scorecardresearchWhy you should buy a health insurance plan at an early age?

Why you should buy a health insurance plan at an early age?

Updated: 09 Jun 2023, 01:26 PM IST

By purchasing health insurance early, you can benefit from lower premiums, comprehensive coverage, financial security, preventive care, coverage for future family planning, flexibility and portability, access to a wider variety of policies and a lower rejection rate for claims.

Buying a health insurance plan early on can be a wise and beneficial decision

Buying a health insurance plan early on can be a wise and beneficial decision

Health insurance is a vital component of financial planning and personal well-being. While it may be tempting to delay purchasing a health insurance plan when you're young and healthy, there are numerous benefits to acquiring coverage at an early age. Here’s why buying a health insurance plan early on can be a wise and beneficial decision:

Lower premiums: One of the significant advantages of purchasing health insurance at a young age is the opportunity to secure lower premiums. Insurance companies typically calculate premiums based on the age and health status of the policyholder. By buying a policy early, you can lock in lower premiums since insurers perceive younger individuals to have fewer pre-existing conditions and a lower likelihood of developing serious illnesses. Taking advantage of lower premiums early on can result in significant long-term savings over the life of the policy.

Comprehensive coverage: Another benefit of buying health insurance early is the access to comprehensive coverage. Most health insurance plans come with waiting periods for pre-existing conditions. By obtaining coverage at a young age when you are relatively healthy, you can ensure that any future health issues or pre-existing conditions are covered without waiting periods or exclusions. This comprehensive coverage provides you with peace of mind, knowing that you are protected against unforeseen medical expenses.

Financial security: Health emergencies can strike anyone at any age, and the cost of medical treatments can be exorbitant. Having a health insurance plan early in life offers financial security by shielding you from the burden of high medical expenses. With the rising costs of healthcare, having insurance can help alleviate the financial strain and protect your savings. It also ensures that you have access to the best medical care without compromising on quality due to financial constraints.

Preventive care and wellness benefits: Health insurance plans often include coverage for preventive care services, such as annual check-ups, vaccinations, and screenings. By purchasing a policy early, you can take advantage of these preventive services, promoting early detection of potential health issues and enabling timely interventions. Regular check-ups and preventive care can help you maintain good health and prevent the development of serious illnesses.

Coverage for future family planning: Many individuals consider starting a family in their late 20s or early 30s. By purchasing health insurance at an early age, you can ensure coverage for future family planning. Maternity benefits, including prenatal care, delivery, and postnatal care, are typically included in comprehensive health insurance plans. Buying a policy early allows you to establish coverage for these services well before you plan to start a family, ensuring that you and your future children receive the necessary medical care.

Flexibility and Portability: Health insurance needs may change over time due to personal circumstances such as career changes, relocation, or marriage. By purchasing a health insurance plan early, you establish a history with the insurance provider, which can make it easier to modify your coverage or switch to a different plan when needed. Having a health insurance policy from an early age also increases portability, allowing you to maintain coverage regardless of your location or employment status.

Existing medical conditions: As a senior citizen, purchasing a health insurance plan will add to your financial burden and decrease the coverage benefits. Many insurance companies exclude coverage for pre-existing medical conditions in a standard policy if it is bought at a later age. Consequently, the true purpose of buying a health insurance policy is not fulfilled.

No claim bonus: Numerous insurers provide a No Claim Bonus (NCB) for not filing a single claim during the previous policy term. If you acquire a health insurance policy at a younger age, you can take advantage of this bonus to lower your premiums since you are less likely to fall ill and make a claim. This bonus can range from 5% to 50% of the insured amount and can be accumulated over consecutive claim-free years.

Lower rejection rate: While purchasing a health insurance policy at a young age, your susceptibility to critical illnesses or diseases is lower compared to individuals over the age of 60. Consequently, young individuals are less likely to file claims. This reduces the likelihood of having your claim rejected, as is often the case with older individuals.

Wider policy options: Choosing to purchase a health insurance plan at an early age provides you with a broader selection of options. With a youthful age and a lower risk of pre-existing conditions, you are eligible for most health plans. Before purchasing any online health insurance plan, be sure to compare various plans based on the insured amount, coverage, waiting period, network hospitals, and other benefits.

Buying a health insurance plan at an early age brings numerous benefits, setting a strong foundation for a healthy and protected future. Don't wait until health issues arise or you reach a later stage in life to consider health insurance.

By investing in a health insurance policy now, you can secure your well-being and gain peace of mind knowing that you are prepared for any unexpected medical circumstances that may arise along your journey.

Amrit Singh, Co-founder and CRO, Loop

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First Published: 09 Jun 2023, 01:26 PM IST