Many people consider buying a health insurance policy as an extra investment which can impact their savings and budget. Moreover, some people consider employer health insurance cover to be sufficient. But, you should opt for the early purchase of your medical insurance policy rather than waiting longer.
The 10 major reasons which emphasise on the importance of purchasing health insurance policy early in India can be listed below.
1. Low Premium, Higher Effective Coverage
The premium of one health insurance policy varies from the premium of another. The major factor which determines the premium for the policies is your age. With the increase in your age, your risks related to health also increase. Most of the insurance providers in India tend to impose high premiums with the increase in your age. So, even if you have opted for a health insurance policy early, your premiums would still rise with age. However, there is a slight difference.
So, if you have opted for a health insurance plan early in life, your effective coverage is high at a comparatively lower cost, since your risk coverage starts before any ailments.
Let us take an example to illustrate this. The health insurance policy is taken for a sum assured of INR 3 lakh.
| Age Group | Insurance Provider | Premium |
| Male policyholder -30 years | HDFC | INR 5,159 |
| Male policyholder – 40 years | HDFC | INR 5,609 |
| Male policyholder – 50 years | HDFC | INR 10,899 |
| Male policyholder – 60 years | HDFC | INR 16,366 |
The above-mentioned table clearly shows that premium increases with the increase in age. The increase is too steep after 40 years of age. The best method to obtain the cheapest health insurance policy is to purchase the policy at a young age so that there is no pre-existing ailment which results in a higher premium as a loading.
2. No Waiting Period
Most of the health insurance policies in India have a waiting period of 2 years to 4 years for certain pre-existing conditions. These pre-existing conditions can be related to maternity benefits, knee replacement surgeries, cataract, etc. By purchasing your health insurance policy early, you can use the waiting period clause when you would not be in the need of coverage of a health insurance plan. However, if you are purchasing your medical insurance at an age of 45 years or more a lot of time would be put up for the waiting period.
3. Lower Rejection Rates
Mostly, insurance providers would not be in favour of providing a health insurance policy if you had a medical history. At a young age, your probabilities of falling sick or having some medical conditions would be low. With the increase in age, your immunity would deteriorate thus, increasing the chances of falling ill. So, insurance providers consider this as a threat and would reject your application if you are aged. However, the probabilities for rejection are less if the policy is being purchased at a young age.
4. Better Coverage
By buying a health insurance policy at a young age you are ensuring that you have complete coverage. There are a lot of health insurance policies which are offering a wide range of coverage such as maternity benefits, OPD expenses, daycare procedures, etc. So, your cost of coverage would only be rising when your age increases as there would be an increase in medical complications.
5. Stress-free About Duration
In general, most of the health insurance plans have an upper age limit after which policies are not granted to them. So, if you have purchased your maternity health insurance benefits at a younger age, you would not have to worry about the waiting period. You can enjoy the benefits of the health plan which may have a longer waiting period for pre-existing illnesses.
6. Pre-existing Conditions
If you are purchasing your health insurance policy at an increased age such as after 40, then this will only lead to an increase in your financial pressure. The benefits obtained would be reduced and the premium would be high too. Many insurance providers do not provide coverage for the various pre-existing conditions thus, denying the entire objective of purchasing health insurance.
7. Higher Bonus
Most of the insurance providers would offer the benefit of NCB (No Claim Bonus) in case of the absence of any claims in the policy year. In case, you are purchasing your health insurance policy at a young age, you would be able to avail of the benefit of a Cumulative bonus. By this, your accumulated bonus can help in increasing your Sum Insured which can be of great help when you are older and would start facing health issues.
8. Wider Options
Mostly, health insurance companies accept applications from younger people. So, you would be able to have a variety of options from which you can choose. Moreover, the probabilities of obtaining a health insurance plan with lifetime renewability are higher at a younger age.
9. Better Financial Planning
By purchasing a health insurance policy at a young age, you would get an opportunity of not only having enhanced cover but also of planning your finances in a much-organised way. When you would have a mediclaim policy with adequate cover, you would remain stress-free about medical emergencies. Thus, you would be able to concentrate on planning for other long-term financial investments.
10. Tax Benefits
The health insurance premium paid by you is eligible for tax deduction under Section 80D of the Income Tax Act, 1961. If you are buying your health insurance policy at an early age, you would be able to enjoy the tax benefits of up to INR 1 lakh for a prolonged time.
Conclusion
So, at a young age, you would be having a long list of tasks to be accomplished which can include buying a car, house, etc. If you add up buying a health insurance policy into this list, it would be beneficial for you. You should consider making this financial investment at a young age to avail of the benefits for a prolonged period.
