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10 Reasons Why Buying Health Insurance in Your 20s is a Good Idea

By Juhi Walia
10 October 2022, 11:24 AM

Due to the increasing health risks, changing lifestyles and rising costs of medical care, it is essential for someone in their early 20s to enroll in a health insurance plan. In India, demand for health insurance has considerably surged since the global Coronavirus pandemic. A spike of 28.5% was observed in India's retail health insurance market in FY 2020–21, while the growth of 25.9% was seen in FY 2021–22.

There are still some unaware of the advantages and necessities of having a health insurance plan. They regret not getting a complete health cover earlier in life and only grasp the value of having one in their 30s and 40s.

10 Reasons to Buy Health Insurance Early

1. Lower Premiums

The price of the policy premium varies depending on the insurance company. The affordable premium is one of the main benefits of buying a health insurance policy in your early 20s. The calculation of the premium is significantly influenced by the policyholder's age. This is because as the individual’s age rises, so do the risks connected with his or her health, and as a result, so does the premium.

Health Insurance PremiumAt the Age of 25You might have to pay a premium of around INR 5,000-10,000 per annum for coverage of INR 5,00, 000.
At the Age of 35You might have to pay a premium of around INR 6,000-12,000 per annum for coverage of INR 5,00, 000.
At the Age of 45You might have to pay a premium of around INR 7,000-16,000 for coverage of INR 5,00, 000.

Note - These are sheer estimates based on no pre-existing health conditions.

2. No-claim Bonus

For not making any claims, almost all insurance providers provide their policyholders a no-claim bonus on the insured amount. One health insurance company may have a different NCB percentage than another. For instance, Oriental Insurance will have a different NCB than what you get on HDFC ERGO health insurance renewal.

Depending on the amount of years you have gone without making a health insurance claim, you may receive an annual bonus or reduction. In your older years, when you may be more susceptible to illness and may need to file a claim, you can use this NCB. When you renew your insurance, you can also get your NCB transferred. However, given the illnesses you may have in your old age, you may not get NCB benefits.

3. Tax Advantages

In India, you are able to deduct the cost of your health insurance premium from your wages. According to Section 80D of the Income Tax Act of 1961, you are eligible to get tax benefits for yourself, your spouse and your dependents. When you buy health insurance in your 20s, you can start receiving tax benefits and accumulate that over a longer period of time.

4. Comprehensive Cover

Early in life, when you are still physically and medically healthy and there is little chance that you will develop any pre-existing medical condition, you may purchase a health insurance plan. Any disease that is subsequently identified will be automatically covered.

5. See Off the Waiting Period

There are a few waiting periods in every health insurance plan that you must get through. In the context of health insurance, the waiting period is the time frame during which the insured is prohibited from submitting claims for certain diseases, procedures, or pre-existing conditions. Depending on the plan you select, this period could extend anywhere between two and four years.

Read more - Waiting Period Clause in Health Insurance

Buying a Health Insurance in Early 20sBuying a Health Insurance after 40s
The waiting period of your health insurance plan will be minimum on assumptions of you being healthy.The scope for getting affected by diseases is more, hence, the waiting period of your health insurance plan could be longer. 

Therefore, investing in health insurance while you're young will save your money because you'll be physically healthy when you're in your 20s.

6. Lower Rejection Rates

In India, getting health insurance coverage with a medical history is difficult. When filing a claim, a person with a health condition may be required to pay a high co-pay or may not be eligible for coverage at all. You experience few to nearly no medical problems or health troubles when you're in your 20s. Later in life, though, you can develop age-related illnesses that increase your risk of being turned down.

For instance, if you sign up after age 60, the majority of health plans require a co-payment. When policyholders file claims, this is a concern and can lead to rejection of your insurance.

7. Accidental Hospitalisation

Almost all individuals are prone to accidents. Once you get your driving license at the age of 18, your 20s can become more secure if you have in place accidental hospitalisation insurance coverage. This proves to be a source of financial and mental security.

8. Insufficient Employer Cover

The most common detail that individuals miss out on while purchasing health insurance is that they solely rely on the medical insurance that their employers hand to them. At first look, employer-provided health insurance could seem enticing, but it does not offer a comprehensive long-term solution. Such plans may not offer enough medical coverage. You might experience problems in such circumstances during an emergency. While in your 20s, explore different options and experiment around with the pricing. With the flexibility you have, employer cover issues can be solved early in life.

9. Increase in Lifestyle-Related Illnesses

An increase in lifestyle diseases like diabetes, hypertension, lung ailments, and obesity has been brought on by a growing dependence on technology, a sedentary lifestyle, and unsafe pollution levels. These lifestyle-related illnesses are also more likely to affect people in their 20s. This is one of the key arguments in favour of getting health insurance when you're young.

Read more - 10 Death-Dealing Diseases in India You Must Be Aware About

10. No Need of Pre Medical Health Screenings

A health examination is required before purchasing a health insurance policy for those who have reached a specific age (about 45 years old) due to elevated health risks. You will be assessed a greater premium if your health examination results are not encouraging. You can avoid pre-medical exams, pay lower rates, and have fewer coverage restrictions if you apply for insurance in your early 20s.

Read more -


1. Why is health important in life?

For one to fully experience life, good health is essential. The body stays healthy and the mind is sharp and alert when a person maintains a healthy lifestyle. A healthy lifestyle would increase longevity and help the body and mind to repair. The key to pleasure for humans is having excellent health.

2. What motivates people to purchase health insurance?

A health insurance plan can provide you with substantial financial protection to cover the costs of receiving treatment both domestically and overseas. Additionally, it gives the simplicity of fast payments for increased financial flexibility and covers hospitalisation costs, diagnosis prices, and ambulance and medication expenses.

3. What age is the best for health insurance?

The ideal time to purchase health insurance is between the ages of 20 and 30. You'll probably be in good health at this age, and most children in this age group do not have any financial obligations to your family.

4. What Impact does aging have on health?

Hearing loss, cataracts and refractive errors, back and neck pain and osteoarthritis, chronic obstructive pulmonary disease, diabetes, depression, and dementia are common ailments among elderly people. People are more prone to have multiple ailments at once as they get older.

5. What are a healthcare system's three objectives?

The triple aims are to increase the standard of care given, enhance patient outcomes, and lower the cost of care.

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