Health emergencies could come knocking on doors without much warning and yet a very small section of people in India purchase health insurance policies in their early 20s. Most of them realise the importance of health insurance cover in their 30s or 40s. While there is no wrong age to go for a health insurance plan, financial experts suggest buying a health insurance policy in the early stages of one's career.
The outbreak of the COVID pandemic has made people more
aware of the several health insurance plans available in the market.
Besides, purchasing a health insurance policy has become easier than
ever with the presence of online platforms. There are several benefits
of having a health insurance plan, including coverage against medical
expenses, coverage against critical illnesses, and tax benefits, among
others.
Here are 10 reasons why professionals should buy a health insurance policy in their 20s.Affordable premiums: When you opt for a health
insurance policy in your 20s, you get more time to pay the premiums and
hence, the premium rate becomes more affordable. For the same cover, you
would pay a significantly higher premium in your 30s and 40s.
No waiting period: Most
health insurance plans have a certain waiting period. During this
period, you cannot make any claims, even in case of a health emergency.
Therefore, buying a policy in your 20s is a wise idea as most illnesses
start showing up with older age, by when you would have exhausted your
waiting period.
Comprehensive coverage: It
is tough to get a good insurance cover when you already have a medical
condition. However, when you buy a health insurance plan in your 20s,
any ailment diagnosed after the purchase is automatically included in
the policy.
Lower rejection rate: You
will be able to negotiate the best health insurance policy when you are
healthier. As you age and develop ailments, it becomes difficult to get
a health insurance plan that covers all your needs.
Tax benefits: Apart
from the coverage you get against medical expenses, health insurance
policies are also a lucrative tax-saving instrument as premiums paid
towards the plan come under Section 80D of the Income Tax Act, 1961.
Modern lifestyle: Pollution,
long working hours, lack of physical activity and junk food have
increased the chances of developing an ailment in today's times. Hence,
it is advised to get a health insurance cover to gain security from
rising healthcare costs.
Bonus: Most
insurance companies offer a cumulative bonus -- often in the range of
5-10 percent of the sum insured -- when you don't file any health
insurance claim in the preceding year. This is more likely to happen in
your 20s when you are relatively healthier than at a later age.
Pre-medical screening: When
you opt for a health insurance plan in your 30s or 40s, the company may
ask you for your health check-up report. If the reports are not
encouraging, companies charge a higher premium. However, if you buy a
policy at a younger age, you may not even need to undergo any
pre-medical check-ups.
Insufficient employer coverage: In
the wake of rising healthcare costs, the health coverage provided by
employers often falls short in times of need. Employer’s medical
insurance may seem attractive on the surface but it is hardly
comprehensive. Therefore, it is prudent to buy your own health insurance
policy on top of the coverage provided by your employer.
Better financial management: When
you have a health insurance plan at an early age, there is not much
need to separately save for any unforeseen medical expenses. This
enables an individual to divert finances to other long-term investments.
