When you are in your twenties, the world feels new and beautiful, and the only thing you want to spend your money on is fulfilling your and your loved one’s wishes. There’s nothing wrong with that sentiment, of course. However, not investing in medical insurance is a mistake people in their twenties often commit. You might be surprised to learn that the National Health Accounts reported that the household out-of-pocket expenditure on health was 58.7 percent (Source Taken by National Health Accounts)of the total health expenditure in 2016-17.
The pandemic has made people realize that a medical emergency can happen at any time. It doesn’t inform you beforehand. The rising prices of quality treatment will also put a huge financial strain on you. It is prudent to purchase medical insurance as soon as possible. It covers medical expenses that are incurred because of an illness. Still not convinced? Read on to find more reasons why you should buy medical insurance.
While enjoying your twenties should be a priority, protecting yourself in emergencies is equally crucial. Buying medical insurance is no longer a choice; it has become a necessity to live a carefree life.
Reasons Why You Should Buy Health Insurance Before You Turn 30
- Lower premium and better policies: The premium on medical insurance significantly depends on your age. It’s a fact that people in their twenties are healthier and have fewer chances of getting a chronic illness. That is why insurance providers often charge a lesser premium to young people. As you grow older, the risk of falling ill also increases, and so does the insurance premium. Therefore, buy health insurance as early as possible and save substantially on the premiums you have to pay.
- Better financial planning: Not only is buying health insurance early cost-effective, but it also ensures better financial planning. Apart from the possibility of sudden illness, the possibility of accidents also exists. Medical insurance will ensure you don’t have to spend your hard-earned money on medical expenses.
Another benefit is those tax savings. You can claim up to Rs. 25,000 of your premiums annually under Section 80D of tax deductions. This allows you to invest your money in long-term investments with great ROIs.
- Shift in lifestyle: The pandemic has brought a shift in our lifestyles that cannot be ignored. The fear of getting a viral disease from the illness caused by our hectic work schedules has made it necessary to have an option for covering emergency medical expenses.
Our hectic work schedules have made us rely on fast food and less sleep without doing any exercise. All of this has made us more prone to health issues. Medical insurance will not only cover your medical expenses but also offer annual health check-up benefits.
- Widespread coverage: The best health insurance doesn’t only cover hospitalization fees. Today, insurance providers are providing more and more comprehensive insurance plans, especially to the younger generation. Many plans cover daycare procedures, ambulance expenses, and even dental, and physiotherapy services. Fertility treatments, maternity, and newborn expenses are also covered by some insurance plans.
Alternate options such as Ayurveda and Homeopathy are also covered under some plans. But that’s not it. With the focus on mental health, some medical insurance has also started covering mental illness expenses.
- Limitations of group health insurance: While many people believe that the group health insurance taken by their employers is enough to cover their medical expenses, it is not true. Group health insurance generally has limited coverage, and employees have to bear a substantial portion of their medical expenses. Another problem is that once you leave your job, you no longer have any medical insurance. Individual medical insurance covers all the limitations of group health insurance. You get wider coverage by only having to pay a small or no amount out of your pocket, depending on your policy.
Now that you are well aware of the benefits of buying a health insurance in your early age you should be aware of the factors that one needs to consider so as to buy the best health insurance plan available
Factors to Consider Before Buying Medical Insurance
- Waiting period: The waiting period refers to the time when you cannot claim against your insurance plan. It is typically present for maternity benefits and pre-existing illnesses. The waiting period differs as per different insurance plans.
- Inclusions and exclusions: Before purchasing any health insurance, you must carefully check which conditions are covered and which are not covered under it. If you don’t know the coverage of your insurance policy, it can lead to claim rejection.
- Premium and sum insured: The premium of a policy is determined by several factors. The more comprehensive the policy, the higher the premium. Thoroughly read the policy documents and understand even the smallest details before purchasing.
- Alternative treatments: AYUSH treatments have grown into popularity in India, especially Ayurveda and Homeopathy. Many people prefer them over allopathy treatments. Check whether your policy covers these alternatives or not.
- Room rent limit: Every health insurance has a room rent limit that lists the maximum room rent policy would cover. Depending on the hospital you visit and the type of room you select, room rent can cost a significant chunk of money.
- Coverage: Medical procedures are evolving, and new and better procedures are being preferred over traditional procedures. Choose an insurance plan that covers modern procedures and treatments. Also, check if they cover pre and post-hospitalization charges.
- Co-payment clause: The co-payment clause means you will have to pay a certain amount of your hospital bills. These policies usually have lower premiums, but they also offer less compensation. Carefully study the co-payment clause of your policy.
Buying medical insurance early in life ensures financial security and better financial planning and decreases everyday stress. It allows you to spend your money on fruitful investments and enjoy your life. The only cost you have to pay is a premium that stays constant while you grow in your life and career.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.