When you are in your 20’s and 30’s you learn and explore new things in life. This has to be the most crucial time of your life as your entire future depends on the decisions you make during this period. People often tend to overlook the decision of buying an individual health insurance plan at a young age without realizing its significance. Lifestyle diseases, critical diseases, and accidents are a major threat today.
Here are five reasons why you should invest in health insurance at a young age:
- Premiums rates:
Our health condition deteriorates as we grow older and we need regular health treatment. The possibility of ill-health is relatively lower when you are young. Premiums are chargedbased on the age and health conditions of the insured person. Therefore, you must sign up for an insurance policy at an early phase of life.
- Tax benefits:
Buying health insurance in your early 20’s is very beneficial because you get to avail tax benefits from an early age. When you purchase a health plan at a young age, you can save a lot of money in the long run. A deduction of up to Rs.25,000can be claimed on your premium policy under Section 80D of the Income Tax Act, 1961. Money spent on taxes can be invested in covering future medical expenses once you buy a health insurance policy.
- Financial Planning:
A major role is played by an insurance plan in the overall financial planning apart from saving taxes. Your insurance company will pay for any medical exigency that arises in the future by keeping your savings intact.
- Wider coverage and options:
If you buy health insurance at an older age, you are not eligible to receive all benefits. Buying health insurance at a younger age will give you ample options to choose from. You will also be able to opt for plans that have wider options as well as a wider coverage. You must also buy health insurance plans to protect the needs of your loved ones. A personal accident insurance plan is also worth a look to increase your cover.
- Age limit, waiting period and pre-existing conditions:
Buying a health plan later in life involves several factors such as the upper age bar and waiting period. During this period, you cannot make any claim after buying the policy.
In short, buying health insurance in your early 20s is a wise decision. It is also very convenient. To enjoy maximum benefits, it is important for you to avail of a health insurance plan at an early age.
There are numerous health insurance plans in the Indian market. For making the right choice while paying the optimum premium, you need to avoid certain mistakes.
Below are a few mistakes you must avoid:
- Not availing the right sum insured
The amount you will receive through the health insurance plan at the time of claim is the sum insured. Choosing inadequate sum assured amount will leave you underinsured. The sum insured will be exhausted early and force you to spend money out of your pocket, in case of hospitalization. If you wish to avoid such a scenario, it is recommendedthat you avail the right amount of health cover by considering the needs of your entire family and exploring plans such as family health insurance.
- Not knowing how your Policy works
There are times when health insurance buyers are not aware of how the policy functions. You must understand the scope of coverage before you purchase the policy.In addition, one must go through the terms and conditions of the policy to understand the inclusions and exclusions thoroughly.
- Not knowing the duration
Insurance buyers are known to insure themselves for a shorter duration, most of the time owing to the lower premium offered. Such a short duration must be avoided because the chances of you being left uninsured are greater, owing to the early lapse of the policy.Also, if you opt for a short term policy, you will have to go through the hassle of renewing it multiple times.