Why you should get health insurance early on in life

We can never be sure of what our future holds. Insurance acts to shield us against events and uncertainties that are mostly unforeseen. Health insurance is one such essential component inherent to our health and financial well-being. Be it an accident or a sudden illness, having a health insurance cover will ensure that you are financially equipped to pay off the bills on hospitalisation and subsequent treatment.

Let’s understand why it’s important to buy a comprehensive health insurance plan early on in life:

Why buy health insurance at a young age?

Early enrolment in health insurance plans offers many advantages. One is more likely to remain at the peak of health when you are young. Hence, the right time to purchase a health insurance policy is when you are at the peak of your health and your internal and external body parts are in good shape.

Low premium: Health insurance premiums are surprisingly affordable if bought early in life. This is because health insurers charge low for young customers citing the low likelihood of them falling ill. Premium charges are more for old people or those who have had a long history of critical illnesses, thus, explaining why it is important to allocate a part of our earnings to buying health insurance early in life to benefit from high cover at low premium charges.

Waiting period: The waiting period of a health insurance policy signifies the number of days before which the policy benefits come into effect. This means that before the waiting period ends, you cannot make claims or avail the benefits of a health insurance plan. Some plans have a 15-day initial waiting period, some have up to 30 days. Also, the pre-existing waiting period ranges from one to four years. Since a younger person is typically free of any severe medical conditions, they can easily get through the waiting period. On the other hand, as people age, they have an increased chance of developing health problems. As a result, if a person purchases health insurance at an older age, they might need to make a claim before the waiting period is over and subsequently, have their claim denied in such cases.

Tax benefit: The premiums paid on health insurance plans are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. What’s more is that you can also claim deductions on the health insurance premiums paid to cover your parents, spouse and children. Although the same benefit is available when one opts for the health insurance policy in their later years, purchasing it early results in superior net tax savings over the course of one’s career.

Lifestyle changes: High adherence to a disciplined lifestyle is now passe. What’s more concerning is that health illnesses are no longer limited to minor problems but often have worsened into critical disorders becoming pervasive across every age group. Securing health with a comprehensive health insurance plan ensures both health and financial security in the long run.

High inflation: Besides the rise in prices of certain essential and luxury items, inflation has also led to increasing treatment expenses. In this scenario, you must have something that you can hold on to for paying your medical expenses. This explains why you must buy a health insurance plan while there is still time.

Financial coverage: Irrespective of how sound your financial plan is, getting treated for a major disease or disorder can cause a major dent in your savings.

A complete healthcare insurance plan with adequate coverage can cover the expenses such as doctor’s consultation fees, prescribed diagnostic tests, pharmacy, hospitalisation, ambulance, and post-hospitalisation too without requiring you to spend your hard-earned money.

To sum up, health insurance is no longer an option but a necessity today. Thus, the need to avail of the right health insurance at a young age cannot be negated. This is because an adequate health insurance cover gives lifetime access to high-quality healthcare, gives you much-needed peace of mind and keeps you and your family clear of the financial burden of life.

(The writer is Managing Director and Chief Executive Officer, ManipalCigna Health Insurance Company Limited)