Being in your early 20s or 30s is an amazing experience as you will be able to learn and explore new things in life. In fact, it’s an important phase of your life as your entire future depends on the decisions you make. A significant but often overlooked decision is buying a health insurance plan. As lifestyle diseases, critical diseases, and accidents are a major threat today and thus, it can put young adults at risk as much as the old people. Thus, rising medical costs is no more the concern for the aged alone. Besides, here’s a list of reasons that show why everyone should invest in a health insurance plan at an early age –
- Lower premiums: As we grow older, our health condition deteriorates and we need regular health treatment. Although, when you are young and healthy, the possibility of ill-health is lower. The insurer imposes premiums based on the age and health conditions of the insured person. Thus, the sooner you will sign up for an insurance policy, the lower will be the premium you pay on it.
- Tax benefits: When you buy health insurance in your early 20s, you get to avail tax benefits from an early age. This will help you to save a lot of money over a longer period of time. Also, you can claim deduction on your premium policy under Section 80D of the Income Tax Act, 1961. Thus, the money that you spend as taxes can be invested to cover future medical expenses once you own a health insurance policy.
- Financial planning: Apart from saving taxes, an insurance plan plays a major role in the overall financial planning too. If any medical exigency arises in the future, your insurance company will pay for it while your savings will remain intact.
- Wider coverage and options: Buying a health insurance plan at an older age would result in reduced benefits and thus, narrow your options when it comes to buying multiple health plans. At a younger age, you will have ample of options to choose from. Here, you will be able to opt for a plan that has wider options and wider coverage.
- Age limit, waiting period, and pre-existing conditions: When you buy a health plan later in your life, there are several factors involved such as upper age bar and waiting period during which you can’t make any claim for during the waiting period after buying the policy. In addition to this, pre-existing conditions also affect your plan and turn into reduced benefits.
On the whole, buying health insurance in your early 20s is not just wise but also very convenient. Hence, it’s important that you avail a health insurance plan at an early age so as to enjoy the maximum benefits.