10 Reasons why buying a Health Insurance in your 20s a Good Idea

In India, for a young person in his early 20s, availing a health insurance policy is imperative due to increasing health risks from a sedentary lifestyle. After COVID outbreak, the popularity and need of a health cover has significantly increased, especially among the Gen Y. And, merely counting upon the health insurance cover given by your employer will not suffice.

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    Many Indians are yet to realize the need for a health plan and its benefits. They become conscious about the significance of health insurance only in their mid-30s or 40s and regret not having purchased a comprehensive health cover earlier in their life.

    Read on to find out the genuine rewarding reasons that could compel you to invest in a health insurance policy at a young age, especially during the ongoing coronavirus pandemic. 

    Lower Premiums-

    The policy premium cost varies from one insurance provider to another. Lower premium amount is one of the top reasons to buy health coverage in your 20s. The age of the policy seeker has a very crucial role in deciding the premium of the policies. In other words, the premium amount depends on your present age. 

    If you buy a policy in your 20s, you can enjoy lower premiums. As a person ages, his health risks also increase and so the premium also increases with the increase in age.  

    For instance, if you buy a health insurance plan with INR 5 lakh coverage at 25 years, you might have to pay around INR 5,000 premium. If you opt for the same plan at the age of 35 years, the premium amount increases to INR 7,000 and at 45 years you would have to shell out INR 12,000 for the same plan. So, buy health insurance as soon as possible to get it at the lowest possible premium. 

    No Waiting Period-

    Waiting period, in health insurance terminology, refers to the time duration during which you are not allowed to make health claims for certain diseases, specific surgeries, pre-existing illness, and special treatments. 

    Depending on the plan you have chosen, this duration is generally two to four years. Purchasing health insurance at a young age is beneficial as you would be serving the waiting period when you don’t need health coverage. 

    On the contrary, if you purchase a policy at 45 years or 60 years of age, you will need to serve the waiting periods and disease-specific exclusions may kick in on the basis of the medical condition of the insured. Purchasing the policy early implies that by the time you would need policy assistance, you would have already served the required waiting period and hence can claim all the benefits later. 

    Avail Tax Benefits-

    The premium of any family insurance plan or health insurance plan that policyholders pay from their salary is qualified for the tax deduction. Under section 80D of the Income Tax Act, 1961, one can get tax benefits for self, spouse, and dependents. Buying a health insurance policy in your 20s implies you can start enjoying the tax benefits for longer. This is one of the best advantages of investing in medical insurance

    Comprehensive Coverage-

    Young medical insurance policy seekers can enjoy the benefit of a more comprehensive deal. Purchasing a policy early ensures that there is no possibility for pre-existing illnesses as you will get covered at a young age. Any illness that gets diagnosed later on will automatically be covered. 

    Lower Rates of Rejection-

    In a country like India, it’s not easy to avail medical insurance with medical history. An individual diagnosed with heart disease or cancer would either need to pay high amounts of co-pay while claiming or may not get a health insurance cover at all. The risks associated with younger individuals with a good health condition are less, which is why they are less likely to be denied insurance.

    If you enter after 60 years, most of the health plans come along with co-payment. This is a problem for policyholders when they file claims. So, it is sensible to get health insurance at a young age when most of the medical coverage plans don’t include co-pay in the policy.  

    No-Claim Bonus-

    Almost all the insurance companies reward the policyholders with a no-claim bonus on the insured sum for not filing any claim. The percentage of Non-Claim Bonus (NCB) varies from one health insurance Company to another. For instance, NCB for HDFC ERGO Health Insurance Renewal will vary from oriental insurance and likewise. 

    This is the cumulative bonus or discount that is accumulated on a yearly basis on the number of years for which you have not made any health insurance claim. Also, you can get your No-Claim Bonus transferred at the time of policy renewal.

    Employer Cover Is Insufficient-

    It is not wise to depend only on the medical coverage offered by the employers. Employer’s medical insurance may seem to be attractive on the surface, but don’t provide a comprehensive long-term solution. A majority of the corporate health plans do not provide adequate medical coverage. In such cases, you might land up in trouble during emergencies. 

    Moreover, corporate health insurance policies will not work when you change to a new company and you would never know what kind of coverage you will get from your new employer. 

    It’s prudent to buy a family health plan or a super top-up plan that you can use all through your life. If you happen to be unemployed during some stage of your career, then also you would not have health insurance coverage. So, it’s advised to purchase medical insurance to stay financially secure.

    Increase in Lifestyle-Related Illnesses-

    The increasing dependence on technology and sedentary lifestyle along with dangerous pollution levels have resulted in an increase in lifestyle illnesses such as diabetes, hypertension, lung disorders, and obesity. 

    People in their 20s are also vulnerable to these lifestyle-related diseases. This is one of the main reasons why buying medical insurance at a young age makes sense. 

    New-Age Health Insurance Plans are more Comprehensive-

    Gone are the days when medical insurance companies offered coverage only for hospitalization. New-age plans go beyond the typical hospitalization coverage and offer protection against day care procedures, OPD, COVID hospitalization, bariatric surgeries, and more.  Thus, besides serious illnesses, even if you visit a physician for minor problems, your medical expenditures would be covered.

    Instead of spending an exorbitant amount on the treatment on your own, it will be wiser to get an early enrolment for an insurance policy, as it will cover such expenses for you.  

    Pre-Medical Health Check-Ups Are Not Needed-

    Policy seekers who have crossed a certain age  (around 45 years) need to undergo a health check-up before getting a health insurance policy because of increased risks to health.  If you apply for a policy at a young age, you don’t need to undergo pre-medical screenings. 

    If your health reports are not good you will be charged a higher premium or the insurer will deny your request. So, if you want to pay lower premiums and avoid coverage restrictions, buying a health insurance policy will be a wise decision.  

    Long Story Short

    There’s a popular saying, “Time and tide wait for no one.” So, the ideal time to invest in health insurance is the moment you understand that your health expenses may only increase in the future due to the overall upsurge in the cost of living among the other factors.

    In simple words, purchase a health insurance plan at an early age to enjoy its benefits for longer. The golden rule of medical insurance is, “The early we buy, the more the benefits we get to enjoy.” If purchasing coverage young has such a lot of advantages, why delay? Hurry up and get your policy right away!

    Written By: PolicyBazaar - Updated: 26 July 2021
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    Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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