Reasons to Buy Health Insurance in Your 20s
In today's era, most people are aware of the importance of health insurance. However, some individuals consider health insurance as something only old and unhealthy people need.
Having such a notion is not just misleading, but could also prove very costly later in life.
Confused? Take a look at the example below for a better understanding:
Varun, a 24-year-old, came to Delhi for his first job after completing his B.Tech. He lived in a PG with his colleagues. Late-night work, unhealthy eating, and drinking habits led him to the hospital. On diagnosis, he was found to be suffering from severe food poisoning. The medical treatment cost him over a lakh, which he paid out of pocket as he did not have a health insurance policy.
This was a turning point for Varun, making him opt for a health insurance plan to cover accidents, medical treatment, and other health emergencies.
For individuals like Varun in their 20s, getting health insurance early in life has considerable benefits.
Benefits of Health Insurance in Your 20s
Protection Against Unhealthy Lifestyles
Today, with sedentary lifestyles, health issues are becoming extremely common. Therefore, having a health insurance policy is important, as it acts like a financial safety net during times of need.
Lower Premiums
The policyholder's age plays a significant role in premium calculation. As an individual grows older, health starts deteriorating, and the need for medical treatments increases, which in turn increases the premium amount. However, when the policyholder is young, the chances of health issues are quite low, resulting in comparatively lower premiums.
Overcome the Waiting Period
Every health insurance company includes a waiting period, during which claims cannot be made for certain diseases, specific surgeries, pre-existing illnesses, and special treatments. This waiting period generally varies from 24 to 48 months. At a young age, it is easier to complete the waiting period, as the chances of developing diseases and illnesses are comparatively lower.
Better Financial Planning
Having health insurance plays a major role in overall financial planning. Additionally, you can claim a tax deduction on premiums paid under Section 80D of the Income Tax Act, 1961. Thus, you can invest the money saved from taxes to fulfill other future aspirations.
Lower Rejection Rates
Individuals in their 20s are less prone to critical diseases, which means the chances of filing a claim are lower. A young individual is less vulnerable to severe health complications, reducing the chances of claim rejection.
Earn No Claim Bonus
An individual is eligible for a No Claim Bonus (NCB) if no claims are made during a policy year. With continuous renewal of your health insurance policy, this bonus accumulates and can be availed later. Buying health insurance at a younger age allows you to earn a higher NCB compared to someone who starts later.
Cumulative Bonus
If you don't file any claim during the policy tenure, you're eligible for a Cumulative Bonus, which increases your sum insured amount without extra premiums. Since young individuals are less prone to serious ailments, the chances of filing a claim are lower, enabling them to be rewarded with a Cumulative Bonus.
Summing It Up
Why wait to be in a vulnerable health position, forced to arrange money for treatment costs? Therefore, it is always better to buy health insurance as soon as possible. Buying health insurance early in your twenties not only ensures your finances are safe during a medical emergency but also frees you up to make other important financial decisions later in life.
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The Benefits of Health Insurance in Your Young Age
Hey there! Ever wondered why health insurance is so important, especially when you are young? Well, we've got all the answers in our fun and easy-to-watch video! From dodging pricey premiums to staying ahead of unexpected health stuff, we've got you covered.
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