Illness strikes only when you are older — this is a misconception that has led many to believe that they do not require health insurance when they are young. However, medical emergencies have a knack of showing up at your doorstep anytime — even when you least expect them. It is because of this several financial advisors as well as doctors alike have one common piece of advice when it comes to health insurance — buy a health insurance policy as early as possible, even if you are in your 20s! Let’s find out why.
Medical emergencies can occur at any time. However, when you are young, the chances of falling sick could be lower. Insurance companies recognise this and offer more affordable premiums to younger policyholders. This is because they are less likely to make a claim, and are therefore a lower risk to insure. The older you get, the more you will have to pay to get health insurance.
When you get older, you might have to undergo multiple tests and medical check-ups to get a policy. This can become extremely troublesome. However, when you are young, you are less susceptible to illness, and, therefore, several health insurance companies provide cover without any tests.
Things like maternity care, pre-existing illnesses have a waiting period before they can be covered by your health insurance policy. This waiting period varies from one insurance provider to the next and can range from one to four years or more. If you buy health insurance young — while you may be healthy —the waiting period may not hurt so much. However, if you get a policy when you are older you might have to wait before emergency expenses are covered by your policy.
The risk of life-threatening illnesses increases with age. Insurance companies can also reject your insurance application if the risk to insure is too high! However, as mentioned above, the chance of illness and making a claim is much lower when you’re young. Therefore, rejection is rare when you buy a health insurance policy when you are young.
When you’re younger, every penny you save can really feel like a penny earned. In this regard, young professionals can use the tax benefits of a health insurance policy to their benefit. Under Section 80D of the Indian Income Tax Act, you can use the premium paid toward a health insurance policy to avail deductions on your taxable income up to Rs 1,00,000!
When you buy a plan young, you ensure that your future healthcare needs are met with ease. If you wait too long, a medical emergency could come along and burn through your hard-earned savings. So do not put health insurance on the ‘will see about it later’ list and get insured today. You can use the internet to buy health insurance online — it will take you no more than a few minutes and you can make the purchase from your home, office or on the go!
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