Why should you buy health insurance at an early age?
In India, it becomes imperative to buy medical insurance due to the sedentary lifestyle risks. With the Covid outbreak, the popularity and need for health cover have increased massively, especially among the younger population. Relying entirely on the health insurance offered by your organisation would not be sufficient. Most Indians are yet to realise the benefit and the need for health plans.
They become conscious of the importance of health insurance policy only in their 30s or 40s and regret not buying one in their earlier life. Following are the compelling reasons to invest in a plan at a young age, especially with the ongoing pandemic:
The policy premium varies between insurance companies. Lower premiums are one of the primary reasons why people in their 20s should buy health coverage. The age of the policyholder has a crucial role to play in determining the premiums. When you buy the policy in your 20s, you enjoy lower premiums. As the person ages, the health risks increase and the premiums as well.
No waiting period
In health insurance plans, the term waiting period means the duration during which you cannot make claims for specific diseases, surgeries, pre-existing illnesses, and unique treatments. Depending on the plan you have chosen, the duration could be anywhere between two to four years. Buying health insurance at a young age is beneficial as you would have a waiting period when you do not require the coverage.
Meanwhile, if you buy the policy when you are 45 years or 60 years, you will need to serve the waiting period, and disease exclusions might start based on the insured’s medical condition. Buying the policy in the 20s means that you would have served the waiting period when you require the plan and can claim all the benefits later.
Avail tax benefits
The premium of any medical policy which the policyholders pay from their income is qualified for tax deductions. Under Section 80D of the Income Tax Act, you can claim tax benefits for yourself, your spouse, and other dependents. Buying the policy in your 20s implies, you can enjoy the exemptions for a longer period. This is one of the best reasons to buy insurance early on.
Lower rejection rates
It is not easy to buy a medical plan with a huge medical history. Anyone diagnosed with heart disease or cancer would need to pay a higher amount of co-pay while claiming or might not get the insurance at all. The risk levels associated among younger individuals with good health conditions are less, precisely why they are not denied the insurance.
If you buy at 60 years old, most of the plans come with co-payment. This becomes a problem for policyholders when they file claims.
The increased dependency on technology and sedentary lifestyle, and high pollution levels have increased lifestyle illnesses like diabetes, hypertension, lung disorders, and obesity. People in their 20s are vulnerable to such diseases. And hence, it makes sense to invest in the health policy early on.
So, the ideal time to invest in insurance is when you understand your health expenses might arise in the future due to an overall upsurge in the cost of living. Hence, buy offline or online health insurance at an early age to enjoy the benefits longer.