Someone quoted very accurately, ‘the best time to buy health insurance is yesterday’. We have seen a lot of people, specially millennials coming with a common excuse such as ‘I have never been hospitalised’. However, when in times of a health emergency, you may have to face huge hospital bills and other related charges. These expenses can cause a hole in your pocket and add to the emotional trauma; hence you need to be financially prepared for it.
The main issue behind this ignorant behaviour towards health insurance is that people think that the insurance plan covers merely a percentage of their medical expenses, thus wasting the premiums paid for it. Although this isn’t the actual scenario. Even if you get hospitalised once in five years, the hospital bill can be more than the entire paid premiums. Instead of regretting later, it is better to plan for good health insurance in time and be relaxed about facing the hefty hospitalisation bills.
Which is the best time to buy health insurance?
We suggest to buy health insurance policy as soon as you start earning. The sooner you buy, the better it will be for you as the premiums will be reasonable. Hence purchasing a health insurance plan at a young age will be beneficial. It can be backed by the following reasons-
- Exhaust the waiting period – In most of the health insurance policies, the waiting period is between 30 to 90 days. During this duration, you can’t make any claims even if you suffer a medical emergency. If you buy a health insurance policy at a young age when you are healthy and fit, you can easily exhaust this waiting period. Individuals over 60 years of age have no waiting period being senior citizens.
- Comprehensive coverage – If you invest in health insurance at an early age, then you get enough time to research, compare, and make a wise decision as there is no emergency.
- Low premiums – Mostly, the premium amount charged by insurance companies depends on your age at the time of buying a policy. Opting for a health insurance policy at a younger age will help you avail a lower premium amount.
- Longer duration – Most of the health insurance providers come with a cap on upper age. Buying health insurance policy at a young age will free you from worrying about the age limit and let you enjoy health insurance benefits for a longer period.
- Tax benefits – Taking health insurance policy at a young age comes with tax benefits letting you claim the paid premiums as deduction from total income under Section80D of the Income Tax Act, 1961.
- Pre-existing conditions – Many insurance providers exclude pre-existing health ailments, thus buying health insurance at an early age can be beneficial.
- Bonus – If the policyholder does not make any claims in a particular year, the insurance company grants reward in the form of ‘no claim bonus’.
- Broader options – Choosing health insurance at a younger age gives you the freedom to plan better by analysing your requirements and comparing various options.
- Lesser rejection chances – Younger age means more productive years ahead and less health complications.
Health insurance plan helps you face the unexpected medical expenses that can cause a dent in your savings, and thus you need to plan health insurance at an early age.