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Words of Wisdom : "Try to be a rainbow in someone's cloud." ~ Maya Angelou

Buy Your Health Insurance Policy Before 40

There is no denying the fact that health insurance cover is extremely important.

Bearing the exorbitant costs on medical treatment, is simply impossible for most people. Many families have gone bankrupt due to just one (unfortunate) illness. 

The tragedy is that such financial distress could have been avoided or at least mitigated. Health insurance policies are Easy, Efficient and Economical solution to this problem. In fact, it won’t be wrong to say that Health Insurance equals Wealth Insurance.

Hence, there is no reason whatsoever why you shouldn’t have such a protection.

Further, the earlier you start the better it is:

However, very few people buy an own health insurance cover during the early years. The probable reasons for this are:

One. As they are already insured under the employer’s group medical insurance policy, they consider another policy as a waste of money.

However, given the job uncertainty, it is advisable not to depend solely on the employer’s policy. Also, to save on costs, the employer’s policy may not always be as comprehensive as your own cover.

Two. Since the likelihood of claims is low in early years, they don’t want to put money where it is likely to go waste.

However, given the many advantages listed below, the premiums payable in the early years should be looked upon as an investment and not a (wasteful) expense.

Some of the key benefits of buying health insurance cover at a young age are as under.

1. Nil or minimal Medical Tests
In case of young policy buyers, the health insurance companies generally do not insist on prior medical check-up. Or, at best, medical tests required are the bare minimum.

However, older people have to go through complete medical check-up, before the insurance companies decide to cover them.

By insuring yourself and your family at an early age, you can avoid the medical tests and the consequent risk of rejection.

2. Lesser premium burden
At young age, the risk of medical ailments and illnesses is comparatively lower. This risk increases with age.

Therefore, it but natural that the premium charged to young policy buyers is less as compared to premium for elder people. As you age the premium too increases.

By insuring yourself and your family at an early age, you can get the health cover at substantially lower premiums.

3. No cover during waiting period
Health insurance normally does not pay for certain specified diseases and ailments, for an initial period of 1-2 years.

When you buy a health insurance cover at a young age, likelihood of claims is quite low during these early years of the policy. Later, this may not be the case.

By insuring yourself and your family at an early age, you can minimize the risk of claim rejection on account of this ‘waiting-period’ clause.

health-insurance-at-early-age
Health insurance at an early age is NOT a wasteful expense.

4. No cover against pre-existing diseases
You would probably have no pre-existing illness, when you buy a health insurance cover at a young age.

Later, this may not be the case.

As you know, health insurance cover is normally NOT AVAILABLE for pre-existing illnesses for a period of 2-4 years. 

By insuring yourself and your family at an early age, you can minimize the risk of claim rejection on account of this ‘pre-existing diseases’ clause.

5. No-claim bonus
Many policies offer benefits — such as increase in cover at no extra cost, free medical check-up, etc. — provided you don’t make any claims during a certain specified period.

Buying a health cover at an early age increases the chances of having more years of no claims.

By insuring yourself and your family at an early age, your chances of becoming eligible for ‘no-claim bonus’ are quite high.

6. Not losing the tax benefits
Premium paid towards health insurance policies is eligible for tax deduction u/s 80D.

If you haven’t bought a health insurance plan you are paying more tax, as you cannot claim any deduction for the premium paid from your taxable income.

By insuring yourself and your family at an early age, you save on taxes too. This brings down the overall cost of insurance — which, by the way, is already quite reasonable and affordable.

7. Ease of online facility to buy a policy
Young policy buyers can generally buy the policy online without any medical tests.

However, as the age increases and the medical check-up become mandatory, insurers may not offer an online alternative to buy a health policy.

By insuring yourself and your family at an early age, you can enjoy the convenience of buying your policy on the internet, from the comfort of your home or office and with minimal paperwork.

Concluding: There are many benefits of buying a health insurance policy and buying it early. If you are still uninsured, go for it NOW.

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