You're Young & Healthy - Why Health Insurance Matters!

You're Young & Healthy - Why Health Insurance Matters!

You are in your 20s; you rarely have to go to a doctor, you never miss hitting the gym, and all is going well, touch wood! So why would you need to part with your money every year to buy health coverage that you just don’t need? You don’t need a health insurance plan - or do you?

Health insurance is necessary. Period. Irrespective of your age, gender, or location, having a health plan cannot be avoided. A medical emergency can hit anyone anywhere, and with India’s medical inflation at an all-time high of 14%, a trip to the hospital can eat up all your savings in no time, thus affecting you not just financially but also emotionally.

When you're young, health insurance companies see you as a low-risk customer. You have minimal chances of being sick or diagnosed with a serious ailment when young. You're less likely to be suffering from pre-existing conditions. So, offering you a health plan works well for the insurer. On the contrary, someone over 40, however, is more likely to require healthcare and, thus, would have to spend extra for the same coverage.

A health insurance plan is the foundation of a smart financial plan. Despite having a good amount of savings, without the security blanket of insurance, you’ll be at risk of using it up in a medical emergency. Hospitalisation, preventive check-ups, ambulance, daycare procedures, and pre and post-hospitalisation charges would typically be covered under the health plan, thus, saving you from unannounced expenses.

Wondering what other benefits you can avail of when you buy insurance at a young age? Read on.

• It’s raining discounts - get the best deal: Purchasing a health insurance policy at a young age allows you to avail several discounts and offers. These discounts, in turn, lower the overall premium burden. Also, it is considered that young individuals are usually free from serious health complications. This is the reason why health insurance companies charge low premiums for young individuals. For example, at 25 years, an INR plan of 5 lakhs may cost you around INR 5,000 a year, while the same would cost you around INR 8,000 at 45.
• You’ll serve the waiting period well in time - major illnesses are covered only after 48 months: The waiting period is the tenure until you cannot raise an insurance claim. For major/critical illnesses, the waiting period is quite long. However, when you purchase a health policy at an early age, the chances of catching critical illnesses are less and hence, you can easily pass the waiting period. In your later life, even if you are diagnosed with a serious medical condition, you do not have to wait anymore to avail of health insurance benefits.
• You can make the most of tax benefits: A health insurance policy lets you enjoy tax benefits under Section 80D of the Income Tax Act, of 1961. Individual plans, family floater, and dependent parents' plans are all included for tax benefits.