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There is an old saying “Health is Wealth”. With the change in lifestyle, increasing pollution, hectic schedules, the health of every person is deteriorating. Apart from that, increasing health care, medical expenses and the ever-increasing number of diseases, health insurance becomes important for every person. Health insurance policies provide financial backup to the insured person at the time of medical emergencies. So, it is advised to buy health insurance in your young age.
The life expectancy of people has indeed increased because of advanced medical treatment, but the number of diseases affecting the young generation also increased. India is in 1st position in the number of patients suffering from diabetics and hypertension.
Health insurance covers the medical expenses of the insured person. Either the insured person gets the reimbursement of medical expenses from the insurance company or the insurance company pays directly to the hospital.
With the number of diseases affecting the young generation is increasing and increasing medical expenses, the importance of health insurance can’t be avoided but unfortunately, health insurance penetration is very low especially in developing countries. No doubt health insurance is more popular than term insurance; still, most people are not aware of it.
There is a myth among the young generation that health insurance is only for old people. But this is not true; in fact, health insurance companies want the young generation to purchase health insurance policies.
Best time to Buy Health Insurance Policies
With the increasing cost of medical expenses, it is wise to purchase health insurance as early as possible. There are many benefits if you buy health insurance policies before you turn 30.
9 Reasons to buy Health Insurance before you turn 30
1. Low Premium
The premium amount of health insurance depends upon age, medical history, city of residence etc. Generally, the premium amount of young people is low as compared to old people. So, if you purchase a health insurance policy at a young age, then you have to pay a low premium amount.
At 25, the premium amount of health coverage of Rs 5 lakhs cost you Rs 5000 which will increase to Rs 6,000/- at an age of 40 years and further increased to Rs 8,000/- when you cross the age of 45. So, buy health insurance policy early to book the policy at a low premium.
2. Rising Medical Cost
The health care and medical costs are very high. According to various studies, 36% of Indian families can’t afford a private hospital during emergencies and 27% of patients die in India due to lack of timely medical attention.
Even today, the majority of Indian depends upon their savings in case of medical treatment. In medical emergencies, patients and his family end up all their savings and investments.
But if you purchase health insurance policies then your medical expenses will be either reimburses to you or the insurance company pay your medical expenses directly to the hospital.
3. Pre and Post hospitalisation expenses
Nowadays, health insurance policies not only cover hospitalisation expenses, but also the cost of OPD (out-patient department) expenses, day-care procedures, ambulance fees, non-hospitalisation costs and vector-borne diseases. Most health insurance plans have maternity benefits which also cover newborn baby without any additional premium.
4. Lower Chance of Rejection
It is not easy to get health insurance with medical history. Many insurance companies either reject the application or charge a very high premium amount if the person has a medical history of a critical illness like cancer or heart disease.
Young and healthy people are less likely to have any critical illness. The risk of young people is very low. So, most insurance companies accept the application of young people.
5. Changing Lifestyle
There is a drastic change in the lifestyle of people in the last few decades. Now junk food, hectic schedules, lack of physical exercise, job-related stress increased the chance of diseases in young people. Diabetics, kidney problem, heart problem, blood pressure etc. has not remained the disease of old people only. Now young people including children are also suffering from these diseases. Before any serious health problem, it becomes very important to get a health insurance policy at an early age.
6. Financial Planning
Buying health insurance policies at an early age help in financial planning. Your policy covers your medical expenses in case of unfortunate accidents or any illness.
After purchasing health insurance policies, you don’t need to worry about high medical expenses. Instead of saving money for emergencies, you can invest your additional money in different investment options.
7. Waiting Periods
Many health insurance policies have waiting periods ranging from 30 days to 4 years during which you cannot claim insurance amount even in case of medical emergencies. Buying health insurance policies at an early age is an advantage for you. In young age, there is very little chance that you will require insurance benefits. Not claiming any insurance benefit help you to ride waiting periods without any concern.
But if you purchase health insurance policies after 60, then the waiting period will be longer. You won’t be able to take the benefit of insurance policies. So, buy the policy at your young age so that you can access the benefit of the policy when you fail ill.
Almost every insurance company offer “no-claim bonus” to their policyholders in the absence of any claim in the preceding year of the policy term. If you buy the insurance policy at a young age, there is a higher chance that you will not make any claim in initial years. Not making any claim helps you to accumulate “no-claim bonus” which significantly increase your total coverage amount and prove to be an advantage at the later stage of life when you will become old.
9. Your company insurance is not sufficient
With the increase in medical costs, your company insurance might not be sufficient. Most company insurance comes with insufficient coverage and if you don’t have your insurance policy then you might be in trouble in case of emergencies.
Further, the company’s insurance ceases when you leave your employer and there is no surety that what type of medical coverage you get from your next employer.
Health insurance policies become important for young individuals also. Most individuals ignore the health insurance thinking that it is only for old people. But in reality, insurance companies want the young generation to purchase the policy as there is a low risk of any health problem to younger generations. Purchasing health insurance policies become easier nowadays. You can compare different policies online and purchase the policy which is best suitable for you.