Mia
Many of us tend to believe that health insurance is not a requirement in our 20s. While you are quite healthy, you can easily afford any minor ailment that may occur once a year. But that’s where you are wrong! Although health insurance is meant to secure the medical expenses that you may incur today, it also safeguards your tomorrow. Age-related ailments start showing in your 30s, however, by that time, the health insurance premium is pretty high. This is why opting for insurance in your 20s is really helpful in the long term. So, let’s deep dive into some key reasons to help you understand why you should purchase health insurance in your 20s.
6 Reasons to Opt for Health Insurance in Your 20s
- Cost-Effective Premiums
Did you know that insurers perceive you as low risk in your 20s? As the chances of an individual suffering from ailments in their 20s are low, insurance providers tend to offer affordable premium quotes. However, this may not be the case for someone in their 30s or 40s when buying individual health insurance is quite expensive due to higher premiums. This is why opting for health insurance early in life can help you enjoy cost-effective premium rates!
- Increased Perks
Due to lower medical risks, buying health insurance in your 20s comes with its own set of benefits. However, these perks might not be available to people opting for insurance policies in their early or late 30s and 40s. You get an edge over other policyholders with an opportunity to personalise your health plan. To ensure you can get access to more benefits, we recommend you compare various policies online and choose a suitable plan with lucrative features and customisations!
- Complete the Waiting Period
Health insurance waiting period must be a term you might have heard numerous times. But what is it and how does it benefit you? The waiting period is a duration when no claims specified by the insurer shall be accepted. It could be applicable to certain ailments and treatments.
As the duration can range between 2-4 years, purchasing health plans early enables you to finish the waiting period sooner! By the time you require coverage for the specified illness, the waiting period shall be over and you won’t have to wait to avail insurance coverage.
- Cumulative Bonus
But won’t your insurance premium go in vain if you do not make any claims during the policy term? If you don’t raise any insurance claims, you can certainly enjoy the cumulative bonus in health insurance! Such a reward allows you to avail a cost-effective insurance price or an increase in the sum insured without any premium changes! In case of a claim-free year, you can have peace of mind as the cumulative bonus has got your back.
- Lower Rejections
Insurance companies may reject your insurance application if you suffer from severe health problems or other such reasons. This is common for individuals opting for health plans later in life and face rejection due to pre-existing conditions. However, this may not be the case if you buy insurance in your 20s and the chances of experiencing rejections shall be lower!
- Tax Benefits
You can start saving up on taxes with individual health insurance while enjoying insurance coverage! Under Section 80D of the Income Tax Act, 1961, you can claim the premiums paid towards the policy. You can claim an amount of ₹25,000 per financial year for your health plan whereas you can claim an additional ₹25,000 for your parent’s health policy. But it is not advised to purchase health insurance just for tax savings.
Conclusion
With this, we hope we have cleared a common myth that individuals in their 20s do not require health insurance. With endless benefits at affordable rates, opting for insurance can never go in vain. However, purchasing it for the sake of tax benefits is never recommended. So, make sure you take the time out to compare and research various policies available in the market and pick a suitable one. Last but not the least, always read the fine print to know the terms and conditions of your health plan!
