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Why is the Right Age So Important to Buy a Health Insurance Policy?

By Juhi Walia
14 October 2022, 4:33 PM

Each person must have a health insurance policy to deal with major medical expenditures. Have you heard people advising you to buy health insurance early? Let’s look at the right age to buy health insurance and why you must buy it at an early age.

Medical science has seen significant development. Thus, treatments and cures are available for most ailments. Still, the charges incurred for similar treatments are humongous and may affect severe financial stress if you don't have health insurance coverage.

Why Should You Buy Health Insurance at a Very Young Age?

It would be best to buy health insurance as soon as you turn 18. Take a look at why buying health insurance at a young age is excellent.

Financial Freedom

The essential purpose of health insurance is to pay your medical charges. Else, you would have to pay them from your fund. With a health policy, you save huge on medical expenditures. Therefore, the sooner you buy the policy, the more financial freedom you will enjoy in your life.

Lower Premiums

Your age is one of the most critical factors determining your health insurance premium. As young people are likely to be healthy, the premiums for them are low. On the negative side, aged people are more vulnerable to diseases and, therefore, are a greater liability to the insurance provider. As a result, the lower your age, the lower will be your premium amount.

Easier to Induce Over Waiting Period

Every health insurance policy's initial waiting period is 30 days. Young adults are less likely to lift a claim during this era as their probability of getting any serious medical condition is veritably low. Thus, they can easily pass the earliest waiting period. The same cannot be said for senior people, as they might face a medical emergency within days of buying the policy but cannot file a health insurance claim because of the waiting period, resulting in excessive out-of-pocket costs for them.

No Pre-Policy Medical Check-up

In most cases, if you apply for a health insurance policy at a young age, you won't need a medical check-up. This plan protects you from having your premiums increased by a disease/medical condition discovered by the health insurance company. For people over 45 years of age, this option is usually not available, and the amount of the premium is determined by their medical checkup report.

Earning Cumulative Perk

Every claim-free year earns you a perk in most health insurance plans. Using this bonus, you can increase your sum insured amount at no additional cost. During a policy year, a young person is more likely to be fit and not need to make a claim. This way, he can smoothly earn cumulative perks over the years. Such perks lead to an increased sum insured, increasing your cover against surging medical costs. On average, healthcare costs can rise around 7-15% a year. So, you can imagine the help you will get by grabbing these perks. 

But aged people may need to raise a claim to their age-related medical conditions, making it difficult for them to earn a cumulative perk.

When Do You Have to Buy a Health Insurance Policy?

The right time or age to buy a health insurance policy is your mid twenties and early thirties. At this age, you'll most likely be healthy and not have many responsibilities towards your family. You can check the possible scenarios when buying the policy at different ages.  

Case 1: Buying Health Insurance in Your 20s

You’ll likely pay your health insurance premium effortlessly as you won’t have any financial pressure at such an age. Your premiums will be affordable and less, which will allow you to conclude elegant coverage as per your insurance needs. You'll be capable of getting additional coverage similar to maternity health insurance which you need in the future. Also, you can get a lifetime renewal facility and easily earn an accretive perk.

Case 2: Buying Health Insurance in Your 30s

Here, you're most likely to conclude a family health insurance plan. You might be planning to settle down, marry, and start a family at this age. So, you would want coverage for your spouse & children. Further, you may want to buy other covers for diseases like diabetes, blood pressure, etc. For some, symptoms of these diseases can appear in their 30s. The premium would thus rise, maybe not astronomically. 

Case 3: Purchasing Health Insurance in Your 40s and 50s

Still, you would need to conclude for higher coverage, if you are supposed to buy a health insurance policy in your 40s and 50s. Your financial responsibilities will be the topmost at this age, and you may have developed specific diseases like cancer, diabetes, high blood pressure, etc. As an outcome, you may opt for broader coverage with critical illnesses and ensure improvement. Your premium will no doubt be high at this time. You may choose a family floater coverage to reduce your premium, but it'll still be high enough.

Case 4: Purchasing Health Insurance After Turning 60 Years Old

You'll have to pay a hefty premium if you buy a health insurance policy after turning 60. At this age, you are most likely to face serious medical conditions that may require prolonged treatment and hospitalization. Entry-level health insurance is not enough at this stage of life. Elderly health insurance may be required. The amount available can help cover AYUSH treatment, hospitalization, organ donation costs, etc. However, senior citizen health insurance plans may not have much sum insured in terms of the healthcare costs that may prevail at that time.

If you do not have health insurance, take out as much health insurance as possible during this time. To choose the best policy within your budget, compare and research all the different health insurance plans online at Paytm Insurance, a leading insurance marketplace. The sooner you buy, the better for the future.

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1. What are the various types of health insurance plans can I buy?

You can buy the critical illness insurance plan, individual health insurance plan, senior citizen health insurance plan, family floater health insurance plan, maternity health insurance plan, group health insurance plan, or the personal accident insurance plan.

2. If I buy a health insurance policy, will I be eligible for tax benefits?

Yes, you are eligible for tax benefits if you buy health insurance. Also, you will earn the eligibility to claim tax benefits under the Income Tax Act, 1961.

3. If I want to buy health insurance, what type of documents do I need?

If you want to buy health insurance, you need to submit documents like your voter ID, driving licence, Aadhar card, and pre-medical check-up reports.

4. I've just been diagnosed with a medical condition. Will I be allowed health insurance?

Based on your insurer, you may need to pay a high premium or face policy denial. Still, it will be considered a pre-existing disease, if you have previously been diagnosed with a medical condition. In this case, you have to wait for a waiting period until you are allowed coverage.

5. What is the step to buying a health insurance policy online?

Follow the steps below to buy a health insurance policy online.

  • Log in to Paytm Insurance.
  • Click on ‘health’.
  • Select your gender and the members you want to insure.
  • Click on ‘proceed’. 
  • Mention the age of the insured members and click on ‘get quotes’.
  • Different plans with coverage and premium details will pop up on your screen.
  • Click on the ‘buy now’ button placed against the plan you wish to buy.
  • Fill in the name and other details of the insured members.
  • Click on ‘submit’
  • Pay the premium using the Paytm app, debit card, credit card, net banking, etc.
  • Upon successful payment, you will get your health insurance policy issued.
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