From saving big on taxes to becoming financially prudent, starting young helps you make the most of your health insurance policy
Being in your late 20s or early 30s is a rollercoaster ride. We have so many goals and dreams to achieve – not to mention the constant hustle! One on hand, there are student loans to be paid off and the urge to become independent. On the other hand, there’s impulse spending and wanting to enjoy life. Who wants to ever miss out on a party when they’re young?
Growing up also means understanding financial planning better and working towards safeguarding ourselves and our family's health and wellbeing through a comprehensive group health insurance policy, life insurance, mutual funds and other investments. It’s a phase where we understand why savings matter, and curbing your credit card usage a year ago, would have probably been a great idea!
Let’s get down to business
When we’re young, we are fit and healthy; corporate health insurance is not usually our priority. We are so busy exploring life that we often forget that even youngsters aren’t immune to health-related issues. Medical complications increase with age, but why do you think there was a sudden influx of people trying to get insured since the onset of COVID-19? It is because of the realisation that one can no longer correlate diseases with age. Also, certain events like accidents can affect people of any age and health insurance policies cover such eventualities.
It is smarter to get a job that prioritises health insurance when you are young and healthy because it helps you manage your health and finance better in the long run. Buying health insurance at a young age leaves no scope for preexisting diseases and ensures early coverage. Most corporate insurance plans are scalable as per the changing requirements of one’s lifecycle, and not to forget, a family floater also covers your dependents.
Individual health insurance policies can be purchased after evaluating the specific requirements of the concerned individual and their family members. In contrast, corporate insurance policies provide coverage for as long as you are employed. Corporate policies provide insurance even to the youth so that they do not need an additional personal health insurance plan.
Most youngsters tend to lead a sedentary lifestyle, leading to an increased occurrence of lifestyle disorders claiming young lives. Therefore, it is imperative for you to insure yourself timely. Health exigencies may arise anytime and affect anyone, irrespective of age and income. The stress related to lifestyle changes and maintaining a healthy work-life balance takes a toll on most of us at some point in our life. Amidst all this, one thing certainly looks impending; the rising cost of hospitalisation. Thus, the most optimal solution is to buy a health insurance plan that suits our needs and ensures peace of mind.
So now that we have established that a medical emergency can arise at any time and can impact you financially and emotionally. Allow us to convince you further why it is prudent that you must buy a health plan early in life. Let us now shed some reasons combined with the benefits of having health insurance and leave it up to you to decide.
1. A good claim history in the making
The right time to get health insurance is when your body is in its best shape. You will pay lower premiums because you are in the pink of your health. Therefore, the probability of incurring a claim remains low. Leading a healthy lifestyle can also help build a good claim history with your insurer, which is quite the blessing in disguise.
2. Its raining bonus
For every year with no claim, you get additional coverage at no extra cost. Over time the amount of coverage multiplies. Staying healthy and running the policy consistently with your insurer without making any claims in a year leads to a no-claim bonus (NCB).
3. Waiting Periods and Pre-existing coverage
A waiting period is when you cannot claim some or all of the insurance plan's benefits. Therefore, the biggest advantage of buying a health insurance plan when you are young is surpassing these waiting periods related to any pre-existing ailments. The pre-existing diseases get covered usually after 48 months. If you had bought the plan early on, these pre-existing ailments would automatically get covered as you age.
4. No dents from accidents
As unfortunate as they are, accidents can happen to anyone at any time and anywhere. Thus, having a health insurance plan helps you save on hospitalisation costs as accidents are covered from the first day of the policy. It can be financially draining if an insurance policy does not protect one. Therefore, it is wise to get yourself insured no matter the age.
5. The ball of tax advantages will be in your court
According to the Income Tax Act, 1961, the premium paid towards health insurance qualifies for tax benefits up to Rs. 25,000, and these tax benefits can go up to Rs. 50,000 for the premium paid towards a health insurance plan in the parent's name if they are dependent on the children. Many corporate organisations also provide health insurance plans for their employees their employer covers. However, it ceases to exist with the employment duration.
6. Keep yourself and your life goals on track
Without a health insurance plan, one will have to redeem their existing investments to meet the hospitalisation cost, putting themselves at the risk of potential financial drainage. To protect yourself from being a victim of financial drainage, buying health insurance is ideal before saving for long term goals.
Author: Pragya Dwivedi
About the author: Writing is therapeutic to Pragya, and she pens down almost anything under the sun and fancies challenging topics. A full-time pet mom to a labrador retriever, Kaju, she loves binge-watching the latest shows. With a master's degree in Public Policy, she's currently a content intern at Nova Benefits.