In India, it is a common perception among people that buying health insurance is not important until they become old. It is also the reason why India has a high percentage of the underinsured population. But, the truth, as per the data from the health insurance industry is that with the rise in the number of people falling pretty to lifestyle-related diseases, it has become vital for everyone to buy a health cover at an early age. As a matter of fact, several financial planning experts suggest that you must invest in a good health insurance plan as soon as you get your first salary.
· Your premium is lower
In India, insurance companies consider the age of the applicant as one of the critical factors while determining the premium amount. So, the older you get, higher will be your premium. Whereas, if you buy a health insurance cover when you are young, you can get full protection at a much lower premium. This is mainly because when you are young, you have relatively fewer health issues, and the insurance companies will consider you as a low-risk insurance buyer.
For example, if you wish to buy a health plan for five lakhs at the age of 25, your premium would be roughly around 5000 INR. For the same policy, you may have to pay a higher premium if you buy it when you are 35 years old or more. Hence, it is better to buy health insurance online as early as possible at a lower premium.
· The sedentary lifestyle has increased the risk of illness at a young age
For today’s modern generation, hectic working hours, eating unhealthy food, the irregular sleeping pattern has become a routine. All these habits have increased the risk of lifestyle-related disorders like diabetes, obesity, hypertension, cholesterol problems and even orthopaedic concerns. With so much health risks, you must purchase a robust health insurance policy that covers various diseases to get the best treatment in case of an emergency without depleting your savings.
· Group insurance does not offer sufficient coverage
A lot of people in India tend to put off buying a health insurance policy because they believe that the health coverage provided by their employer is adequate. However, you must know that often the group health insurance policy provided by the employers have an insufficient cover. The sum assured may not be sufficient to take care of your medical expenses when you grow old. Also, if you leave the company, you do not have protection. Hence, it would help if you bought a health insurance policy personally.
· Financial Planning
Apart from getting the insurance cover at a lower premium, another significant benefit of purchasing health insurance at a young age is that it helps in your financial planning. The health insurance covers the expenses for accidents, and other medical emergencies, which means you can use your hard-earned money for investment purposes and grow your corpus. Additionally, you can also avail tax deduction on the amount paid towards the premium under Section 80D of the Indian Income Tax Act.
· No-claim Bonus
Most insurance companies in India offer No Claim Bonus/Cumulative Bonus to people who do not file a single claim applicant in the preceding policy year. When you buy insurance at a young age, you can get the benefit of NCB. You are less likely to file a claim, and consequently increase your coverage amount, which can be beneficial when you grow old and need higher coverage.
Thus, with so many advantages of buying a health insurance policy at a young age, it is better to get your health cover as early as possible.