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As a result of an increase in health risks and widespread exposure to COVID-19, there is an immediate requirement for rigorous health protocols. These must deter harmful bacteria in the environment and protect us from diseases that cost lakhs in hospital bills and emotional stress. Not everyone can afford high medical costs. It thus becomes prudent for anyone considering Health Insurance coverage to do so as a protection against sudden financial burdens arising from health hazards.Many mistakenly believe that purchasing Health Insurance is only necessary for elderly individuals. They think it only makes sense for those significantly older and prone to health risks. This assumption, however, doesn't stand up in reality as age does not determine potential risks, and therefore, you need protective measures. Individuals of all ages should consider purchasing Health Insurance. Buying Health Insurance Online makes this even simpler.
Benefits of Purchasing Health Insurance Early
Now that we understand that Health Insurance plans are vitally important not only to elderly individuals but also to youth let's examine some additional benefits of a Health Insurance plan in your 20s.
1. Waiting period
Health Insurance policies have periods during which those insured cannot file claims, even in an emergency. For most plans, this waiting period typically lasts 30 to 90 days. However, specific policies could last as long as four years. When purchasing Health Insurance before age 30, you can wait it out with minimal health risks.
2. Wide coverage at an affordable premium
Individuals under 30 are less likely to develop severe illnesses, and most insurance companies calculate premiums accordingly, charging lower premiums to those between the ages of 20 and 30. Buying Health Insurance early provides comprehensive protection.
3. Duration
There is no maximum age limit after which you cannot buy Health Insurance. IRDAI has specified that the upper age limit is 65 years. But this limit is purely to standardise things and is at the discretion of the insurance companies, whether they want to implement it or not. Also, this limit does not affect your ability to enjoy the coverage after crossing the specified age limit. Still, if imposed, it does limit your ability to buy a new insurance plan. Therefore, regardless of the age limit, if you purchase Health Insurance at an early age, you can reap its benefits for a longer duration.
4. Broader coverage
Insurance companies typically offer more comprehensive coverage to people between the ages of 25 and 30 due to their lower susceptibility to illnesses or ailments than elderly populations. This expanded protection may cover diseases, OPD expenses, daycare procedures, maternity benefits, post-maternity expenses, and many personalised solutions tailored to each individual's needs.Also read: How Are Day Care Treatments Different From OPD?
5. No Claim Bonus
Insurance companies often reward policyholders who demonstrate consistent non-claim behaviour over an extended period. This bonus may be either discounted premium payments or higher coverage, depending on your accumulated no-claim bonus amount. Buying Health Insurance at an early age allows more time for claims-free periods, and as you age and need premiums more frequently, NCBs could become increasingly helpful to secure better deals for yourself.
6. Pre-existing conditions
Health Insurance plans typically exclude pre-existing medical conditions from coverage for people in their early 30s due to their lower likelihood of possessing one. However, such pre-existing conditions could still have an impact later when cancer and heart conditions become more likely.
7. Variety of plans
As someone between 25 and 30, you have access to an impressively wide variety of health plans that allow you to compare coverage, premium amounts, and other pertinent parameters before selecting one as your health insurer.
8. Lower rejection rates
Young people typically experience lower rejection rates for applying for Health Insurance at an earlier age due to a reduced probability of sickness or medical condition arising; this trend correlates directly with a reduced likelihood of illness occurring as they age, increasing risk.
9. Tax savings
Health Insurance premiums can often be written off against taxes as deductible expenditures, offering added savings under Section 80D of the Income Tax Act on top of any deductions provided under Section 80C.
10. Free annual health checkups
Insurance companies often provide complimentary annual health checks for regular and long-term customers. It helps both parties learn about potential ailments, their causes, and possible remedies for early treatment.Also read: What is Reload Benefit in Health Insurance Plan?
The ideal age to buy Health Insurance
Health Insurance should be acquired when its value becomes clear; age should not dictate when this should happen. However, buying Health Insurance early will provide a better return on investment than waiting. Youth may perceive health risks as something to be concerned about later, but making an early purchase of Health Insurance is far more worthwhile.
The maturity benefits of Health Insurance
Policyholders can realise maturity benefits for long-term insurance plans, such as life or mortgage policies, that extend for 15 years or more. In the case of such policies, the policyholder is eligible to receive a lump-sum payout at maturity, provided that all premium payments have been made punctually and the policy term has been completed. Typically, individuals should buy a maturity benefit policy to safeguard their family against the risks associated with mortality.Also read: Understanding Micro Health Insurance and Its Importance in India
The length of a Health Insurance policy
Health Insurance policies are categorised into short-term and long-term based on their duration. A short-term policy usually offers coverage for just one year, after which its benefits expire. Annual renewal can be initiated by paying a renewal premium for short-term policies. Conversely, long-term policies extend health coverage without annual renewal fees, eliminating the necessity for regular premium payments.
Buying a Health Insurance policy online
In the past, acquiring Health Insurance was a complicated endeavour involving locating an agent, deciphering many options, navigating paperwork, and adhering to strict claim submission deadlines to realise its advantages. Integrating technology into the insurance sector has significantly transformed the customer experience. Gone are the days of cumbersome paperwork and claims filing procedures. Now, individuals can conveniently purchase Health Insurance through our online web portal and initiate benefit claims using the same streamlined process. Should assistance be needed, our dedicated helpline is readily available and staffed by team members eager to provide support and guidance.
FAQS - FREQUENTLY ASKED QUESTIONS
Am I eligible to use deductions available through my employer-provided Health Insurance policies ?
Under Section 80D, policyholders can only claim tax benefits from their paid insurance premium if they pay for it. Therefore, if an employer deducts premiums from your salary to purchase Health Insurance policies on your behalf, you are eligible for tax advantages; otherwise, if they do not include it as part of their salary charge, they do not qualify. Quickly negotiate this situation during employment for better tax and financial planning purposes.
What is a co-pay in Health Insurance ?
Co-pay is a term found in many Health Insurance policies wherein the insurance company and policyholder agree on sharing expenses regardless of claim amount, typically between 10% and 30%. It means that regardless of any expenses from health hazards that require reimbursement from insurers, a portion will need to be covered by the policyholder. Individuals need to understand that they may be responsible for covering any remaining amount that exceeds claim limits, as co-pay clauses can often be modified before purchasing an insurance policy.
What types of medical examinations must I undergo before buying Health Insurance ?
Pre-medical checkups are mandatory health examinations designed to verify any existing ailments a policyholder might be hiding from an insurance provider. These health investigations provide complete knowledge about their current medical conditions. Purchasing insurance policies early might not necessitate pre-medical checks since young people generally have lower probabilities of existing ailments. The decision ultimately lies with each insurance company and their policy coverage amounts. The number of pre-policy medical checkups required depends on factors such as the age of the insured individual, the coverage amount, and the policy's duration.
Can my elderly family members and I jointly purchase Health Insurance policies ?
Absolutely. Group Health Insurance policies usually work to the policyholder's advantage regarding cost savings and better coverage. Premium calculations consider your age and that of elderly policyholders when arriving at their premium calculations; they do not increase an individual's unit costs directly; somewhat, they vary due to age group differences in terms and conditions. Therefore, you should review them thoroughly for potential roadblocks to your claims process.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
