The younger generations, especially those in their 20s, often miss the bus to buy a health insurance policy. Since they are younger, they may usually prioritise other financial needs and aspirations such as buying a car or buying the latest gadget or going for a vacation. While it’s not wrong to fulfil these aspirations, ignoring a health insurance plan can be a grave mistake.
Let’s look at 7 reasons why buying a health insurance policy in your 20s makes absolute sense.
1. Low Premiums
One of the key factors that determine the health insurance premium is the age of the applicant. Since younger people are less likely to fall ill statistically, insurance companies charge a lower premium to them. This can be a great opportunity for the younger generation to get covered by a comprehensive health insurance plan.
2. Rising Medical Cost
The medical inflation in the country is touching the roof. A few days, in and out hospitalisation in a good hospital can cost you lacs or even more. This can give you a financial setback. A health insurance plan ensures you are covered financially and can get the best treatment if you do fall ill without worrying about the cost.
3. No Waiting Period
Almost all health insurance policies do not cover a few diseases for the first few years. This is called the waiting period. However, when you buy a health insurance plan in your 20s, you have a better chance at surpassing the waiting period from day one. Thus, you are covered against a wider range of illnesses, unlike someone who buys a plan in their 40s or 50s.
4. No Health Check-up Required
A health check-up is a mandatory requirement for buying a health insurance plan with most insurance companies. However, when you’re buying a plan in your 20s, you can skip all the formalities and get your hands on a comprehensive health plan.
5. Increase in Diseases
If there’s one thing that COVID-19 has taught us is that no one is 100% protected from diseases. The second wave of COVID-19 in India targeted the younger generation. A health insurance plan can help you, and your family members sail through difficult times and help you get the best medical care. As per the directive from the IRDA, all health insurance companies must provide insurance against COVID.
6. Buy it for Your Parents
If you’re still not convinced, buy a health plan for your parents. Consider investing in a family health insurance policy that allows you to cover you, your parents, your spouse under one single plan. This will ensure you cover not only yourself but also your parents under a single plan.
7. Taxation Benefits
Insurance premiums are eligible for tax benefits under section 80D. This allows you to reduce your taxable income. When you’re just starting out your career, every rupee saved helps you build a more formidable financial future for yourself and your family.
An illness can strike anyone and at any time. When you’re young, your body is better poised to recover from the illness if proper medical attention is given. However, recovering from the financial setback may not be that easy with limited financial backup. A health insurance plan makes for a prudent financial and health decision that can help you build a more secure financial future.
