The tax benefits of buying health insurance at a young age

With the rise in lifestyle-related diseases, it is more necessary than ever for everyone, regardless of age or income, to have a health insurance plan. Early adulthood is a period that necessitates meticulous financial planning. One of the most important components of your long-term planning should be a carefully planned health insurance cover that saves you from the medical expenses you may incur later in life. We at Aditya Birla Health Insurance always encourage youngsters to be smart about their health insurance, and thus, today we will talk about the numerous benefits of buying health insurance at a young age.

Tax benefits of buying health insurance

It is advantageous to purchase a health insurance plan when you are young and have a source of income. If you pay a premium, you can claim a tax deduction of up to Rs 25,000 on health insurance premiums for yourself, your partner, and your children under Section 80D of the Income Tax Act. If your parents are economically dependent on you, you can also receive a tax benefit of Rs 50,000 on their health insurance premium.

Additionally, purchasing a health insurance policy when you are young allows you to take advantage of tax benefits for a longer period which means you save more.

Being able to build a good claim history

It is a well-known truth that the best time to purchase health insurance is when you are healthy, fit, and your vitals and organs are in peak condition. If you are young and healthy, not only will your premium be lower, but you will also have a significantly reduced chance of filing a claim. This is an under-rated benefit of your age but if done correctly, can establish a perfect claim history with the insurer which is extremely beneficial down the line.

प्रतीक्षा अवधि

The benefit of purchasing a health policy when you are young is that when you get older, most of your current ailments will automatically fall within your health coverage scheme. Several pre-existing conditions have a waiting period before they can be covered by your health insurance company. The waiting period can be anything from a month to four years. When a health insurance policy is purchased early in life, you can easily go through the waiting time without having to worry about a medical emergency.

Health insurance premiums are inexpensive at a young age

Many people wonder if their health insurance premiums increase as they get older. Yes, the cost of health insurance rises as you get older. The greater the health risk, the higher the health insurance premium. A 21-year-old, for example, is less susceptible to diseases than a 51-year-old. Thus, you can acquire a much greater level of coverage for a lower rate at a young age.

Lesser exclusions from the policy

To keep the risk rate low, health insurance firms typically impose exclusions for all ailments you've had or conditions that are likely to develop in the future, but we at Aditya Birla Health Insurance try to reduce exclusions as much as we can because you may not be able to enjoy the full coverage due to such exclusions. Thus, you are most likely to get a full-fledged health cover if you purchase it early when you are not suffering from any severe or major ailment.