When you are young, life seems carefree and fun; hardly anyone wants to think about disease and misfortune during their 20s. While youth is the period of excitement and new beginnings, it is also the best time to give some serious thought to one’s health and finances for the future. We never know what will happen, and so one must prepare for the worst. A well-designed health insurance policy can help you plan for your future by taking care of your medical contingencies when they arise. This also ensures that your other plans stay on track.
However, many individuals in their 20s do not consider taking a health insurance policy as they feel that they are young and healthy. The truth is that securing yourself at a younger age can bring in many benefits, health-wise as well as financially. Let’s look at some of these benefits in this article.
- Premiums are lower
Health insurance premiums are generally very low when the policyholder is in their 20s. This is because the chances of the policyholder falling sick or getting hospitalized at a young age are quite low and thus, the chances of them filing for claims are also low. Insurers base the premiums on the risk they undertake when they issue a policy. Since people in their 20s are at lower risk, the premium is low too. This makes your 20s the ideal age period during which to purchase a health insurance policy.
- Waiting period gets covered easily
As you may know, insurance companies usually have a waiting period of a few years before they begin covering your pre-existing diseases. Often, these diseases are the common ones – diabetes, hypertension, bone health-related ailments, and so on. When you purchase a health insurance plan in your 20s, you can pass this waiting period easily as your chances of developing these pre-existing diseases are quite low at the time. As you age and the risk of such illnesses increases for you, the waiting period will be done on your health insurance policy and you can get the coverage you need.
- Tax benefits are available
Getting your finances in order is important when you are in your 20s. Did you know that apart from taking care of your medical expenses, your health insurance policy can provide you with tax benefits as well? Yes, according to the prevailing income tax laws, individuals under 60 years of age can claim tax deductions up to Rs 25,000. This particular feature makes a health insurance policy an appealing addition to your financial portfolio.
- Lower amount of co-pay
Co-pay refers to the out-of-pocket expenses the policyholder is expected to pay when they raise a claim on their health insurance for senior citizens and those more vulnerable to illnesses, the co-pay amount is often higher as they have more chances of raising claims. When you buy health insurance in 20s, the co-pay is usually lower as the chances of you raising claims are lower.
As you may have seen, the benefits of purchasing a health insurance policy in your 20s are many. Besides these, you should also consider that the cost of living may increase as time passes. You will also have more financial responsibilities. So, the sooner you begin looking into your needs for coverage, the more it will pay off for you in the future. Do bear in mind that the features of different health insurance policies may differ between insurers. Do your research well and select the health insurance plan best suited for your need and budget.