Health emergencies can knock on the door without warning, but a small percentage of people in India have health insurance in their early twenties. Most of them recognize the importance of health insurance in their 30s or 40s. There is no wrong age to get health insurance, but financial experts suggest buying health insurance early in your career.
The outbreak of the COVID pandemic has made people more aware of some of the health insurance plans available on the market. In addition, the existence of an online platform has made purchasing health insurance easier than ever. There are several benefits to using a health insurance plan, such as health insurance coverage, serious illness coverage, and tax incentives.
Here are 10 reasons why professionals should get health insurance in their 20s:
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Affordable Premium: If you take out health insurance in your twenties, you will have more time to pay the premium, so the premium rate will be more affordable. With the same cover, you will pay a fairly high premium for those in their 30s and 40s.
No waiting period: Most health insurance plans have a certain waiting period. During this period, you will not be able to make a claim in the event of a health emergency. Therefore, it is a wise idea to buy insurance in your twenties, as most illnesses will begin to appear at an older age by the time you would run out of your waiting period.
Comprehensive coverage: It’s hard to get good insurance when you already have a medical condition. However, if you take out health insurance in your twenties, the illness diagnosed after purchase will be automatically insured.
Lower rejection rate: When you are healthier, you will be able to negotiate the best health insurance policy. As you grow older and develop illness, it becomes more difficult to get a health insurance plan that covers all your needs.
Tax incentives: Apart from coverage for health insurance, health insurance contracts are also an advantageous tax-saving measure as the premiums paid for the plan fall under Section 80D of the Income Tax Act of 1961.
Modern lifestyle: Pollution, long working hours, lack of physical activity, and junk food increase the likelihood of developing illness in this era. Therefore, it is advisable to take out health insurance to ensure safety from rising medical costs.
Bonus: Most insurers offer a cumulative bonus (often in the range of 5-10% of the insurance amount) if you did not make a health insurance claim the previous year. This is more likely to occur in your twenties when you are relatively healthy than at a later age.
Pre-medical screening: If you have health insurance in your 30s or 40s, your company may ask you to report a health checkup. If the report is not encouraging, the company will charge a higher premium. However, if you purchased insurance at a young age, you may not need to have a prior medical examination.
Insufficient employer coverage: Due to rising health care costs, employer-provided health insurance is often in short supply when needed. Employer health insurance may seem attractive at first glance, but it is not comprehensive. Therefore, it is wise to buy your own health insurance in addition to the coverage provided by your employer.
Better financial management: If you have health insurance at a young age, you don’t need to save much on unexpected medical expenses. This allows individuals to divert their funds to other long-term investments.
(Edited by: Sudarsanan Mani).
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