Health Insurance

Health Insurance

Health Insurance

            The first thing that comes to mind when you suffer from any medical condition is health insurance. You start looking up the financial coverage that will be provided to you.  The most prevalent opinion is that such situations only start to come up in your late 40s onwards. This is because people do not know the complete functioning of medical insurances plans.

            So, people seldom buy medical insurance at a younger age, believing that these products are useful only in the later years of life. But contrary to such beliefs, the truth is that you should get a medical insurance for yourself as early as possible. By doing so, you would get a wide range of benefits. These surely will be far greater than the benefits you receive if you buy health insurance later in life.

            Buying a health insurance at a young age has many benefits, like

#1     LOWER PREMIUM

            When you buy any health insurance, a fixed premium has to be paid annually.

But depending on the company, the plan coverages, and your age, this premium varies widely. Your insurance premium will be lower at early stages of life.

For example, if you buy a plan for Rs. 8 lakhs, you would possibly pay about 1.5-2% as premium at the age of 25. Whereas, if you buy the same insurance at the age of 60, the premium would rise up to 15-20% of sum assured.

 

#2     WAITING TIME

Insurance companies do not cover all pre-existing diseases right after you purchase their medical insurance. Most companies have a waiting time period on their insurance policies. This waiting time is usually 4 years. Certain illnesses get complete coverage only after this time period ends.

 

#3     NO FORCED MEDICAL CHECKUP

Medical insurers do not force medical check-ups for young people, which is otherwise compulsory for older people who buy insurance.

 

#4     INCREASED SUM

Every year that you stick to the same insurance, and if the cover remains unclaimed throughout the year, an additional loyalty bonus is added to your proposed coverage sum, without impacting the premium you pay. This increases your total coverage sum.

 

#5     MORE OPTIONS

The number of companies that offer insurance coverage to younger people is far greater than those who offer it at later stages of life. This will increase your choice options, as you can compare a number of policies to find the perfect one that matches your needs.

 

#6     LONGER COVERAGE TIME

            Insurance policies always have an upper age limit. This means that after a certain age,

You will stop receiving policy benefits. So, if you get insured earlier in life, you get more coverage years.

 

#7     WORLDWIDE COVERAGES

Nowadays, younger people are busy with work and need to travel frequently. Most health insurance policies also cover immediate medical evacuation from any reachable place, and also help you to get the best medical help wherever you are around the globe.

 

#8     COMPREHENSIVE COVERAGE

            These insurance plans offer a wider range of medical coverage. But if bought later in life, a higher premium has to be paid. So, if such plans are bought when you are young, you would have to pay a lesser premium over a longer time period, hence increasing coverage.

 

#9     YOUR INADEQUATE EMPLOYER COVER

            Many young people feel that employer insurance is sufficient enough. But if you compare the coverage provided in those plans with the average healthcare costs for just 1 week of illness, you would surely consider buying a health insurance policy.

 

#10   TAX REBATES & SAVINGS

            The most beneficial part, along with medical coverage, is a tax reduction. By section 80D of the Income Tax Act of India, a maximum of Rs. 15000 tax waiver can be provided to a taxpayer ‘for insurance of self, spouse, or dependent children’.

Also, in the case of any medical emergency, health care costs can ring up to lakhs of rupees. If you do not have any such medical insurance, a huge chunk of your savings may get wiped off

 

So, there is as such no ‘right age’ to buy a medical insurance, but getting yourself insured is the most efficient way to avail the above said benefits. The sooner you get insured, the better.

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Pranay Wankhede XJ
The Risk Taker

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