You must have found health insurance and finance experts advising you to buy health insurance as early in life as possible. Well, they are making a pretty valid point. The fact is that medical emergencies can occur anytime and you need to be financially prepared for them from before.

A typical health insurance plan offers you coverage against medical treatment expenses. Health Insurance in today’s world is critically necessary for everyone, the reason being rising medical costs and increasing lifestyle diseases amongst people.

A medical emergency can heavily impact your emotional as well as financial life. Hence, it is prudent that you buy a health insurance plan early in life. You should even consider buying critical illness insurance and personal accident insurance for specific coverage. Moreover, when you buy health insurance plans in your early 30s, you get many assorted benefits.

5 main reasons why 30’s is the best time to buy health insurance plans in India:

1. Lower premium cost as compared to the cost in your 40’s or 50’s

Simple logic says that the younger you are, the lower is your premium. Alternatively, the older you get, the higher your premiums get. If you are looking to buy a health insurance plan in India, know that increasing age increases your health insurance premium too.

This is how health insurance premiums rise with age—When young, the chance of your encountering a health condition and visiting a doctor is low. Now health insurance premium cost is directly associated with your chance of getting a disease. And so your premium does not cost you much. As your age increases, the probability of your facing health conditions and visiting doctors is steep. And so your premium cost is high. Thus, your health insurance premiums are highly dependent on your age.

There is a considerable rise in the premium cost as one exceeds the number 30. So, it is quite befitting to buy health insurance early in life to avoid high premiums and gain additional benefits. 

2. The sum assured in group health insurance is not enough to cover you

Considering our current lifestyle and increasing medical expenses, depending completely on the group health insurance plan is not a wise decision.

The group policy coverage your company offers you is not sufficient to fulfil long medical bills. So, the wise thing to do is to get individual health insurance coverage along with the group health insurance plan.

When you buy health insurance at a young age, you make yourself mentally, physically and financially secure for your present and future.

3. Lesser exclusions for diseases as you are not likely to suffer from any major diseases in your 30’s

Health insurance companies impose exclusions for almost all the diseases you have contracted or diseases that you are prone to get. They do this to keep the risk rate low. Such exclusions may come in your way at times when you want to use the cover.

If you buy a health insurance plan in absence of any critical or major disease, i.e., at a young age, you are likely to enjoy the benefits out of your health insurance. 

4. Financial security as you get many healthcare benefits over and above medical treatment expenses coverage

A health insurance plan brings to you many healthcare benefits apart from paying your hospitalisation charges. A typical health insurance plan in India covers day care procedures and OPD, which is much more than just hospitalization.

Vector borne diseases are also covered under some plans. Many health insurance plans offer maternity benefits that may be relevant in your 30’s. Moreover, there is a provision in plans to cover your newborn right from its birth without paying any additional premium.

You can be financially tension free as many health insurance plans in India also offer cashless treatment features. With your cashless health insurance plan, you can opt for healthcare services without paying anything from your pocket. The benefit eventually helps you manage your finances better. You do not need to have any worries regarding healthcare-related expenses.

5. Protection against lifestyle-related diseases

Our sedentary lifestyle and modern working patterns have given us many different lifestyle-related diseases like diabetes, heart diseases, etc. at a young age. Protection against such diseases is a crucial reason why you should opt for health insurance early in life.

With an early health plan, you can avoid huge medical bills resulting from the treatment of such diseases. If you want to be extra precautionary, you can opt for critical illness insurance. Also, if you want insurance coverage for accidents, you can buy personal accident insurance.

Incidence of lifestyle illnesses have highly increased. You don’t have to reach the 60-year mark to require a health insurance plan. Our sedentary lifestyle has led to occurrence of lifestyle disorders related to heart, lung, cancer, and stroke, claiming many young lives. Therefore, it is critical to insure yourself timely.

Also, many health insurance plans in India offer benefits like annual health check ups for health awareness. Other preventive services include screenings, counselling, and vaccinations to help you better manage your health.

Other benefits

You can save tax by paying premiums. You are liable to get health insurance tax benefits under section 80D of the Income Tax Act. The current annual ceiling for tax exemption is Rs. 25,000 in respect of premium for you, your spouse, and dependent children. Limit increases upto Rs. 50000/- if   either you or your spouse is a senior citizen (60 years or above).

Also, buying early means all will be set when you want to enjoy the full benefits of your plan. There is this thing called waiting period for certain special treatments, surgeries, pre-existing illnesses, etc. Now when you buy a policy in your 30’s, you won’t be needing it immediately. And by the time you’ll need it, you would have served your requisite waiting periods. You can thus claim all full benefits when the time comes.

Thus, buying a health insurance policy in India at an early age can also help you avoid the waiting period later and readily avail its benefits.

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One Comment

  1. Trivendra says:

    Very indepth article on buying health insurance in india. Thanks Taxguru for making life simple. As buying health insurance is tough job. Many indians dont opt for it.

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September 2021