The adage health is wealth has never been truer. Lifestyle diseases like diabetes, obesity, and hypertension are on the rise and affecting more people than ever before. This, coupled with the high rate of medical inflation has made the purchase of health insurance an absolute necessity.
Unfortunately, most youths think of insurance as an unnecessary burden and put off purchasing health insurance plans until much later on in life. But, there are a number of benefits that are associated with purchasing insurance as a youngster.
Here, we’ll take a look at some of the reasons why time is of the absolute essence while purchasing a health plan.
1. There’s a Waiting Period – Every health insurance policy has something known as a waiting period. Typically, individuals cannot make claims for non-emergency medical treatments during this waiting period, which can last for one or two months from the starting date of the policy. Additionally, specific procedures or covers could have different waiting periods. For example, certain policies will cover the cost of childbirth only after a policy has been in effect for a few years. When you’re young, you’re less likely to have health complications, so the waiting period can pass without you needing to make any claims.
2. Your Premiums Depend on Your Age – Your premiums are directly proportional to your age. The younger you are, the lower your premiums will be. Individuals who are purchasing insurance for the first time at the age of 40 are expected to shell out a higher premium than a 20-something individual buying insurance.
3. You Aren’t Likely to Get Rejected – Typically, when you’re young, you aren’t likely to suffer from too many health complications. Insurance companies consider this to be good since they assume they won’t have to settle too many claims against your policy and are less likely to reject your application for insurance.
4. You Can Benefit from the No Claim Bonus (NCB) – Most insurance policies offer you a no claim bonus. This means that for every year that you don’t make a claim against your policy, your premium cost will be reduced, or your sum assured will be increased. When you’re young, you’re fairly healthy, so you can enjoy the no claim bonus for quite a few years.
5. You’ll Get Tax Rebates – Technically, the tax rebates are not age-specific. But if you purchase insurance when you’re younger, you can enjoy these tax benefits for longer. Under Section 80D of the Income Tax Act, 1961, premiums paid for the upkeep of health policy can be deducted from your taxable income.
Today, purchasing health insurance online is a quick and easy process and can be completed in a matter of minutes. If you’re young and healthy, your online health insurance application will be approved instantly, and you can start reaping the benefits of getting insured early.