In today's era, most people are aware of the importance of having Health Insurance. However, some individuals consider Health Insurance as something that only old and unhealthy people need.
Having such a notion is not just misleading, but also could prove very costly to the individual in the later stages of life.
Confused? Take a look at the below example for a better understanding:
Varun, a 24-year individual, had come to Delhi for his first job after completing B.Tech. He used to live in a PG with his colleagues. Late night work, unhealthy eating and drinking habits led him to the hospital. On diagnosis, it came out that he had been suffering from severe food poisoning. The medical treatment had cost him over a lakh, which was paid out of pocket as he did not have any Health Insurance Policy.
This was a turning point for Varun, making him opt for a Health Insurance Plan to cover accidents, medical treatment, among other health emergencies.
For individuals like Varun in their 20s, taking Health Insurance early in life has considerable benefits.
Protection against Unhealthy Lifestyle
Today, we all have a sedentary lifestyle & health issues are becoming extremely common. Therefore, having a Health Insurance Policy is important, as it acts like a financial net during the need of the hour.
The policyholder's age plays a very significant role in the calculation of premiums. As the individual grows older, the health starts deteriorating too, and the need for medical treatments also increases, which in turn increases the premium amount. However, when the policyholder is young, the chances of getting health issues are quite less, and hence the premiums are comparatively lower.
Overcome the Waiting Period
Every Health Insurance Company comes with a Waiting Period, wherein one cannot make any claim for certain diseases, specific surgeries, pre-existing illnesses, and special treatments. This Waiting Period generally varies from 24-48 months. At a young age, it is easier to serve the Waiting Period, as chances of catching diseases & illnesses are comparatively lesser.
Better Financial Planning
Having Health Insurance plays a major role in overall Financial Planning. Also, you can claim a Tax Deduction on the premiums paid under section 80D of the Income Tax Act, 1961. Thus, you can invest the money saved from taxes to fulfil another future aspiration of yours.
Lower Rejection Rates
Individuals in their 20's are less prone to Critical Diseases, as a result of which, chances of filing a claim by young people are less. A young individual is less vulnerable to severe health complications which negate the chances of getting the claim rejected.
Earn No Claim Bonus
An individual is eligible for a No Claim Bonus if he/she has not made any claims during a policy year. On continuous renewal of your Health Insurance Policy, this bonus gets accumulated and can be availed later by the policyholder. Buying Health Insurance at a younger age allows the individual to earn a higher amount of NCB as compared to an individual who begins investing a year later.
Why wait to fall into a vulnerable health position, and be forced to arrange money to overcome the treatment cost? Thus, it is always better to buy Health Insurance as soon as you can. Buying Health Insurance early in your twenties not only ensures that your finances are safe during a Medical Emergency but also frees you up to make other important financial decisions farther down the road.
Written By : Naval Goel
Last Updated : September, 2021
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