A health insurance policy offers financial protection from costs associated with various illnesses and diseases. In recent years, there has been an increase in the costs of medical care. Also, with our lifestyles getting more sedentary and our eating habits turning unhealthier, many people suffer from various lifestyle-related ailments and diseases. This has made a comprehensive health insurance policy a must in today’s times.
But, when should you buy health insurance? In your 20s? The 30s? Or, later? Many insurance experts recommend that people buy a health insurance policy when they are young for the reasons mentioned below.
10 Reasons for Buying Medical Policy When You are Young
Here are the top reasons for buying insurance when you are young:
- Lower costs
When you buy health insurance plans in India at a young age, you can get the policy at a lower premium cost. This is because most insurers calculate the premium of a health insurance policy after considering the age of the insured person.
- Better coverage
Usually, people are healthier when they are young. This allows them to get a higher sum insured since the insurer views them as low-risk customers. So, you can get a higher sum insured for a lower premium. Thus, you can purchase best buy health insurance policies with ease.
- No pre-existing conditions
People in their 20s are less likely to have pre-existing conditions compared to those in their 40s or 50s. You are also less likely to have any lifestyle-related disease when you are young. Most health insurance policies have a waiting period for pre-existing conditions before offering coverage.
When you buy a health insurance policy online at a young age, you don’t have to worry about the waiting period. Also, if you develop any lifestyle-related illness after purchasing the policy, then the costs will be covered.
- Tax benefits
As a young individual, you can claim a tax deduction of up to Rs.25,000 on the health insurance premium paid by you. If you are purchasing a health insurance plan for your parents, then you can claim an additional deduction of ₹25,000. This amount can increase up to ₹50,000 if your parents are senior citizens. Therefore, saving tax at a young age can help you invest the money and generate wealth.
- Independence from employer health insurance
Many organisations offer health insurance to their employees under a Group Health Insurance plan. While these policies offer good coverage, if you decide to change your job and your new employer does not offer insurance, then you can be left with no medical coverage and have to manage all healthcare costs yourself. However, when you purchase a health insurance policy at a young age, you can get insured by paying a lower premium and being independent of the employer’s group insurance plan.
- Coverage from accidents
Accidents can happen anytime and anywhere. Some accidents can result in physical injuries and even death. If you require hospitalisation after an accident, then the costs can dent your finances and derail your savings plan. With a health insurance policy, all such costs can be managed with ease.
- No Claim Bonus
Most insurance providers offer a No Claim Bonus feature to existing policyholders. As per this feature, policyholders are given discounts on the premium at the time of renewal if they have not filed a single claim during the term of the policy. This is a progressive discount that increases with every subsequent year that you do not file a claim.
When you buy a policy at a young age, the chances of needing medical care and filing a claim are low. Hence, you can reach a high discount on premium and get the policy renewed at a cheaper rate as you age.
- Safeguards your savings
Youth is a time for saving and investing your money. These investments allow you to create a corpus that can help you manage various costs like buying a house, higher education, wedding, retirement, etc. However, if you don’t have a health insurance policy and have to manage medical/hospitalisation costs, then you will have to dip into your savings and even break investments.
Hence, it is prudent to buy a health insurance policy online when you are young. For example, if there is a history of cancer in a family, then youngsters must get a cancer insurance policy at a young age to ensure that they don’t burn money on cancer treatment if they, unfortunately, get diagnosed with it.
- Protects your family
Health insurers also offer family insurance plans that offer coverage to your entire family. This helps reduce the costs of buying individual health insurance plans for each member of the family and get a higher sum insured per member.
- Focus on treatment rather than costs
Imagine falling ill, being hospitalised, and worrying about how you would manage the costs as opposed to getting better. It can be stressful. With a comprehensive medical policy, you don’t have to worry about managing these costs and can focus on getting better.
As you can see, buying a health insurance policy at a younger age offers a range of benefits. In fact, most financially-prudent youngsters ensure that they have a comprehensive health insurance policy as soon as they start earning. Make sure that you research the market and compare providers and plans before buying. Good Luck!