The recent pandemic has demonstrated that medical emergencies can strike at any point in time and one must be prepared for it. It has also altered youngster’s mindset wherein they used to disregard the importance of health insurance, thinking no substantial medical complications will progress during this age. However today, the pandemic has forced everyone to acknowledge the importance of having health insurance as it gives financial protection and much-needed peace of mind during medical emergencies.
On the occasion of International Youth day, enlisting the top reasons one should opt for health insurance before turning 30:
- Lower premium charge: The probability of individuals in the age group of 25-30 years of being diagnosed with severe ailments is relatively low. Hence, the premiums charged on insurance plans availed by youngsters are more economical compared to policies purchased at a later stage in life.
- Neutralizing the effect of waiting period: Treatment coverage for many insurance plans has a specified waiting period for certain treatments including pre-existing diseases. Such a waiting period can range from 30 days to 4 years, depending upon the type of ailment. As the chances of needing to make any claims at the age of 30 are low, an individual has ample time to wait for the lock-in period. Thus, when required, claims lodged would be out of the waiting periods on completion of the stipulated period of coverage.
- Supplementing your employer cover: Youngsters entering the new to job market often feel that a group health insurance policy activated in their name by their employer will suffice all their medical needs. In such cases, a significant portion of the premium burden is borne by the employer, reducing the liability of salaried workers, but the coverage extended is limited. Also, if you decide to quit your job, the policy ceases to exist. Hence it is advisable to opt for standalone health insurance, which will ensure comprehensive and continuity in protection.
- Covering costs beyond hospitalization: Nowadays, many health policies cover daycare expenses, home treatments, OPD and not just serious hospitalization costs. Most plans also have maternity benefits, which may be useful at this stage of life. It also gives financial security to expecting mothers since the waiting period is over.
- Claiming tax benefits: Besides saving one from the trauma of medical expenses, health insurance can be instrumental in saving tax. The premiums paid for a health plan gives you deduction under Section 80D. There is, however, a limit to the amount of deduction which you can claim.
Health Insurance is necessary for every individual, but buying it early in life gives you ample benefits. Always read the policy document carefully to understand the terms of the policy before making the final decision.