A health insurance policy in your twenties is a good idea

Health emergencies might knock on doors without much warning and yet a very small portion of the Indian population buys health insurance policies in their early twenties. Most of them realize the importance of health insurance coverage in their 30s or 40s. Although there is no wrong age to enroll in a health insurance plan, financial experts suggest buying a health insurance policy early in your career.

The outbreak of the COVID pandemic has made people more aware of the various health insurance plans available in the market. Moreover, buying 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 medical expense coverage, critical illness coverage, and tax benefits, among others.

Here are 10 reasons why professionals should buy a health insurance policy in their twenties.

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Affordable premiums: When you opt for a health insurance policy in your twenties, you have more time to pay the premiums and hence the premium rate becomes more affordable. For the same coverage, you would pay a significantly higher premium in your 30s and 40s.

No waiting period: Most health insurance plans provide for a certain waiting period. During this period, you cannot make any claim, even in the event of a health emergency. Therefore, buying a policy in your twenties is a good idea, as most illnesses begin to appear with age, by the time you would have exhausted your waiting period.

Full coverage: It’s hard to get good insurance coverage when you already have a medical condition. However, when you purchase a health insurance plan in your twenties, any illnesses diagnosed after purchase are automatically included in the policy.

Lower rejection rate: You will be able to negotiate the best health insurance policy when you are in better health. As you get older and develop illnesses, it becomes difficult to get a health insurance plan that covers all your needs.

Fiscal advantages: Apart from the cover you get against medical expenses, health insurance policies are also a lucrative tax-saving instrument, as the premiums paid for the scheme fall under section 80D of the Health Insurance Act 1961. income tax.

Modern lifestyle: Pollution, long working hours, lack of physical activity and junk food have increased the chances of developing a disease at present. Therefore, it is advisable to purchase health insurance to protect yourself from rising healthcare costs.

Prime: Most insurance companies offer a cumulative premium – often in the range of 5-10% of the sum insured – when you file no health insurance claims in the previous year. This is more likely to happen in your 20s when you are relatively healthier than in older ages.

Pre-medical screening: When you opt for health insurance in your thirties or forties, the company may ask you for your health report. If the reports are not encouraging, companies charge a higher premium. However, if you take out a policy at a younger age, you may not even need to undergo any prior medical examinations.

Insufficient employer coverage: In the wake of rising health care costs, the health coverage provided by employers is often insufficient when needed. Employer medical insurance may seem attractive at first glance, but it is hardly comprehensive. Therefore, it is prudent to purchase your own health insurance policy in addition to the coverage provided by your employer.

Better financial management: When you have a health insurance plan at an early age, there is really no need to save separately for any unexpected medical expenses. This allows an individual to divert their finances to other long-term investments.

(Edited by : Sudarsanan Mani)