With the rising medical costs and the spurt of lifestyle diseases amongst Indians, health insurance in India has become a necessity for every person. Now more than ever is the time to make provisions and ensure you have everything you need to take care of your health for the future. Health is wealth, they say. People can face health risks at any stage of their lives, whether young or old. A medical emergency can transpire anytime and impact an individual’s emotional and financial state. Financial advisors, therefore, suggest that it is wise to buy health insurance early in life.
Benefits of Buying Health Insurance Early in Life
Although it may seem cheaper and safe to delay buying coverage until you need it, there are compelling reasons not to wait. Let’s discuss:
Hassle-free Waiting Period
Health insurance in India has a waiting period ranging from 30 to 90 days, during which no claims can be made even if you have a medical emergency. Buying a good health insurance policy at a young age is, therefore, a significant advantage in this context, as the waiting period gets exhausted without any concerns. There is a waiting period for many conditions, such as cataracts, urinary tract stones, knee replacements, arthritis, etc. Most insurance companies state at least 10 to 15 ailments with a waiting period. Individuals above 60 years have an extended waiting period in some cases.
In most instances, the premium amount charged by the insurer depends on your current age. So, if you opt for a policy at a young age, you can avail yourself of a lower premium. However, as you age, the premiums of a health insurance plan also increase as you are more at risk of falling ill. So, if you want to get your health insured at a lower cost, buy health insurance as early as possible.
Earn Cumulative Bonus
Good health insurance plans provide a cumulative bonus for every claim-free year. This bonus can enhance your sum insured amount for no additional cost. A younger person is likelier to be fit and may not need to raise a claim during the policy year. This way, they can easily earn a cumulative bonus over the years. But older people may need to raise claims owing to their age-related medical conditions, making it challenging to achieve a cumulative bonus.
Income Tax Exemptions
According to Section 80D of the Income Tax Act, 1961, you can avail of income tax deductions of up to Rs. 25,000 per year if you pay premiums for a health insurance policy. Moreover, if you buy the insurance at 18 years of age, you can save this amount in taxes for every year of healthcare coverage. While the same benefit is available when opting for the plan later, buying health insurance early drives better net tax savings throughout your career.
The primary purpose of health insurance is to pay your medical expenses. With a health insurance policy, you save considerable money on medical expenditures, especially those arising from a sedentary lifestyle. Otherwise, you would have to pay for such expenses from your pocket. Thus, the sooner you buy health insurance, the more financial freedom you can enjoy.
Choose the Right Health Insurance Plan
All said and done; however, the need for health insurance is far more significant in the long run than just tax savings and the health coverage that an insurance company provides. So, if you are planning to get health coverage, here are some suggestions that can help you pick a good health insurance plan:
When choosing a health insurance policy, look for a plan covering various ailments, pre and post-hospitalisation expenses, transportation, day treatment, special illnesses that you may be prone to because of family medical history, etc. If you plan on including your family in your policy, ensure that it regards all the requirements of your family members.
Compare Health Insurance Costs
The next step is to compare the costs or premiums of different health insurance plans. Since there are so many health insurance plans in the market, each with its own cost, you can get a good deal based on ample research.
Tally Inclusions & Exclusions
The coverage of the health insurance policy (inclusions), along with the conditions against which a claim cannot be raised (exclusions), define the scope of the policy. Therefore, you must have total clarity about both before you buy health insurance. Being clueless about the coverages can lead to a rise in out-of-pocket expenses. And not being aware of the exclusions can lead to claim rejection.
Study the Claim Settlement Process
It is crucial for you to consider this factor while selecting the policy. The more straightforward the claim settlement process, the easier it will be for you to settle your health insurance claims. Always choose an insurance company with a high claim settlement ratio.
At Niva Bupa, we offer the best health insurance plans to protect you from the financial burden of healthcare costs – and that you make the most of it! With our comprehensive insurance plans, we take care of the finer details so you can live in peace.
SOCIALLYKEEDA.COM MAIN PAGE –CLICK HERE