Health insurance is more than a luxury in present times. You might have heard this several times, but numbers do speak for themselves. A survey by the National Sample Survey Office of 2013-14 reported that over 36 million households spent more than their annual per capita consumption on healthcare needs. While that might be a shocking number, the global coronavirus pandemic emphasized the importance of a health insurance cover even more.
But when is the best time to buy health insurance plans
? Financial experts recommend that the earlier you start, the better it is. While many individuals realize the importance at a later stage in their life, all they can do at that moment is regret not buying it earlier. So, the earlier you start, the better it is. Generally, your 20s is that phase of life during which your college life ends and professional life begins.
Advantages of getting a health insurance plan in your 20s:
· Affordable premiums
The first and foremost benefit of buying early in life is the affordability of premiums. Age is a crucial factor when it comes to health insurance premiums. While the human body is prone to lesser ailments at a younger age, these risks go up with an increase in age. So, when you are young and healthy, it is the best time to purchase a health insurance plan.
· Reduced chances of rejection
A company might reject the health insurance application of a person with a severe medical history. Alternatively, the insurer might charge steep premiums in addition to levying policy terms such as the co-payment to cover an increased risk for the insurance company. But when you purchase a health insurance cover early in your 20s, the probability of your application getting rejected is slim. Thus, it is best to seek protection at an early stage in life.*
· Comprehensive insurance coverage
Buying health insurance in your 20s will portray you as someone with a lower chance of being affected by some form of pre-existing ailment. No pre-existing ailments can help attain a minimum waiting period in health insurance
plans (as compared to someone with pre-existing illnesses). In addition, any illness that you might face in the future will get automatically covered in your insurance plan, subject to its terms. Therefore, comprehensive coverage for medical ailments is available right from an early age.*
· Protection during accidental hospitalization
While health contingencies at a young age may not be heard of, the risk of an accidental hospitalization lurks for all ages. With a health insurance plan by your side, you can ensure such a level of financial protection against hospitalization in case of an accident.*
· Benefit in tax computation
In addition to the above benefits, a health insurance policy also offers the benefit of tax deductions. This is due to the provision under section 80D that allows policyholders to claim a deduction for the premiums paid, not just for themselves, but also for their spouse, children, and even their parents. Read more about deductions under section 80D medical expenditure
Disclaimer: Tax benefits are subject to change as per tax laws.
*Standard T&C Apply
Considering the above benefits of health insurance
at an early age, it is hard not to miss this opportunity of ensuring a layer of safety. Make sure to compare health insurance plans and only then shortlist the policy that checks all the right boxes for you.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.