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7 Benefits of Investing In Health Insurance at an Early Stage

You reap more benefits from your health insurance policy if you invest in it at an early stage. You get comprehensive coverage at lower premiums, and more.
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We often hear the cliché, “Health is wealth.” Not only is it true, but it also makes more sense to put your money on your health. Besides doing everything it takes to improve and upkeep your emotional, physical, and mental health, it is wise to invest in health insurance. You reap the most benefits from your health insurance policy if you invest in it at an early stage. You get to pay lower premiums, get comprehensive coverage, tax benefits, and more. This article focuses on India, but it holds true globally. ~ Ed.

7 Benefits of Investing In Health Insurance at an Early Stage

Health insurance is one of the most essential things that everyone must possess. Still, most Indian citizens are yet to realise its importance. In recent times, due to the advent of the pandemic, the demand for health insurance policies is on the rise, and people are slowly getting aware of the importance of it.

With all these factors, it becomes necessary for everyone to get a health insurance policy at the earliest. Some of the key benefits include enhanced coverage against a lower cost and the possibility of passing the waiting period easily without worrying much about medical emergencies.

Keep reading to know more about the benefits of opting for a health insurance plan early in life.

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7 Advantages of Availing a Health Insurance Plan Early in Life

The list of benefits includes lower rejection rates, forgo medical checkups, tax benefits, and much more. 

Extensively Lower Premiums

Generally, the premium charges depend on your age and the kind of insurance policy. If you go for a health policy at a younger stage, you will have certainly have to pay a lower premium. This is because individuals are less likely to have health risks at a younger age. However, for the same reason, insurance providers levy more premiums for older policyholders.

For example, in your 20s, if the insurance policy provides coverage of 5 lakhs, it might charge you around Rs.5000 as a premium. But, for the same, in the late 30s, the premium will cost you approximately Rs.7000. Concluding, it’s advised to go for a health insurance plan at an early stage. 

Read more: Why You Should Invest In Health Insurance at An Early Age

No Waiting Period

The waiting period is the time when you are not allowed to make any policy claims. Usually, the waiting period depends on the lender, but it generally ranges between 2 to 4 years. Hence, opting for health insurance at a younger age will allow claiming money at an older age. Whereas, if you buy health insurance at an older age, the waiting period might adversely affect you when in need of money.

Tax Benefits    

Opting for a health insurance policy at a younger age lets you enjoy tax benefits for a long. According to Section 80D of the Income Tax Act, 1961, you can claim the paid premium that you pay as a deduction from your aggregate income.

Read more: Why Health Insurance Is Vital for a Healthy Family

Comprehensive Coverage

As young health insurance holders are less likely to have any pre-existing medical issues, most insurers provide comprehensive benefits for them. Thus, any medical conditions are automatically included in the policy at the later part.

Lower Rates of Rejection

Opting for health insurance at an older age without medical history is challenging. However, if a prospective policyholder has medical conditions such as cancer or heart disease, it might increase the premium values or even result in rejection. In comparison, younger applicants are less likely to have any life-threatening disease thus, have lower chances of rejection.  

No-claim Bonus

Most health insurance policy providers reward their customers with a No Claim Bonus (NCB) on insured sum if they do not file any claim. This is accumulated every year, and this can be transferred as well during policy renewal.

No Need To Go For Pre-Medical Health Check-Ups

As mentioned above, policy seekers at a younger age are less likely to have any pre-existing medical complexities. Hence, most policy providers give the benefit to seekers that they can avail themselves of a health insurance policy without any pre-medical tests. However, individuals must note that these benefits vary with the providers, and hence, it is essential to check the terms and conditions beforehand.

Read more: 5 Mistakes to Avoid with Your Health Insurance Plan.  

Wrap-Up

Conclusively, it becomes essential for people to buy a health insurance policy at the earliest age, mainly near the 20s. Finally, yet importantly, people buying any policy should consider its terms and conditions. Each policy has its benefits, and the coverage varies from company to company.

Over to you

Did you buy a health insurance policy at an early stage? How did it help you? Share your experiences in the comments.

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Disclaimer: We're not offering any medical advice here. These ideas are for educational and entertainment purposes only. Always seek a professional medical opinion from a physician of your choosing before making any medical decision. The information provided here is not intended to be a substitute to the advice given by your physician or another healthcare professional.

Disclaimer: Though the views expressed are of the author’s own, this article has been checked for its authenticity of information and resource links provided for a better and deeper understanding of the subject matter. However, you're suggested to make your diligent research and consult subject experts to decide what is best for you. If you spot any factual errors, spelling, or grammatical mistakes in the article, please report at [email protected] Thanks.

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