Five Compelling Reasons To Get Health Insurance In Your 20s

Health insurance covers the cost of medical care. It is difficult to predict your health even though you manage an active lifestyle and do not pose hereditary risks. As per the type of insurance plan, the coverage extends medical and surgical expenses. Based on the terms of the policy the insured will pay the hospitalization bills and the insurance company will reimburse the costs.

Before subscribing an insurance policy, you should be aware of the features of the insurance policy. The chances of rejection are low when you pursue insurance policy during the 20s. You can go for the best medical insurance policy even though it is not the least expensive policy. The policy should be subscribed as per your current financial capability and future risk coverage. If plans are offered by employers, you should go for them based on their merit. In some cases, you might want to go for additional health plans in addition to the plan provided by the employer.

The following reasons compel a person to consider health insurance during the 20s:

Cost-effective

You will explore and experiment various things during the 20s. However, the money can be spent in a very efficient manner. If you take an insurance plan when you are young and active, the premium amount will be very low. At a low premium, you will enjoy higher benefits.  

·        The health will go down with the progress in age. Hence, medical attention is required quite often. During the 20s, the chances of getting ill or sickness will be very low.

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      The premium amount for health insurance is based on the risk factor associated with the insured. If the risk is low, the premium amount will be low.

·        As the chance of claims by people during 20s is low, less premium will be collected by insurance companies.

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      When you go for a health insurance plan during the 20s, you will enjoy low insurance premium and you will enjoy higher insurance cover.

No waiting period

·        Health insurance will be offered by the insurance company with a 30-day waiting period. If you are issued an insurance policy with a waiting period, you will not be able to claim the insurance cover during the waiting period. Even though there is a medical emergency, it is not possible to claim the policy during the waiting period.

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      The waiting period varies as per the type of disease and it varies from one insurance company to another company.

·        The waiting period time frame can be surpassed very easily when you go for a health insurance plan at an early age.

·        Hence, it is ideal to go for a health insurance plan during the 20s so that you will enjoy insurance cover at a lower premium and you can easily exceed the waiting period for various kinds of diseases.

Income tax benefits

The health insurance coverage will help you claim income tax deductions under section 80D of the income tax act, 1961. Instead of spending money on taxes, you can invest in future health expenses. Hence, it is considered as a wise investment option.

·        The earnings will increase at a consistent pace from the 20s and it will be at the lowest ebb after retirement.

·        The premium paid towards health insurance will be exempted from income tax and you can increase your saving potential on annual basis.

Diverse options

A young person can exercise a wide range of options in the selection of the insurance policy and features. The application of health insurance plan from a young person is readily accepted by most of the insurance companies. After reviewing the best insurance policies offered by various agencies, you can go for the best policy as per your needs.

·        The health insurance policy can be customized as per your needs.

·        As you go for a health insurance plan at a young age, you will be able to get benefits throughout your life.

·        You will get better renewal facilities when you buy an insurance plan during the 20s.

Financial planning

The insurance policy will help you accomplish financial planning in a very efficient manner. If you incur major health issue in the coming days, it will be covered by the insurance policy so that there will be less financial stress.

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      You will buy insurance policy willfully and will enjoy great peace of mind.

·        It is possible to support your family by being covered by a comprehensive health insurance plan.

If a person suffers from a serious health condition, the insurance policy proposal will be rejected by the insurance company. When you subscribe a health insurance policy during the 20s, it can be considered as a ‘value for money’ product. As you are required to diversify your investment options, you can consider health insurance one of the prime components of your investment option. Even though the financial returns are low with a health insurance, the objectivity is highly elated during the stressful time when the risk takes place.

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Are You Opting for Right Health Insurance? Here’re the Things to Consider

Health insurance is imperative these days, but, does this mean you purchase anything that goes off as health insurance or you club several policies? Certainly not! As per the experts say, one must aspire for a health insurance portfolio with basic health coverage that includes hospitalisation or medical expenses, a top-up policy to complement the existing coverage, a critical illness rider to support you financially in case a severe medical condition is diagnosed that demands immediate treatment or to bear the other expenses when you are no more the bread-winner of the family. 

However, it is advisable to carefully compare health insurance plans on parameters such as the inclusion of critical illness, pre-existing illness or accidental cover before zeroing in on something.

Now, you’re wondering how to do this, right? Start with this:

Decide the Basic Cover

Also known as indemnity policy, it pays for hospitalisation costs including pre and post-hospitalisation expenses. Always try to buy a policy with fewer restrictions, even if the sum insured is small. Insurers pose restrictions on sub-limit, room rents, some specific health conditions, waiting period, co-payment, that may impact adversely at the time of claim. As long as it is affordable, ignore these.

Also, try to avoid add-ons that you actually don’t need. It will help reduce your premium rate. One can avoid consumer-specific add-on like OPD (out-patient department). The benefits offer under this rider are still insufficient as the premium cost is close to the benefit offered. By not adding this you can save something.

Go For Family Floater

Buying separate health insurance plans for each family member doesn’t make sense. We’re sure, you’ll look for a plan that covers you and your entire family, right? Here comes the Family Floater plan in the picture. These plans are cost-effective. It covers entire family under a single plan on the payment of single premium. Whenever a claim is made, the sum insured reduces for the rest of the members. Keeping this in mind, most of the insurers offer to restore benefit-where sum insured can be restored even after a claim is made. This feature makes the plan meaningful and approachable. However, we suggest buying a separate health plan for your elderly parents with pre-existing illness. Because, after the age of 60, the premium costs increases and there are specific health plans designed for senior citizens, that one can avail at a cheaper rate.

Consider a Top-up Policy

Consider adding a top-up policy with your regular health insurance plan. It is a regular indemnity plan that pays for hospitalisation expenses but only after a

You can use a top-up policy to be adequately insured. A top-up is a regular indemnity plan that covers hospitalization costs but only after applying the deductible amount, at the time of claim. So, it is beneficial if you use your regular health insurance plan to make a claim up to the deductible amount and beyond that use your top-up plan to cover the excess amount. This feature makes this plan cheaper, as higher the deductible, cheaper the top-up plan.

Add Critical Illness Cover

Take a moment to think what happen to your family if a critical illness leaves you unable to earn the income anymore? But, if you won a defined benefit policy, you can remain stress-free. A critical illness rider is the best option in such cases that pay lump-sum towards a diagnosis of a critical sickness. While medical rates are sky-rocketing, big concerns are cancer, heart-related illness, liver condition, kidney failure, coma, sclerosis etc. Make sure your critical illness plan provides assistance for these ailments.

We don’t deny that buying health insurance is vital, but what goes parallel is to ensure that there is no surprise at the time you make any claim. Remember, health insurance always comes with a pre-determined waiting period for pre-existing illness. Any claim arises due to these during the waiting period will surely not be accepted by the insurer. Also, at the time of taking up a plan, take the advantage to get a full health check-up done. This has a twofold benefit. Firstly, you will be sure about your health condition and secondly, there will be no confrontation on the pre-existing ailment, if any.

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