Right Age to Buy Health Insurance Policy

According to the health financing profile curated by WHO, approximately 67.78% of the total healthcare expenditure in India was borne by residents, while the remaining was financed through government schemes and regulatory bodies. This comes in sharp contrast with the global average, and wherein private entities fund only 18.2% of the total healthcare. (1)

The disparity in government spending combined with medical inflation imposes a substantial financial burden on individuals with respect to healthcare costs.

Mercer Marsh Benefits survey of 2017 revealed a 10% medical trend rate in India, implying that per capita health care expenditure is expected to rise by the stipulated rate.

Such statistics illustrate the rising need for a health insurance policy to meet all corresponding expenditures. Even though various healthcare plans are available to cater to the mass demographics of the country, opting for an insurance plan before your turn 30 is ideal, owing to its vast array of benefits. 

The youth of the country often seem to possess a mindset wherein they disregard the importance of health insurance policy, thinking no substantial medical complications will progress during this stage.

The delay in availing such vital insurance plans is to avoid losing out money as the majority of them think availing it at a later stage in life will maximise the returns realised.

Such a thought process often leads young individuals to lose out on the significant benefits which health insurance policies extend.  Some of the advantages can be listed as follows:

1. Avail Health Insurance Plans At Lower Premium Charges

Chances of individuals lying in the age group of 25-30 years of being diagnosed with severe ailments are predictably low. Barring unforeseen or genetic illnesses, the odds of developing any other type of critical disease are negligible, reducing the liability of an insurance provider.

For such reasons, the premiums charged on insurance plans availed by individuals who are 25-30 years old are lower compared to policies purchased at a later stage in life. As the premiums charged do not fluctuate over time, people tend to save substantially through long-term health insurance policies. 

2. Enjoy No Claims Bonus for Every Non-Claim Year

Every subsequent year, when no claim is made against a health insurance policy, is rewarded with a no claim bonus. The bonus earned can be utilised to reduce your future liability, thereby effectively dipping the monthly expenses.

In some instances of prolonged non-claim years, a higher sum assured is promised to insured individuals.

3. Negligible Financial Burden

Unforeseen events are a part of life. You can never predict a road accident or diagnosis of severe medical ailments without any seemingly persistent symptom. Nonetheless, in the event of such unfortunate health complications, the treatment expenses can be substantial. 

Having a health insurance plan in your name comes in handy in such situations, helping you avail treatment at renowned hospitals without digging a hole in your pocket.

Digit Insurance is offering Daily Hospital Cash Benefit as well, covering all personal expenses during the event of hospitalisation or recovery period. With a health insurance plan, you can thus secure your financials and solely focus on the recovery.

4. Overcoming the Limitation of a Group Health Insurance Policy

Individuals just joining the job market often think that a group health insurance policy activated in their name by their employer will suffice all their medical necessities.

Even though a significant portion of the premium burden is borne by the employer reducing the liability of salaried workers, the coverage extended is limited in most cases. 

People are often required to bear a substantial portion of healthcare bills by themselves (co-payment clause is present). Group policies also come with room rent capping. Also, if you decide upon leaving the stipulated company, the health insurance facility ceases to exist. The solution? 

A standalone health insurance policy. It negates all such limitations ensuring comprehensive protection to individuals.  You can enjoy the entire sum assured every year till maturity.

You also have sum insured refill option, wherein up to twice the sum assured amount can be claimed every year provided two major medical ailments occur in the same year but are not interlinked.

Know more about Compare Health Insurance

5. Enhance Your Mental Wellbeing

According to data released by WHO published by 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 the age of 44 are highest compared to any other demographics of the country. (2)

Treatment for such mental disorders is paramount as per these statistics, through appropriate psychiatric help and medication.

Major insurance providers recognise this need and offer adequate coverage against the same with their policies. You can claim compensation for all expenses incurred in obtaining psychiatric therapy and consuming prescribed medications. 

6. Claim Income Tax Benefits

Though not specific to young adults, tax rebate can be claimed against the money spent towards premium payments of a health insurance policy.

Up to a maximum of Rs. 25,000 can be claimed for exemptions under Section 80D against premium expenses every year. 

Know more about:

• Health Insurance Tax Benefits
• How to Save Income Tax in India

7. No Medical History Required

As the chances of having a complex health condition are minor before you turn 30, insurance providers usually do not require comprehensive details of medical history. This reduces the hassles of availing a health insurance policy to begin with. 

8. Lower Claim Rejection Rates for Young People

Availing health insurance policies at a later stage in life might lead to rejection of the same, especially if an applicant has already been diagnosed with a specific disease.

You might have to bear the entire burden of treatment of such complex ailments, which is likely to bear a dent in your pocket. 

Such problems do not arise if you choose to avail a comprehensive health insurance plan during the early years. 

9. Widespread Coverage Ensures All-Round Protection

Opting for health insurance plans from a renowned company makes you eligible for several benefits extended. Claims can be made for a medical check-up, outpatient department charges, as well as expenses incurred for alternate therapy.

A standard health insurance policy ensures that individuals extract the maximum possible benefits from the policy they purchase.

Know more about Individual Health Insurance.

10. Get Annual Complimentary Health Check-ups

Certain insurance companies facilitate annual check-ups with their health insurance plans. This allows you to be on top of any medical ailment developing in the upcoming years, through adequate precautionary measures and undertaking an early treatment regime. 

11. Negate The Effect of Waiting Period

Treatment coverage for multiple insurance plans has a specified waiting period for pre-existing diseases. Such waiting period can range from 30 days to 4 years, depending upon the type of ailment and cost of treatment.

Any new diseases contracted before the lapse of 30-90 days is not covered under standard health insurance plan, while pre-existing diseases come with a two year waiting period. 

As the chances of making any claims while availing insurance at 30 years is low, an individual has ample time to wait out the lock-in period.

Thus, when required, claims can be disbursed successfully upon completion of the stipulated period.

Know more about:

• What is Waiting Period in Health Insurance
• What is Pre-Existing Disease in Health Insurance

12. Cover Maternity & New Born Expenses

A maternity insurance cover comes in with a waiting period of two years under standard health insurance policies. An insurance policy with add-on maternity plan comes in handy if availed early on, as it gives financial coverage to expecting mothers during their pregnancy after the waiting period is over.

Know more about Health Insurance with Maternity Cover

13. Coverage against Fertility treatments

Certain health insurance plans provide coverage against fertility treatments for couples suffering from complications in their respective reproductive cycles.

Such coverage is inclusive of various forms of treatment, such as in-vitro fertilisation (IVF), intrauterine insemination (IUI), gamete intrafallopian transfer (GIFT), Intracytoplasmic sperm injection (ICSI), etc. Such treatments are expensive and can cause substantial financial strain on individuals.

Having a health insurance policy extending coverage against such medical expenses can help young adults seek quality treatment for such diseases, helping them start a family on their own without any unrequited monetary burden.

Owing to rising fertility problems among the masses, (a by-product of sedentary lifestyle), having such covers proves to be helpful in the long run when people want to start their own family.

Know more about Health Insurance Plan that Covers Infertility.

The above benefits allow you to remain in the prime of your youth, ensuring you have no financial strain on your shoulders owing to your health conditions. Quality treatment in case of diagnosis maximises the probability of smooth recovery as well, which in turn, helps you retain your productivity level.

Remaining in good health also increases your chances of earning a higher wage through productive work, all whilst premium liability remains constant.