5 Super Benefits Of Buying Health Insurance Early In Your 20s
One of the biggest lessons that covid has taught to all of us, is the importance of health insurance. But despite understanding how crucial it is, most of us still defer this decision till our 30s or 40s, instead of buying it in our 20s itself.
One of the biggest lessons that covid has taught us all is the importance of health insurance. But despite understanding how crucial it is, most of us still defer this decision till our 30s or 40s, instead of buying it in our 20s itself.
Wondering why it's important to buy health insurance in your 20s? Read on as we explain its super benefits.
5 Benefits Of Buying Health Insurance In Your 20s
Lower Premiums
The cost of the policy premium differs amongst insurance companies. One of the main benefits of purchasing health insurance in your 20s is a lower premium amount. The policyholder's age plays a significant influence in determining the premium.
In other words, the amount of the premium is determined by your current age. Lower premiums are available if you purchase insurance in your 20s. Due to the increased health risks associated with ageing, the premium also rises with an individual's age.
No Waiting Period
In terms of health insurance, a waiting period is the amount of time that you are not permitted to file a claim for specific illnesses, surgeries, pre-existing conditions or special treatments. This period typically lasts between two and four years, depending on the plan you have selected. Early health insurance purchase is advantageous because it allows you to use the waiting period before needing medical coverage.
On the contrary, if you buy a policy at 45 or 60 years old, you will have to wait out the waiting periods, and depending on the insured party's health, disease-specific exclusions might apply. Buying the policy early means that you can claim all benefits later because you will have completed the required waiting period by the time you need policy assistance.
Also Read: 5 Tips To Buy Health Insurance For Parents
Tax Benefits
As far as the tax benefits are concerned, the premium paid towards self, spouse, dependent children, and parents can be claimed as tax deduction under Section 80D of the Income Tax Act, for varying amounts.
The premium paid towards health insurance for self, spouse, and dependent children can be claimed as a tax deduction of up to ? 25,000 per year, and an additional ? 25,000 can be claimed for parents under 60 years of age, totalling the eligible claim of premium payment of up to ?50,000 in a year.
And in case your parents are aged above 60, i.e. they are senior citizens, the amount gets further hiked to ?50,000 for parents¡¯ premium, hence totalling ?75,000 eligible as a deduction claim per year. Moreover, if insured individuals and parents, all are aged 60 or above, then the claim amount is ?50,000 for self, spouse, and children, and another ?50,000 for parents, hence totalling ?1 lakh eligibility for tax deduction per year under Section 80D.
Comprehensive Coverage
Young people looking for health insurance policies can benefit from a more all-inclusive package. Early policy purchase guarantees that pre-existing conditions cannot arise because you will be covered from an early age. Any later-diagnosed illness will be automatically covered.
Also Read: Why Life Insurance Premiums Are Cheaper For Women
Lower Rate of Rejection
Obtaining medical insurance in India is difficult if you have a medical history. A person with cancer or heart disease would either not be eligible for health insurance at all or would have to pay a hefty co-pay when making a claim. Younger people in excellent health have fewer risks, which makes it less likely that they will be turned down for insurance. A co-payment is typically required for health plans if you enrol after the age of 60.
This poses an issue for policyholders during the claims filing process. Therefore, since co-pay is not included in the majority of medical coverage plans, it makes sense to obtain health insurance when one is young.
Also Read: How You Can Prevent Your Insurance Claim From Getting Rejected