Reasons You Should Get a Health Insurance in Your 20s

Reasons to Get a Health Insurance in Your 20s

There is no denying that health has become a major concern in India. Given the rising pollution levels, hectic schedules, and fast-paced lifestyle, a number of illnesses and conditions are affecting the young population of the country. To treat yourself, you may have to make out-of-pocket expenses towards doctor’s fees, diagnostic tests, and cost of medicines, among others. A recommended solution to protect yourself against exorbitant medical expenses is to opt for a health insurance policy.

Purchasing a mediclaim policy, later on in life is not only an expensive affair, but you may also face a high chance of application rejection. For this purpose, you should invest in a health insurance plan early in life.

Following are the five major reasons you should buy a health insurance policy in your 20s.

1. Higher coverage

A health insurance cover offers financial protection against various expenses such as ambulance services, pre-hospitalization expenses, and post-hospitalization costs. You may enjoy a comprehensive and holistic coverage at a younger age. Insurers offer higher coverage, with respect to day care procedures, maternity benefits, and vector-borne diseases, among others.

2. Lower premium rates

If you fall in the lower age category, you may enjoy discounted premiums. Insurers consider youngsters as low-risk individuals and hence offer lower premium rates. You may enjoy an additional discount if you purchase an online health insurance policy. Due to the reduced cost of paperwork, insurance providers pass on the benefit of low cost to their customers.

3. Lifetime renewability

According to the guidelines stipulated by the Insurance Regulatory and Development Authority (IRDA), the statutory body regulating insurance in India, an insurance company can never refuse policy renewal to the customer. You may, therefore, seek the benefit of lifetime renewability, and enjoy coverage benefits for a long period.

4. No medical checkups

Health insurance providers provide coverage to individuals in the younger age group without any medical checkups. With the advancement of age, it becomes mandatory to undergo a medical checkup in order to receive insurance benefits. Insurers may reject your application based on the results on these tests, leaving you with no cover. To avoid such a situation, you may consider purchasing a health insurance plan early in life.

5. Tax benefit

Section 80D of the Income Tax Act, 1961, offers tax benefit up to a limit of INR 25,000 per budgetary year for premiums paid towards the health policy of self, spouse, and dependent children. If you cover your senior parents, i.e. above 60 years of age, you may enjoy an additional tax benefit of INR 50,000.

A medical emergency does not only result in emotional distress, but it also affects your finances. For this purpose, it is prudent to invest in a health insurance plan at the earliest.