Several national health expenditure reports have suggested that most Indians still pay medical bills out of pocket. These expenses are not covered by any public or private insurance plan. As a result, a large part of the population does not benefit from quality health care.
Nevertheless, India has come a long way when it comes to medical technologies. Medical costs have also been steadily increasing in recent years. It is therefore crucial to take out a health insurance policy at the right time to meet these rising costs.
The right time to buy health insurance
Most people think that if they are currently healthy, they can buy a health insurance plan for a later stage in their lives. However, this is one of the biggest mistakes one can make.
A good time to buy a health insurance policy is when you are young, preferably in your mid-twenties. Here are some benefits that individuals can derive from purchasing a health insurance plan at a young age.
Benefits of buying health insurance at a young age
Purchasing a health insurance plan early provides complete financial security at an early stage of life. In addition, it also brings the following benefits:
● Lower premium amount
Insurers determine the amount of the premium taking into account several factors, such as:
Pre-existing medical conditions
Moderator ticket or voluntary franchise
Apart from these, the age of the policyholder is another crucial factor that insurers consider when determining the premium amount.
An insurance company cannot predict whether someone is at risk of contracting a disease. Thus, the age of an individual is the only index concerning his well-being. Often, insurers believe that older policyholders are at a higher risk of getting sick and making frequent claims. Thus, most insurance companies charge a higher premium for senior citizens.
● Easier to pass the waiting time
Health insurance policies usually come with a waiting period. This is the period within which the insured cannot claim their rights, except for accidental hospitalization.
In most situations, younger people are free from serious medical conditions. Thus, the chances of these people passing the waiting period without worry are higher than the elderly.
· No need for medical visits
People who buy a health insurance plan at a later age will have to pass a series of medical tests before they are eligible to get it. Following the results of these tests, the insurance company issues the policy coverage.
However, most insurance companies drop these medical tests when it comes to younger people on health insurance plans. This leads to a convenient and fast application procedure.
● Increased chance of accumulating NCBs
The NCB is a form of reward that insurance companies offer to policyholders in the event of a claim-free year of insurance. The bonus-malus can be used by policyholders in two ways, including:
As part of a cumulative benefit, an insurer offers a higher insured amount. For example, suppose a policyholder has a health insurance scheme with an insured sum of Rs. 5,000,000. His insurer provides a cumulative benefit of 5% for each claim-free year. So, after the first year without a claim, he/she would be eligible to receive an insured sum of Rs. 5.25 million.
Meanwhile, as part of the premium discount, an insured can benefit from a lower premium of up to 50% for five consecutive claim-free years.
Generally, younger policyholders stay in better shape, making them unlikely to make a claim each year. In this way, they can accumulate the bonus-malus on their health insurance policy, bringing various reductions and advantages.
In addition to knowing the ideal time to purchase a health insurance policy, it is also crucial for individuals to choose a plan that offers cumulative benefits. In this regard, one can check out the various health insurance plans offered by Bajaj Finance Limited. To provide extensive financial security against pre and post hospitalization expenses, medical examinations, ambulance expenses and more, Bajaj Finance has partnered with some of the best insurance companies in India. You can choose from a range of health insurance policies, including individual and family health insurance policies that cover you adequately.
Obviously, health insurance plans have more to offer when individuals purchase them at a younger age. However, be sure to read the terms and conditions of the policy beforehand to make an informed purchase decision.