Whether you are young or old, buying health insurance is a must for everyone. In the face of a medical crisis, it pays for your hospitalisation bills, pharma expenses, doctor’s consultation fees, and more. Being young, it is natural to believe that you are fit and healthy, and nothing unpleasant can happen to you. However, the rise in lifestyle diseases and the ongoing COVID-19 pandemic across all generations has made it essential even for the young to purchase a mediclaimpolicy in the recent years. It not only helps you secure your savings but also comes with a slew of advantages.
Top benefits of buying health insurance at an early age
Lower premiums
One of the greatest advantages of buying health insurance in your early 20s is lower premiums. Your mediclaim policy premium is directly proportional to your age—the younger you are, the more fit you’d be so the lower the premium. As you get older, health risks increase significantly and the premium cost goes up. To understand this better, let’s use an example:
Assume you are 22 years old and require medical coverage of Rs5 lakh. Because of your young age, the insurer charges you a premium of Rs3500. However, at the age of 35, the same health insurance coverage might cost you roughly around Rs6,000.
Waiting period is completed sooner
The waiting period refers to the duration in which you are not covered for illnesses and diseases. With most insurers, and depending on the plan you choose, the waiting period for pre-existing diseases is usually between two to four years. When you start covering your health in 20s, you tend to complete the waiting period sooner, and when your health risk is low. That way, when you grow older you’ll have the health insurance covering you from day one for the pre-existing dieases if you happen to need it anytime in future.
Lower rejection rate
If you have a poor medical history, your health insurance proposal is likely to be rejected. Besides, if you have any pre-existing disease such as a cardiovascular illness or lung disease, your premium, co-pay amount and deductible percentage will all be higher. Instead, if you buy a mediclaim policy at a young age when you are healthy, you wouldn’t have to worry about the rejection rate, premium amount, co-pay clause or the deductible.
No claim bonus
Youngsters are usually free from any disease or illness. When you buy health insurance at a young age, you are less likely to claim. And when you don’t raise a claim, the insurer rewards you with some additional sum insured, also known as the no claim bonus. This bonus keeps on accumulating for every claim-free year, allowing you to earn up to 50% sum insured.
Tax benefits
The premium you pay towards your health insurance is eligible for tax deduction under mediclaim
No pre-medical check-up
When you purchase health insurance at a young age, you are not required to undergo a pre-medical health assessment test. However, medical self-declaration is mandatory at the time of purchasing a mediclaim policy.
To conclude
The early 20s is when most people land a job and kick start their careers. It is easy to get carried away by the feeling off being financially independent, focusing solely on building a strong foundation for the future. But in the rush, do not forget to prepare for medical uncertainties. Purchase health insurance in your early 20s and reap the benefits of being an early bird.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.
