When you are in your 20s, you are open to new experiences. It is also one of the most crucial phases of your life. Whatever decisions you take at this time can influence your entire future. However, buying personal health insurance is one of the most overlooked decisions because most people are unaware of the importance of investing in an insurance plan at an early age.
It is common for people to falsely believe that personal health insurance is a problem for the future and not something they need to think about in the present. But, it is important to understand that a health insurance cover can help you protect your savings from the rising healthcare costs in India. Moreover, it is a cost-effective choice that one should make when they are in their 20s.
In this article, we will look at some compelling reasons as to why you need to buy personal health insurance when you are in your 20s.
- Low-Cost Premium
When you are older, your health is likely to suffer from a poor lifestyle and stressful jobs. Therefore, you would need medical treatment from time to time. But when you are in your 20s, you are at a relatively low health risk. Your insurance provider will decide your premiums on the basis of your current health status and your age.
If the insurer considers you a high-risk , they will charge higher premiums. On the other hand, since health insurance providers look at young people as low-risk profiles, they charge you lower premiums for the best personal health insurance plan. However, be sure to use an online calculator to calculate the premiums and choose the right insurance cover before investing.
2. Higher Coverage
When you take a health insurance policy in your 20s, it ensures that your coverage is higher and your premiums lower. Many plans these days offer you an expansive coverage that includes day-care to maternity benefits, among many others. However, your coverage costs will go higher as you age because you will likely develop medical complications.
3. Pre-existing Health Conditions
Buying a personal health insurance plan later in life will add to your financial burden and lower the benefits. In addition, if you have a pre-existing health condition, most insurance providers will exclude certain benefits from your policy that defeats the purpose of investment.
4. Waiting Period
In most cases, health insurance policies have a 30-day waiting period during which you cannot file claims. Moreover, insurers have different waiting periods for different health conditions, such as diabetes, heart disease, etc. Therefore, when you purchase personal health insurance in your 20s, the waiting period will be over long before you need to use the policy benefits. It is also advisable to buy a policy that offers you the lowest waiting period.
5. Eliminate the Risk Of Claim Rejection
Your health insurance claim may get rejected by your insurance provider if you have a serious health condition that becomes a higher possibility at an older age. However, the risk of claim rejection is significantly lower for a young person. Moreover, you may not even be required to undergo a medical examination when buying a health plan, making it easy to buy a policy online.
6. Tax Benefits
According to the Income Tax Act, the premiums paid towards your personal health insurance plan are eligible for tax deductions u/s 80D. You can also leverage these tax benefits when you invest in your 20s and take home a bigger salary!
7. Wide Range of Options
Buying a policy at a young age allows you to choose from a wide range of options. Insurance companies will let you choose from the best personal health insurance plans based on your needs. Additionally, you have the option of renewing your policy at various life stages. For instance, you may be able to opt for a family plan that provides comprehensive coverage to your partner and children as well.
As you attain financial freedom in your 20s, it is important to take your personal health into account. Keep these points in mind, and be sure to invest in a personal health insurance plan as early as possible. More importantly, it is crucial to choose a trusted insurance provide like Care Health Insurance to safeguard your financial future appropriately.
