Changing lifestyle, increasing pollution levels, a steep rise in the use of preservatives in food, etc., leave a big question mark on your future wellness. Increasing healthcare costs makes the equation even worse. Despite all these uncertainties, many people still consider health insurance as a waste of money and hesitate to purchase it when they are young. Most Indians buy a medical insurance plan when they cross the 40-year mark. But if you buy a health insurance plan at a younger age, say in your 20s, you’ll be eligible to enjoy many benefits.
Being in your twenties is an incredible time in your life where you can try new things and experiment. It’s a critical time in your life, and your choices could have a significant impact on the rest of your life. Purchasing health insurance is an important but often overlooked decision. Further, if your job requires a lot of travelling or if you’re sportive or passionate about adventurous activities, then don’t forget to add a personal accident cover to your health insurance plan. You can purchase it as a standalone cover as well.
Here we discuss a few advantages of buying a health insurance in your 20s.
- Buying later may cost you more
Buying a medical insurance at a younger age may cost you less, i.e., the premium you need to pay for your health insurance will be less as, during your youth, you’re less likely to suffer from health complications. However, with time as an individual’s age rises, so do the risks associated with his or her health, and as a result, so does the premium.
- Take maximum advantage of the no-claim bonus
As you’re less likely to suffer from health complications in your 20s, there will be more no-claim years. In health insurance, if you do not make any claim in a year, then on renewing for another period, you’ll be eligible for either a discount in the premium or an increase in the sum insured. An increase in the sum insured means an increase in your medical insurance coverage.
- The waiting period will get over early
The insurers apply a waiting period clause to many benefits of health insurance plans. And during this waiting period, you won’t be able to claim that specific benefit. Usually, the waiting period ranges between 2 to 5 years, and it varies from insurer to insurer. If you buy your medical insurance during your 20s, you can pass the waiting period smoothly and later, whenever the need arises, you can avail of the benefits immediately.
- Lower Rejection Rate
Insurance applications may be denied if the applicant has a major medical condition that develops later in life. When you’re in your 20s, the chances of your application being denied are much smaller. Furthermore, while applying for a health plan, insurance firms may not need you to attend a medical check, making it easier to purchase the coverage online.
- Escape from pre-insurance medical checkups
You can skip the pre-insurance medical checkups if you buy a health insurance during your 20s, as your chances of having pre-existing illnesses are low during that age. On the other hand, if you buy a medical insurance after 45, you need to undergo many tests to ensure that you’ve no pre-existing ailments. There will be a waiting period for all pre-existing conditions.
- Reduce your financial dependency on others
If you have a medical insurance plan with an add-on of personal accident insurance, you can stay peacefully and start financial planning for other goals of your life. Ultimately, your financial dependency on others will reduce.
- Benefits of adding personal accident cover to your health insurance plan
A personal accident cover gives the sum insured to the family members in case of the policyholder’s accidental death. If the policyholder has permanent total/partial disabilities due to an accident, then the insurer will pay a pre-agreed amount. In temporary disability, a pre-defined sum will be given to the policyholder for a definite period. Apart from this, certain insurers offer education grants to the children if the policyholder passes away in an accident.
- Enjoy tax deduction
If you buy a medical insurance during your 20s, you can enjoy tax deduction under Section 80D for an extended period. Premiums paid to health insurance are eligible for a tax deduction under Section 80D of the IT Act. And the upper limit of this benefit is Rs.25,000 in a financial year.
Life is unpredictable, and we rarely have control over it. While you may have had a slightly irresponsible approach to life as a child, it is always a good idea to be well prepared for the future. Getting medical insurance while you’re in your 20s is always a good idea. Purchasing a health insurance plan early helps you to enjoy the benefits to the fullest. You can enhance the benefits of your health insurance with add-ons like personal accident cover.
Purchasing a health insurance plan early helps you to enjoy the benefits to the fullest. And its rightly said that when it comes to medical insurance plans, it’s better to buy them a few years early than buying them a few days late.