WHAT IS THE RIGHT AND APPROPRIATE AGE TO PURCHASE A HEALTH INSURANCE POLICY

"Protection is peace of mind."

Buying a health insurance policy at a younger age

It is often heard that the people buy insurance policies at a young age. Especially today's millennial age group that highly believes in fitness and wellbeing. Health care is a major priority for today's generation. A recent survey of 1,400 young people in the age group of 25-35 years had 75% of the respondents saying that they had health insurance.

Buying a health insurance policy at a younger age is ideal as you will most likely be in your best health and will be free of any financial responsibilities.

So, if you can afford it, you should buy health insurance as soon as you can!

 

Reasons to buying health insurance policy at a young age

To understand why the youth today opt for health insurance policies at an earlier age, let's look at the reasons in detail;

Lower premium – Age is the most crucial factor while calculating a policy premium. Insurance providers consider younger people healthier and so, are in a lower liability category. On the other hand, older people are more vulnerable to sicknesses and thus, fall in a more significant liability category for the insurance provider. Hence, the lower your age, the lower will be the premium amount on your health insurance policy.

No medical check-up or history required – If you apply for a health insurance policy at a younger age, there is no need to undergo a medical check-up or medical history details to be shared before buying the policy. As the chances of getting a complex health condition for youngsters is lower, the insurance providers usually do not require any comprehensive medical details.

Waiting Period benefit – Every health insurance policy comes with an initial waiting period of 30 days. Since younger people are less likely to raise a claim during this period as their probability of having any serious medical condition is low, they can easily wait out the initial waiting period without any hassle. While for older people as they may face a medical emergency within days of buying the policy but may be unable to raise a claim during the waiting period.

Cumulative Bonus – Most health insurance plans provide a cumulative bonus for every claim-free year. A person younger by age is more likely to be not raise a claim during the policy year. Such a bonus can be used to enhance the sum insured amount for no additional cost. This way, the young can easily earn a cumulative bonus over the years. But it is not the same for older people as they may need to raise a claim owing to their age-related medical conditions, making it difficult for them to earn a cumulative bonus over a certain period of time.

Financial Freedom – The basic purpose of health insurance is to pay for your medical expenses. With a health policy, you save a lot of money on medical expenditures. Thus, the sooner you buy a policy, the more financial freedom you can enjoy at the earliest.

Group Health Insurance Policy Limitation – By coming under a group health insurance policy offered by your employer or company, you feel it is beneficial as they will pay for any of your medical expenses incurred. However, even though a significant portion of the premium burden is borne by the employer reducing your liability, the coverage extended is limited in most cases. You often have to bear the divided costs. Group policies also come with additional restrictions like room rent capping. And, if you decide to leave the stipulated company, the health insurance facility immediately ceases to exist. The best way is to go for a comprehensive health insurance policy. It negates all such limitations ensuring complete protection to you.

Enhance your mental wellbeing - According to data released by WHO published by the National Care of Medical Health (NCMH), approximately 6.5% of the total Indian population suffers from any kind of mental disorder. Suicide rates among individuals below at a younger age are highest compared to any other demographics of the country. At a young age, the stress to maintain a balance of personal, professional, and healthy life is a at a high. Generally, all major insurance providers recognize this need and offer adequate coverage with their policies. You can too claim compensation for all expenses incurred in obtaining psychiatric therapy and consuming prescribed medications maintaining your mental wellbeing.

Income Tax Benefits - Tax rebate can be claimed against the money spent towards payments of premium for a health insurance policy.

Special coverage – Most insurance providers offer special coverage for young aged people for medical expenses on pregnancy, childbirth, and fertility treatments like in-vitro fertilization (IVF), intrauterine insemination (IUI), gamete intrafallopian transfer (GIFT), or Intracytoplasmic sperm injection (ICSI). As these treatments are generally expensive, coverage can help financially.

 

 

The right or appropriate time to buy a health insurance policy

The right or appropriate age to buy a health insurance policy is usually considered in the mid-twenties and early thirties. Let's take a look at the effect of buying a health insurance policy at different ages;

Buying health insurance in your twenties - If you buy a health insurance policy in your mid-twenties, you will be able to manage the premium payments easily without any financial stress. The premiums will be affordable, which will allow you to go for the best coverage as per your health needs. You will be able to afford additional special coverage such as maternity. Additionally, you can get a lifetime renewal facility and earn a cumulative bonus as well.

Buying health insurance in your thirties - Generally, if you decide to buy a health insurance policy in your thirties, it is most likely you will opt for a family health insurance plan. At this age, you would want coverage for your spouse & children as well. Further, you can buy additional special covers for diseases, such as heart ailments, the symptoms of which start showing usually at this age.

Buying health insurance in age forties and fifties – While buying a health insurance policy in your forties and fifties, you need to opt for higher coverage plan. Your financial responsibilities will be higher with a change of age relates ailments like diabetes, high blood pressure, or even cancer. As a result, you may need broader coverage with critical illness and sum insured enhancement benefits. Your premium will be higher, but if you opt for a family floater coverage, your premium can reduce to some extent.

Buying health insurance after turning sixty - If you are buying a health insurance policy after 60 years of age, you will have to pay an enormous premium amount as you are most likely to face severe health issues at this age that may need long treatments or hospitalization. A basic or simple health policy will not be sufficient at this stage of life, and you may require a senior citizen health insurance policy.

 

As you can see, the right or appropriate time and age to buy a health insurance policy is as soon as possible. It is wisely said, 'The sooner you buy, the better it is for your wellbeing.'

 

"Disease, sickness, and old age touch every family. Tragedy doesn't ask who you voted for. Health care is basic human right."

 

FAQs – Frequently asked questions.

 

Let's look at some frequent queries about what is the right age to purchase a health insurance policy;

 

Q1. Is there some sort of waiting time or period on health insurance policies?

Yes, all health insurance policies come with a waiting period of 30 days from the activation of plans. In the case of pre-existing diseases, the waiting period increases up to two years.  

 

Q2. Is there a co-payment aspect in health insurance?

Yes, under the co-payment feature, a portion of the total medical bills generated has to be paid by the insured individual, while an insurance company covers the remaining amount.

 

Q3. Should I buy age-appropriate health insurance?

Yes, there are various types of health insurance plans available individual, family floater, senior citizen, critical illness, with additional special coverage of maternity or fertility treatments. Depending upon your age, requirement, financial status, and goals, you can choose any health insurance plan for your welfare.