Health Insurance proves to be an effective tool to provide firm financial protection in a rather fluctuating environment. Many people tend to squander time by waiting for the perfect age to buyHealth Insurance. However, when it comes to the question of what is the right age to purchase one, there is no better time than NOW.
According to a report by Motilal Oswal Financial Services, medical inflation in India has witnessed a steep increase of 14%. While medical tourism in our country is flourishing, we are also facing the burden of hefty medical bills. The constant rise in treatment costs year on year only adds to the worries. A report by the World Health Organization (WHO) shows that around six crore Indians are pushed into poverty solely due to medical expenses every year.
Considering the rise in medical costs and lifestyle diseases, it is always better to invest in a suitable Health Insurance policy sooner rather than waiting for the right time. There are many associated benefits that come when people purchase medical insurance at an early age.
One such benefit is that people can avail comprehensive coverage at an affordable premium when they buy Health Insurance at a young age. As health risks might be comparatively low for younger people, the number of claims they make might also be less. This reduces the liability of the insurance companies, as a result, they offer policies at less premiums.
Most policies, be it an Individual Health Insurance or a Floater Health Insurance, do not require people to undergo pre-insurance medical screening before purchase when they are young. Hence the chance of their application getting rejected is also low. Moreover, people have a wide range of coverage options to choose from when they are young.
Most Health Insurance plans come with certain waiting periods for pre-existing diseases (PEDs). At young age, people’s health risks will be comparatively low, as a result, they can easily pass over the waiting period without having to make any claims. When they age, they can easily raise claims, if necessary, without having to go through the waiting period. This is one of the important benefits of purchasing Health Insurance at young age.
Similarly, as the possibility of making claims at young age is comparatively low, people can earn a considerable bonus on their overall coverage limit. Many policies offer people a bonus of a certain percentage of the opted Sum Insured if they do not make any claims during a policy year. This feature is called cumulative bonus or no-claim bonus. Therefore, when people purchase policy at a young agetheir overall Sum Insured will increase due to cumulative bonus and they can use it for later stages of life.
Buying Health Insurance at a young age is always beneficial. It helps in various aspects from increasing the coverage to reducing the premium.
Having said that, it doesn’t mean that one can reap benefits only when they buy a policy at a young age. For example, many Health Insurance plans have a Co-payment option which may not be applicable to people if they purchase the policy at a young age. If people miss out on buying one when they were young, they can still avail its benefits. But the problem is that many people don’t think of Health Insurance as an essential investment.
One of the common misconceptions that people have is “Why do I need Health Insurance when I am healthy?” But they fail to realize that uncertainties may arrive at any time. Without Health Insurance, people are left vulnerable to dealing with their medical bills solely from their savings or assets. Instead of waiting for the perfect time, it is advisable to invest in a suitable Health Insurance policy as soon as possible.