It’s never too early to start thinking about health insurance. In fact, buying a policy in your twenties can be a very wise decision. Here are ten reasons why:
Now let’s look at 10 reasons why buying health insurance in your 20s is a good idea:
Health insurance in your 20s is cheaper than when you are in your 30s or 40s. It takes time for medical issues to crop up which can substantially raise health insurance premiums in later years. Look at it this way, if you plan on living another 50 – 55 years (the average life expectancy for an Indian male), then buying a policy in your twenties ensures that you don’t pay more later on.
No waiting period:
When you buy health insurance in your twenties, there is no waiting period involved except for pre-existing diseases (which are covered). But many times even after getting these diseases treated, the insurer refuses to cover them until some waiting period has passed. In some cases, you might have to work for a few years with a company before being eligible to buy a health insurance policy which will be available only after the waiting period is over.
Avail tax benefits:
On buying a health insurance plan in your twenties, you become eligible for income-tax benefits under Section 80D of the Income Tax Act. However, this benefit is applicable only if premiums are paid from your own resources and not from that of your employer’s. In any case, it is advisable to keep receipts of payment just in case someone asks for them later on. Also, note that these tax deductions apply only to certain specified diseases under Section 80D and not all diseases covered by the policy ( see table ). For example, you cannot claim tax deductions on ailments such as common cold flu, or asthma.
Most health insurance plans in your 20s will cover a wide range of treatments and medical tests which include some very important diseases like heart conditions. However, the more expensive policies might not be available for young people or those with pre-existing medical conditions or not offer some existing treatments at their full cost. So it is advisable to do a little research before finalizing a policy. Do check whether the company has tie-ups with hospitals that provide international standards of care where you live or plan to live in the future.
Lower rates of rejection:
The chances of an insurer rejecting your health insurance claims are comparatively lower in your 20s. This is also true for people who have pre-existing medical conditions because the insurer covers these diseases from day one. As you grow older, more and more diseases (acute and chronic) will start cropping up which makes it difficult to get cover when you need it most.
No-claim bonuses are one of the main reasons why health insurance in your 20s is a good idea. Many insurers offer great discounts in premiums after a person has not made any claims in a particular policy year. Some companies give 50 percent discount while some others offer 30 percent on renewal of policies, making them quite affordable even in higher age brackets. You can avail of this benefit only if you buy health insurance in your 20s and maintain a healthy lifestyle through the policy year.
Benefit from family plans:
Many insurers offer such plans that cover children as well as parents or even grandparents under one umbrella. You can buy individual policies for yourself and your spouse, but it is always better to opt for family floater policies which not just help you save on premiums but also prove more beneficial during claim settlement. This kind of policy covers all members of your family living under the same roof and will be valid up to 35 years of age (for some serious ailments) or so depending on the insurer.
Health insurance companies that offer dental care along with treatment expenses are more popular these days than those that don’t. Many companies also offer some free checkups and cover dental problems like loss of teeth, abscesses, etc. So buying health insurance in your twenties becomes an even more attractive proposition for people who value good oral health.
No claims bonus:
If you are buying a new health plan for the first time, most insurers give a no-claims bonus, which is an incentive to return customers. Also, your earlier claim record will be considered when renewing or purchasing another policy. It is advisable to go through the company’s renewal documents before finalizing the policy so that you can know about all benefits available at renewal. However, if you had made any claims during previous policy years, then it is wise to check whether you are eligible for a no-claims bonus or not.
Level of premium increases:
Health insurance policies in your twenties have low premiums as compared to the other age groups, which means that you will end up saving more during later years. However, there are chances that rates increase if you are not able to give satisfactory answers to questions regarding lifestyle at the time of buying policy or renewal. You can avoid it by sticking to healthy living practices throughout life.
So do an over-to-under checkup regularly and take care of your health before getting older!
Long Story Short:
In your twenties, you are in the healthiest phase of your life. You can buy an inexpensive policy and save a lot of money when you grow old because premiums increase with age.