If you’re in your 20s, you must have started planning your finances. It’s a wonderful time to experiment and try new things, however It’s a crucial time in your life, and this time your choices and actions will unquestionably impact how you live in the years to come.
And although many of your friends might’ve begun their investment journey, here’s what no one talks about- protecting your downside, a.k.a’ insurance.’
That makes sense, right?
“Why would you need insurance when you are young and healthy?”
Here’s something you might need to learn- if you develop a critical illness early on, insurers might not extend you a policy altogether. So it may be prudent to buy health insurance in your 20s.
Aside from that, the availability of online platforms has made buying a health insurance policy simpler. Health insurance offers many advantages, including tax advantages under section 80D, protection against medical costs, and protection against catastrophic illnesses, among others.
In India, demand for health insurance has considerably increased, particularly during the COVID-19 pandemic outbreak.
However, it is frequently observed that many people need to understand the significance of obtaining health insurance coverage; many only do so in their 30s and 40s and then regret not getting a policy sooner.
Always remember that health insurance is not a luxury; consider it your need, and you will never regret this decision.
Still, trying to convince?
We have written this in-depth article to help you understand why you should purchase health insurance for yourself in your 20s immediately after becoming financially independent.
Here are some benefits of taking health insurance in your 20s:
1) Low Premiums for higher coverage
Since the insurer is at a lower risk of getting claims, you can get a large cover at low premiums.
2) Variety of options
You will have more options to pick from when you apply for health insurance in your 20s. Insurance firms might let you pool the best insurance policies to guarantee you make the most excellent decision. Additionally, you can renew the plan in light of the changes occurring throughout different seasons of your life. Later, you could choose a family plan with coverage for your spouse and kids.
If you make a run for a policy when you contract a major illness, insurers might be unwilling to cover you, or they might put a permanent exclusion. Buying a policy while still young & disease-free allows you to avail yourself of a comprehensive cover without any hassle.
When you don’t make a health insurance claim during the prior year, the majority of insurance providers will give you a cumulative bonus, which is often in the range of 5 to 10 percent of the insured amount. When you are relatively healthy and in your 20s, this is more likely to occur than when you are older.
5) Waiting periods
For the first few years, almost all health insurance plans do not cover a few conditions. The waiting period is what we refer to as. However, your chances of overcoming the waiting period from day one are better if you purchase a health insurance plan in your 20s. As a result, compared to someone who purchases a plan in their 40s or 50s, you are protected against a wider spectrum of diseases.
6) Less chances of rejection
With a medical history, obtaining medical insurance is complicated. When filing a claim, a person with cancer or heart disease would either have to pay a hefty co-pay or not be covered by health insurance. Younger people in good health pose fewer risks; therefore, they are less likely to have their insurance applications declined.
7) Protecting your downside
Since you’re still building up your finances, an insurance plan will ensure a hospitalisation doesn’t eat into your savings.
8) Tax benefits
Aside from protecting medical expenses, health insurance policies also offer significant tax advantages because premium payments are covered by Section 80D of the Income Tax Act of 1961.
Once you have decided to buy a Health Insurance, read about the Best Health Insurance Companies in India to go a step closer to buying the Best Health Insurance Plan for yourself.
So now promise yourself that you will never let a single penny out of your pocket for a medical emergency, and buy a health plan appropriate for you.
1) In my twenties, what kinds of insurance do I need?
Health insurance, life insurance, auto insurance, and other essential insurance plans are things you should have when you’re in your 20s.
2) What age is ideal to buy health insurance?
There is no ideal age but you should make buying a Health Insurance a priority as it becomes increasingly difficult to get a policy when you develop a health ailment or get old.
3) How will my health insurance cover any unexpected medical costs?
If you choose the cashless facility, your health insurance will either pay your hospital bills directly or reimburse you for any payments you make toward medical costs related to an illness or injury.
4) Can I get a refund if I cancel my health insurance policy?
A free-look period of 15 to 30 days is offered by health insurance firms, during which you can cancel your policy. The company will return the entire premium amount after deducting the stamp duty and proportional risk fees if you cancel the policy within this time frame.
5) Is My Health Insurance Coverage Extendable Outside of India?
A health insurance policy typically offers coverage throughout PAN India. Few companies, although, also offer coverage outside of India.
6) How many claims are permitted at most per year?
A policyholder may submit as many claims as they like each year, but each claim must not exceed the policy’s maximum or sum insured.
7) What if I already have health insurance but want to raise my insured amount?
When your insurance policy is renewed, you have the option to increase your coverage if you currently have one.
8) What should I consider before purchasing a health insurance policy?
You need to consider your medical requirements, the type of plan you want to invest in, features, sum insured options, network hospital list, exclusions, premium, and customer evaluations before purchasing a health insurance policy.