In recent times, illnesses are common among young adults and even children. Gone are the days when health was associated with age. With the increasing pollution, food contamination, stressful lifestyle, unhealthy diet, etc., diseases are inevitable. Therefore, it is important to get Health Insurance to prepare for the overbearing expenses.
Putting it off for your mid 30’s or 40’s may seem like a practical plan. However, this is the time where health costs only keep escalating. As a result, you get insurance plans at a higher premium. Buying it with fewer medical complications helps you get a better deal. Other than this, it offers many other advantages.
Reduced waiting period: Most Health Insurance Plans come with a waiting duration during which the policy is not active. This applies to unavoidable conditions like surgeries, pre-existing illnesses, and advanced treatments. The term ranges from a few days to even months. You cannot claim for any medical emergency during this time. Buying the policy at a young age helps serve the duration efficiently and utilise the coverage when the need arises.
Financial planning: You risk losing your hard-earned savings when a health emergency strikes. It affects not only your funds but also your long-term goals. Medical Insurance allows you to create a contingency for the same. Therefore, you need not save up for such uncertainties. It lets you preserve funds for other financial goals. Moreover, paying premiums at a young age is feasible due to reduced responsibilities.
Easy approval: The insurers evaluate your medical history, existing ailments, and overall wellbeing. This helps them decide the sum assured and other terms. However, severe health complications pose a higher risk, which leads to rejection. This is not a problem when you are young. You have lesser underlying conditions and better health. Therefore, buying a Health Insurance Policy becomes easier.
Extensive coverage: As a low-risk buyer, you get many benefits with a Health Policy. It directly affects the coverage as well. This includes hospitalisation, daycare procedures, maternity, vector bone procedures, etc. It remains active for your future illnesses too. So, it is wiser not to wait to get them later. Buying after your prime years, increasing your health scrutiny, making you lose out on such offers.
Bonus: You get rewarded for not making claims during the insurance term. It is known as the No Claim Bonus that keeps accumulating every claim-free year. This discount ranges from 10% to 100% for Health Insurance India. As you are less susceptible to illnesses at a young age, there are fewer chances of claiming. Therefore, you get to benefit from the discount and use it for later years.
No cut-downs: Insurance providers ask you to do medical check-ups for finalising the sum insured. It a common practice to evaluate your risk profile. If there are various pre-existing illnesses, they get excluded from coverage. This often happens to buyers aged above 40 years. As a result, it defeats the purpose of Medical Insurance. You can avoid this by buying it early.
Tax benefits: The premium you pay from your salary for Health Insurance Plans in India qualifies for a tax deduction. This applies to both family and individual policies under section 80D. Buying young helps you enjoy the exemption for a longer period.