When you are young, medical issues are virtually non-existent. This could lead you to believe that buying health insurance is not that important right now. But did you know? Buying health insurance when you are younger has numerous benefits! In fact, every financial advisor and doctor will tell you to buy a policy as early as possible. Let’s find out why.
1. Lower premiums.
This is one of the most important benefits of buying health insurance when you are younger. As mentioned early, when you are in your 20s and early 30s, the risk of illness is quite low. Therefore, the premiums will also be on the lower side. However, as you grow older, the risk of illness grows. Keeping this in mind, insurance providers will charge a higher premium to provide you with coverage.
2. No waiting period.
With age, the chances of contracting a serious illness increases. Medical conditions like diabetes, high/low blood pressure, heart disease generally occur to men and women who are advanced in age. While it is possible to get a health insurance policy despite having such an illness, you should also remember that your plan will not cover the expenses arising from your pre-existing illness for at least 2 to 4 years. This period wherein your plan does not cover the medical expenses of your pre-existing illness is known as a waiting period.
Besides for pre-existing illnesses, most health insurance plans also have waiting periods for a few named illnesses & medical conditions such as tumours, maternity, ENT disorders, hernia, osteoporosis, and so on. Again, this waiting period is usually between 2 and 4 years. However, if you buy health insurance when you are young, you can negate these waiting periods with ease. This ensures that, if you are diagnosed with these illnesses later on in life, your plan will cover expenses right from the start.
3. No medical tests.
When you are younger, you are assumed to be healthy. Keeping this in mind, most health insurance providers will offer you protection without asking you to undergo any medical tests. However, as you grow older, insurance providers want to be extra sure before they provide you with a plan. Therefore, most health insurance providers will ask you to undergo a medical test before they set the terms & premiums of your plan. This can mean taking a day off from work or spending your weekly off getting tested in a pathological lab.
4. Lower chance of rejection.
The chance of contracting a serious illness grows with age. If you are diagnosed with a critical illness, there is no guarantee that insurance providers will offer you a plan at all. Some might even outright deny your application for a health insurance policy. However, when you buy health insurance early on in life, the chances of rejection are extremely low.
5. Tax benefits.
If you buy a plan when you are young, you can enjoy health insurance tax benefits for longer periods of time. Under section 80D of the Income Tax Act, you can reduce your taxable income by up to Rs. 1,00,000 based on your annual health insurance outgo. This can result in a significant amount of savings over the years.
These were 5 benefits of buying health insurance when you are young. We hope this article has been helpful and gives you the impetus needed to go out there and buy a plan ASAP if you don’t already have one!