Importance of Buying Health Insurance at a Young Age

Adhik (22-years-old) started his career by joining a private IT firm in Bangalore. Adhik’s company offered him a corporate group health insurance when he joined one year back. Adhik is a very well-planned and organized person. He understands medical inflation and the cost of healthcare expenses in Bangalore. Being a meticulous person, Adhik purchased a separate individual health insurance policy at a young age so that he always gets the best treatment for his illnesses without affecting his savings. Adhik also knows that if he purchased health insurance policy plans in his 20s, he would be benefited in many ways. But many youngsters still don’t understand how important health insurance is for everyone. Therefore, they should purchase the best health policies to avail themselves of all the benefits of the policy.

Should we buy health insurance at an early age? If you are still pondering this question, then you have come to the right place. Here we are going to discuss why health insurance is important, and you should purchase it as early as possible.

Why Health Insurance is Important

• Purchasing a good Health Insurance Policy
• Some benefits of purchasing health insurance policies at a young age
• No-claim bonus (NCB)
• Critical illness Insurance
• Pre-existing Coverage
• Tax Advantage
• Wider Options
• Financial Planning

Purchasing a good Health Insurance Policy

Health problems and medical contingencies can hit anyone as these two are not age and income-dependent. Because of a sedentary lifestyle, poor work-life balance, and unhealthy food habits, youngsters are more prone to various diseases and injuries. With the advent of technology and the penetration of new-age healthcare treatments, the health sector is blossoming very rapidly. But sometimes, it is very difficult to find an effective solution to new diseases such as COVID-19.

Young people have a perception– “is health insurance really worth it at this young age?” But young people can also get impacted by critical diseases at an early stage. Even in the case of the COVID-19, nearly 21.8% of youngsters (21-30 years) were affected by this lethal virus. So, young people should consider health insurance seriously and must opt for it without any second thought.

Some benefits of purchasing health insurance policies at a young age

The best time to purchase a health insurance plan is when you are at the peak of your health. Always opt for the best health policies when your internal and external body parts are in good form, and you don’t have any health complications. Your premium will be on the lower side when you purchase health insurance at a young age. If you purchase a health insurance policy of Rs 5 lakh coverage at the age of 25 years, your premium would be Rs 5000. But if you purchase the same policy at 35 years, your premium will be Rs 6000. So, to keep the premium low, purchase a health policy as early as possible.

No-claim bonus (NCB)

When you are young and healthy, you will not initiate any claim in a policy year. Thus, you will be eligible for a no-claim bonus for zero claims in a given year. Your coverage will be increased for every claim-free year without paying any extra amount. With time, the insured amount for coverage surges, and you will enjoy the benefit of the higher sum insured health cover unswervingly.

Critical illness Insurance

Due to inactive lifestyles and unwholesome food habits, many youngsters are suffering from dangerous diseases, including cancer, kidney failure, paralysis, etc. The critical insurance policy can only cover these lethal ailments. But the treatment costs for these diseases are expensive because a person needs multiple visits to hospitals and doctors. Not only this, but also they need to opt for advanced therapies like chemotherapy, radiotherapy, and so on for a longer period.

But critical illness policies reimburse the costs of diagnosis and treatment, including hospitalization, chemotherapy, radiation, surgery, blood transfusion, nursing expenses, and the cost of prescribed medications, and many more. Suppose a person was diagnosed with an acute critical illness. In that case, the policy offers a lump sum amount that can be utilized for treatment and other medical expenses, irrespective of the hospital charges. Thus, it is imperative to opt for a critical illness cover or rider to protect one’s hard-earned money from medical contingencies.

Pre-existing Coverage

Most health insurance policies have a waiting period from one to two years. For pre-existing diseases, the waiting period is nearly 3-4 years. This means all previously existing diseases will be insured only after 4 years. By purchasing a health insurance policy early, you take care of the waiting period pertaining to any previous diseases by default. This means most existing illnesses automatically fall get covered as you age.

Tax Advantage

If you have started earning at a young age, you should purchase a health insurance policy. Because for all your paid premiums, you will be eligible for tax benefits up to Rs 25,000 under the Income Tax Act, 1961. If you have dependent parents, then the tax benefit can rise to Rs 50,000 on purchasing health insurance policies for them.

Wider Options

You will get a plethora of options for choosing the best policy plan at a young age rather than in your late 40s. You are free to choose the most suitable plan for all your healthcare requirements. So, analyze all parameters and make a firm decision.

Financial Planning

If you purchase a health policy at a young age, then it will not only offer you adequate coverage but also helps you to strengthen your finances in a better way. In addition, since you have sufficient medical cover that will take care of any health emergencies, you can make other long-term investments for a robust financial portfolio.
If you are still thinking about whether should I take health insurance at a young age or not; then you must go through the above article. A comprehensive health insurance policy will not only offer you sufficient coverage but also safeguards your money from hospital bills and health emergencies.