Why it's important to have health insurance while you're young
Our parents frequently tell us to save money or have a backup plan in case of crises. We are urged to invest in assets like fixed deposits, mutual funds, and life and health insurance plans. However, while we are young, activities like binge-watching our favorite television series, working out at the gym, and similar activities appear more significant to us. They help us feel content and healthy. We live by the maxims of loving and being happy with ourselves.
You might think it is superfluous and odd to start saving for a pension fund in your early 20s. However, it's crucial to do things like have a health insurance plan and save money for a child's education. It is the most shrewd strategy you can use to manage your money. Your funds might be protected with a health insurance coverage.
Purchasing a quality health insurance plan
Health problems and crises can happen at any time in life, regardless of age or financial status. Again, the stress of the modern work-life balance is detrimental to our health and way of life. Even while medical facilities are developing quickly thanks to research, technology, and money, it is becoming increasingly challenging to discover a long-term cure for novel disorders like Covid-19.
But then, while we are young, we think, "What need is there to have a health insurance coverage at this age? I'm doing well, thank you. Keep in mind that even young children might experience the early effects of serious diseases. Therefore, getting a health insurance coverage early in life is crucial.
● The need to establish a strong claim history:
The best time to get a health insurance coverage is when your overall health is at its best and all of your body's organs, both internal and external, are in good condition. When you are young and healthy, you have to pay less in premiums since it is less likely that you would file a claim. This might be viewed as a blessing in disguise as it will enable you to create a strong claim history.
● No-Claim Bonus:
When there are no claims in a given year, you can benefit from a no-claim bonus. One benefits from a no-claim bonus (NCB) if there are no claims in any given year. Typically, you may add more coverage for free for each year without filing a claim. The insured amount for coverage rises with time, and you benefit from having a bigger insured health cover amount regularly without concern in addition to maintaining good health.
● Critical illness insurance:
Life-threatening illnesses like cancer, renal failure, paralysis, etc. affect even young people due to a sedentary lifestyle. The Critical Illness Insurance Policy can provide coverage for certain severe illnesses. Such diseases are very expensive to treat, requiring prolonged periods of chemotherapy, frequent hospital stays, admission, and other costs. Many expenses related to diagnosis and treatment are often covered by critical illness insurance, including hospitalization, chemotherapy, radiation, surgery, blood transfusions, nursing care, and the price of prescription medications, among others. When a severe disease that qualifies as an acute illness is diagnosed, a critical illness cover immediately pays the sum promised, regardless of the hospital costs. Therefore, having a critical sickness insurance or rider is crucial and always beneficial to prevent one's savings from being depleted in a medical emergency.
● Pre-existing conditions:
By default, if you purchase health insurance while you are young, you are taking care of any waiting periods associated with prior illnesses. However, only a limited number of waiting periods are protected by your pre-existing conditions. The duration can be anything between one and two years, with the majority of previously existing conditions becoming covered after four years. The benefit of purchasing a policy early in life is that when you become older, the majority of existing ailments immediately fall within the guaranteed amount.
● Tax benefit:
Purchasing health insurance is advantageous for you when you are young and have a source of income. According to the Income Tax Act of 1961, if you pay a premium, you will receive tax advantages of up to Rs 25,000. The tax advantage on the health insurance plan purchased in your parents' names might increase to Rs 50,000 if they are financially reliant on you.
Conclusion:
We are not very good at managing our funds while we are young. Having health insurance makes it easier for us to manage our money and preserve our savings. In order to protect your long-term financial objectives, guarantee lifetime access to high-quality healthcare, and lead a healthy life, you should get a health insurance policy.