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Health Insurance: Best Investment Option for Young People

By Juhi Walia
26 September 2022, 11:36 AM

Health insurance is one of the best investments you can make for your future. It can provide coverage in case of an accident, illness, or death and protect your loved ones if you become incapacitated.

It is tempting for young adults to forgo health insurance without the official mandate, betting they will never get sick or injured. For young adults, access to health care depends on many factors, including their socioeconomic status and location.

Thankfully, the present scenario now requires health insurance plans to extend coverage to young adults until age 25. But afterward, they will get evicted from a health insurance plan having other members in the same. So, they will need to have a good health insurance plan as a replacement for the one where their parents may have been.

Here are some health insurance benefits highlighting it to be a good investment for young people:

Health Insurance Benefits for Young People

There's No Delay

Health insurance is one of the best investments a young person can make. It can help protect you and your loved ones in an emergency and is a tax-deductible expense.

You might consider purchasing health insurance online since the likelihood of having pre-existing conditions is lower among young adults.

Read more - Benefits of Buying Health Insurance Before You Turn 30

Different Health Insurances

There are many different types of health insurance, so choosing the right policy for you and your family is essential.  

No.Health Insurance TypesPurpose
iFamily Floater Health Insurance PlanFamily members
iiIndividual Health Insurance PlanSingle/individuals
iiiSenior Citizen Health Insurance PlanAbove 65 years old individuals
ivCritical Illness Insurance Plan    Covers expensive treatments
vGroup Health Insurance PlanCompany’s employees and so on.
viTop-up Health Insurance PlanMedical coverage up to a certain amount, as an add-on
viiPersonal Accident CoverPartial/total disability and death due to an accident
viiiMaternity Health Insurance PlanPrenatal stage, delivery and post-natal stage expenses


Mediclaim Insurance Plan           

In-patient expenses
xDisease-specific (Corona Kavach, etc.)  Pandemic-specific health conditions

It's More Than Mere Hospitalisations!

Most health insurance companies now give state-of-the-art health insurance plans covering doctor's visit fees, among other medical expenses.

Furthermore, most health insurance plans cover newborn infants at no extra cost to the parent. Having a kid is expensive, but several plans can help pay for those ever-increasing costs.

Listed below are some additional benefits of health insurance beyond hospital treatment:

1. Health insurance can help cover expensive medical treatments and surgeries. If something goes wrong during or after surgery, your health insurance will help cover the cost.

2. Health insurance can also help pay for preventive care. This includes visits to your doctor, tests and treatments that may prevent future illnesses or injuries.

3. It can provide financial assistance if you go through difficult times due to a health issue. This could include paying for your rent or groceries, helping with bills or covering your child's tuition fees while in school because of a family illness.

Offers Incentives

Insurance companies give "no claim bonuses" to policyholders who haven't made any claims during the policy year. As young people's chances of falling sick are less, buying a health insurance policy at a young age can help them accumulate a much higher sum insured.

Many young people can stay on their family health insurance plan until they are 23-25. Then, they will have to find and pay for their health insurance. As the policyholder ages, the added benefit of the increased coverage from these incentives will become more evident. It is thus imperative to keep in mind that different insurance companies offer different percentages of the increased sum that is insured.

Varied Yet Preferable Choices

Health insurance benefits for young adults are often used more frequently than significant medical benefits, with many plans offering routine annual physicals, immunisations, and even vision, hearing, and depression screenings.

Several types of health insurance are available, each with its advantages and disadvantages. Some preferable options include universal health care coverage, private health insurance, and medicare.

  • Universal health care coverage is the best option for young people because it provides comprehensive coverage for all medically necessary treatments. This type of coverage is usually affordable and provides peace of mind in case of an emergency.
  • Private health insurance is also a good option for young people because it offers more varied coverage than universal health care coverage. This insurance covers sports injuries, dental care, and vision treatment.
  • Medicare is a good option for young people because it provides access to free healthcare. This coverage is usually the cheapest option available and has low premiums.

Fewer Rejections for Youth

Health insurance is a significant investment but especially important for young people. There are fewer rejections when people are relatively young so health insurance can save you a lot of money in the future.

Young people can be more healthy than older people, so they're less likely to develop serious health problems. However, no one is immune to health problems. Even the healthiest person can get sick at any time.

You won't have to worry about paying expensive medical bills without health insurance. Health insurance also offers peace of mind in a severe illness or injury.

Policy Timeline

The length of a health insurance policy is essential to consider when choosing it. This is because a short-term policy will not cover you if you are seriously injured or if you experience an illness that requires expensive treatment.

If you are young, health insurance is an especially important investment. You may not need as much coverage as an older person, but having health insurance will help protect you in case of an accident or illness.

Extra factors

There are several reasons why young people might want to buy health insurance, such as:

1. Health insurance can be an excellent long-term investment for young adults. Studies have shown that people with health insurance are most likely to avoid costly medical bills than those without coverage.

2. Many health insurance plans offer substantial discounts for young adults. Policies can offer discounts of around 20-30% to someone in their 20s compared to people in their 40s.

3. Health insurance is a way to protect yourself and your family in case of an unexpected medical expense. If something terrible happens and you don't have health insurance, you could pay a lot more than you might think.

4. Buying health insurance can also save you money in the long run by reducing your chances of becoming uninsured and needing to pay high rates for expensive health care. Plus, if you ever experience a significant illness or injury, having health insurance can help cover some of the costs associated with that event.

Bottom Line

Buying online health insurance is a great way to save money on premiums. Some providers offer discounts to people who purchase coverage through the insurer's website.

In addition, online plans often have fewer restrictions on coverage and no waiting period for enrollment. 

Read more -


1. Why should young people put money into health insurance?

Presently, health insurance plans can extend coverage to children and young adults until they are 23-25 years old. Plus, there are good plans for people aged 25 and above.

3. When is the ideal time to get health insurance?

When young adults are under the age of 23-25 and are still covered by their parent's health insurance plan, it may be advantageous to stay on the policy. However, after completing the maximum age limit under the parent's plan, they will need to cover themselves with another plan. So, don't procrastinate. Buy the policy fast.

3. What should young adults consider while buying medical coverage online?

Before buying health insurance online, it is important to consider the plan's coverage, deductibles and cost-sharing. In addition to monthly premiums, health plans also come with out-of-pocket costs. Out-of-pocket costs should be listed in the summary of benefits. Choose the policy that comes with maximum coverage, affordable premiums, and least to no out-of-pocket costs.

4. What is the meaning of adolescent health for health insurance?

Physiological, psychological, behavioural, and cognitive aspects of adolescents and youth health undergo dynamic changes and development. The rapid progress in these several fields has the potential to produce exponential expansion throughout this time.

Regarding the same, the health insurance plans purchased by teenagers or young people take care of all these different issues.

5. Where can I compare the best health insurance plans for young adults?

You can compare the best plans online. Paytm Insurance, a renowned insurance marketplace, helps you compare and contrast the best plans. Doing so will help you choose the right policy with optimised coverage and affordable premiums.

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