Does CIBIL credit score play any role in your health insurance selection?

Having a strong score of 750 and above is of paramount importance. The CIBIL (Credit Information Bureau India Limited) credit score is nothing but a numerical representation of the credibility of the individual depending on their credit history and past repayment record. It plays an essential role in distinct financial facets of one’s life like securing credit cards, loans and even housing property. However, when it is about the selection of health insurance policy, the CIBIL score does not have any direct impact on the decision-making procedure. 

Let’s explore the reasons why a good credit score is essential and examine its relevance to health insurance selection.

Importance of a good CIBIL credit score

Interest rates

A higher score often converts into a lower loan interest rate. This lowers the thorough borrowing cost and makes repayment affordable. For instance, a person with an excellent score might secure a digital or regular personal loan to meet the out-of-pocket expenditures linked with medical costs besides having a health policy at a lower rate of interest. 

Loan approvals

Lenders evaluate an individual’s credit score before approving loans. A good credit score increases the chances of getting loan approvals quickly and on favourable terms. Example: An individual with a high credit score is more likely to obtain a loan to cover medical expenses in case of a health emergency.

Housing loans

When placing an application for a home loan, a strong score ameliorates the approval chances and might even lead to a better rate of interest and loan conditions. For instance, home loans may be used to fund major health-linked expenditures like setting up a medical facility at home or revamping the living space for those with healthcare needs. 

Credit card eligibility

Credit card issuers prefer applicants with good credit scores. It enables individuals to access credit cards with higher spending limits, better rewards, and benefits. Example: Some credit cards offer health-related benefits, such as discounts on medical services or cashback on pharmacy purchases, which can complement a health insurance plan.

Employment opportunities

Certain employers consider credit scores during the hiring process, especially for positions that involve financial responsibilities. Example: In the health insurance industry, where employees handle financial transactions and assess insurance claims, a good credit score may enhance employability.

Utility connections

Some utility service providers may require performing a credit check before providing connections. A good credit score ensures a smooth process and may eliminate the need for additional deposits. Example: Having a stable credit history makes it easier to set up essential utilities like electricity, water, and gas in a residence near healthcare facilities.

Rental accommodations

Landlords usually in metro cities in porch areas may check an applicant’s credit score to assess their financial reliability and rent payment history. Example: Individuals with a good credit score may have an easier time renting a property close to medical facilities or in areas with better healthcare infrastructure.

Negotiating power 

With a good CIBIL credit score, individuals can negotiate better terms and conditions for various financial products, including insurance policies. Example: Although not specific to health insurance, a high credit score may facilitate discussions with insurers on premium rates or policy enhancements.

Building a strong financial profile

Maintaining a good credit score over time contributes to a strong financial profile, which can be advantageous in future financial endeavours. Example: A strong financial profile demonstrates reliability and credibility when seeking additional health insurance coverage or applying for long-term care plans.

Financial security

A good credit score signifies responsible financial behaviour and prudent money management. It can provide a sense of financial security and stability. Example: A person with a good credit score may have better financial resilience to handle unexpected medical expenses not covered by health insurance.

Access to preferred providers

Some private healthcare providers or hospitals may offer special packages or discounts to individuals with a good credit score. Example: While health insurance coverage remains separate from credit scores, having a good credit score might provide access to better medical services or specialised treatments through loans.

Future financial planning

A good credit score provides opportunities for better financial planning, including future health insurance needs and retirement savings. Example: Individuals with good credit scores may have more flexibility in choosing comprehensive health insurance plans that cater to their specific medical requirements.

Peace of mind

A good credit score allows individuals to have peace of mind, knowing they have a strong financial foundation to support their healthcare needs. Example: Knowing that one’s creditworthiness is in good standing can alleviate stress during medical emergencies and enable individuals to focus on their recovery.

Competitive edge

In certain cases, individuals with a good credit score may have an edge over others when applying for health insurance policies with limited coverage or specific terms. Example: In situations where health insurance companies have selective acceptance criteria, having a good credit score could potentially improve one’s chances of acceptance.

Overall financial well-being

A strong score contributes to the overall financial well-being of the individual, permitting better financial management as well as ameliorating living standards. For instance, with a strong score, individuals can better concentrate on attaining a comprehensive medical insurance plan that caters to sufficient cover for their medical needs.

Enhanced financial awareness

Having a strong score enables individuals to become more conscious of their decision-making and promotes better financial habits. For instance, an individual with a strong score most likely will remain informed regarding the distinct health plans available and even make a well-informed decision depending on their requirements. 

Does CIBIL credit score play any role in health insurance selection in India?

No, a CIBIL credit score does not directly impact the selection of health insurance plans in India. Health policy providers do not factor in your score when assessing your insurance application or for deciding your coverage. The selection of health policy is basically dependent on parameters such as medical history, age, pre-existing conditions, and particular coverage needs of the insurance holders.  


While having an excellent CIBIL score is necessary for distinct financial facets of life, like loan approvals, credit card eligibility and interest rates, it does not play any direct role in the selection of health policy in India. Health insurance providers assess applications based on factors relevant to an individual’s health and medical needs. It is important to prioritise health-related factors when choosing a suitable health insurance plan that adequately addresses one’s specific healthcare requirements.

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