, check:

Are Monthly Premiums More Expensive?

Usually, yes. The total yearly amount often becomes slightly higher. Insurers apply a small loading fee to cover administrative costs and the risk of missed payments.

Example:

A small difference adds up over time. If you want the best price, yearly payments remain cheaper.

What Happens If You Miss a Monthly Payment?

This is where you need to be careful. If the payment fails, the insurer gives you a grace period. For monthly mode, the grace period is 15 days.

If you still don’t pay during this window, the policy can lapse. A lapsed policy leaves you without coverage, which can cause trouble during a medical emergency.

So, set up auto-debit to avoid surprises.

Are Tax Benefits the Same?

Yes. Even if you pay monthly, you still get the same tax benefit under Section 80D. What matters is the total amount you pay in the financial year—not how you pay it.

Who Should Choose Monthly Premiums?

Monthly payments make sense if:

Yearly mode makes sense if:

Things to Check Before Choosing Monthly Mode

Make sure you review:

Whether your plan even supports instalments

Final Thought

Monthly premiums look easy on the surface, but yearly payments keep things cleaner. Insurers process claims faster when the policy stays steady through the year. A missed monthly payment can cause a lapse, and a lapse can block your claim at the worst time. An annual payment avoids that risk and keeps your coverage solid.
If you want a plan that fits your budget and keeps your claim path smooth, speak with the Best Health Insurance Agent today. Get clear answers, honest guidance, and a policy that works the way you expect—without surprises.