In today’s fast-paced world, the importance of health insurance has become one of the priorities for an individual to maintain their financial stability. Moreover, the younger generation have started to be more proactive in terms of health insurance.
According to our new health normal report, 85% of Indians aged between 18-25 are considering cutting down on some luxury items to spend more for their health insurance. Unbalanced diets, irregular sleep patterns, and demanding lifestyles have led to an upsurge in lifestyle diseases among young people. Moreover, the relentless grind of extended work hours is not only impacting their mental well-being but also taking a toll on their physical health.
But again the question arises, why spend money on health insurance at such a healthy age? The main focus of people at the age of 25-35 years is to work towards their professional growth and achieve their financial goals. However, it is also necessary to lay the groundwork for future security as well amidst the professional milestones. Therefore, a comprehensive insurance plan insures your future and takes care of your present health.
Affordable premium
The premium of a health insurance policy increases with the age of the policyholder. Due to a healthier body in general, a young adult can buy health insurance at a low premium and it is much easier to pay the premiums when the responsibility is relatively lighter.
A key to all solutions
A comprehensive insurance provides not only health cover but fulfils the basic needs of a young adult. Health insurers have designed products which offer preventive services such as vaccinations, regular health check-ups and also take care of their holistic well-being by providing mental health consultation, maternity covers, etc.
Pillar of financial and health protection
Health insurance can act as a crucial safeguard for unforeseen future medical expenses. It provides safety to an individual and their family from expenses including hospitalisation, surgeries, diagnostic tests, medications, and doctor consultations reducing the immediate financial burden
Waiting period
It is the time duration when you are not allowed to make health claims for certain diseases, some surgeries & special treatment. If a person makes a decision to buy health insurance at a young age, he/she passes this waiting period.
Coverage duration
Age criteria is one of the important aspects while buying a health insurance plan. Starting the policy at a young age will ensure a longer protection period for an individual and a higher chance of profile acceptance as compared to people at the age of 50-60 years.
Other benefits of buying early
A few insurers have launched innovative products just for the young segment with benefits like “Upfront discount”, “early buying discount” that can help save on high health insurance premiums in the future with increase in age, “financial and other incentives” for staying healthy thereby motivating the customer to improve their lifestyles and become healthier.
Claim bonus
An added advantage of buying health insurance is the sum insured for every claim-free year. There are lower chances of any major health concerns at a young age which increases the chance of policyholders gaining no claim benefit for a longer period.
Tax benefit
Health insurance premiums qualify for tax deduction under section 80D of the income tax act which acts as an additional way of tax savings. (Subject to change according to the tax laws)
Added perks
Health insurers have introduced a wide range of supplementary products for the youth which only covers their insurance but also encourages them to lead a healthy life. These supplements or health riders provide a wide-range to cover various health related expenses and are affordable at minimal cost.
Conclusion
Covid -19 undeniably changed the perception of people towards health insurance and encouraged people to prioritise their well-being. This is achieved through consistent health monitoring empowering individuals to proactive change to enhance their health.
In a world where youthful ambition often goes hand in hand with exciting possibilities, health insurance emerges as a reliable partner, ensuring not just financial security, but also the holistic well-being of the youth of today.
Anuradha Sriram, Chief Actuarial Officer, Aditya Birla Health Insurance
