The Right Age of Buying Health Insurance
Summary: Given rising medical inflation, a health insurance plan is an absolute necessity. What one fails to figure out is the right age to buy health insurance. Your medical needs and possible emergencies differ from age to age. At a young age, with lesser responsibilities and better fitness, availing of a health plan can be highly cost-effective. If you are in your late 30s or early 40s, chances are high that you have a family and a family health insurance plan will be more suitable for you. If you are nearing your 60s you will need a plan that has a high entry age and wide coverage, for old age comes with reduced immunity.
There is a notion that when you are young and healthy, you don’t need health insurance. However, today’s life is erratic and fast-paced with all kinds of habits that can have a detrimental effect on the body. Lifestyle-related illnesses have also become quite common among young adults. Also, life does not come with a guarantee that you won’t develop any ailment in your early 20s or so. In case, there is one, you should be well prepared to get the due treatment. Your best bet against such uncertainties is a health insurance plan.
Approximately 67.78% of total healthcare expenditure in India is borne by residents, while government schemes and regulatory bodies finance the remaining portion.Private entities fund only 18.2% of overall healthcare, which is sharply different from the global average.(Source taken by DownToEarth)People face a considerable financial burden when it comes to healthcare due to this disparity in government spending and rising medical inflation.Also, medical inflation is at a steep figure of 18-20%.(Source taken by Freepressjournal) Getting a health insurance policy to deal with this rise is always a good idea.
When Should You Buy a Health Insurance Policy?
Experts say that adults must buy a health insurance policy in their mid-twenties or early thirties. People at this age generally are in their best health without any major financial responsibilities. At this age, if you are physically fit and follow a quality lifestyle, the premium amount will also be relatively lower. While you can buy health insurance even if you are above 60+, the coverage and the premium charged would vary.
- Health insurance in your twenties: You will be able to pay for a health insurance policy comfortably if you buy one in your mid-20s. You can choose the best coverage based on your insurance needs because your premiums are affordable. If you plan to start a family in the coming years, you can afford additional coverage such as maternity insurance. A lifetime renewal facility and cumulative bonus are also available.
- Health insurance in your thirties: In your thirties, you are more likely to choose a family health insurance plan. If you have a family, If you have a family, you may want coverage for your spouse and children. You may also want to purchase additional coverage for diseases, such as heart problems, whose symptoms begin showing at this age. The likelihood of you having an increase in your family health insurance premium or raising a claim is higher when you reach your thirties.
- Health insurance in your forties and fifties: In your forties and fifties, you would need to buy a family health insurance policy that offers higher coverage. It is at this age that you will have the greatest financial responsibilities. In addition, you are more likely to have developed diseases such as diabetes, high blood pressure, cancer, etc. Consequently, you may need to choose critical illness and sum insured enhancement benefits. As a result, your premiums will be relatively high at this time. Purchasing family floater insurance may reduce your premiums to a certain extent. You can compare the available plans online and buy the one that fits your need and budget.
- Health insurance after your sixties: You will have to pay a hefty premium amount if you buy family health insurance after turning 60. During this age, you may have severe health ailments that require long-term treatment. It is likely that you will need a senior citizen or family health insurance policy at this stage of your life. These policies cover ayurvedic treatments, domestic hospitalizations, organ donation expenses, etc., but they can carry huge premiums.
Buying health insurance when you are young has the following benefits:
- No Pre-policy Medical Check-up: You won’t have to undergo a medical exam if you apply for a health insurance policy when you’re younger. This prevents the insurance company from discovering diseases/medical conditions that would affect your premium. People over 45 are usually not eligible for this option, as their medical examinations determine their premium amount.
- Cheaper Premiums: Health insurance premiums are heavily influenced by your age. Insurers consider a younger person to be healthier, and therefore to be at a lower risk of a medical emergency. In contrast, older people are more susceptible to ailments and are therefore a major liability for insurers. Thus, the younger you are, the lower your premium.
- No Claim Bonus: Almost all health insurance plans offer a cumulative bonus for every year without a claim. You can use this bonus to increase your sum insured amount at no additional cost. Younger people are more likely to be in good health and may not need to make a claim during their initial policy years. As a result, they accumulate bonuses easily over time. The cumulative bonus may be difficult to earn for older people due to their age-related medical conditions.
- Claim-free Waiting Period: Some health insurance policy comes with a 30-day waiting period. The probability of a young person having any serious medical condition during this time is very low. So, they won’t have any problems waiting out the initial waiting period. It’s not the same for elderly individuals since they may experience a medical emergency within days of purchasing the policy, but will not be able to submit a claim. Also, their policies may be outlined with a longer waiting period.
- Financial freedom: Health insurance is primarily used to cover medical expenses. By having a health policy, you can save a lot of money on medical expenses, especially those associated with sedentary lifestyles. Otherwise, you would have to pay for these expenses from your own pocket. Thus, the sooner you buy the policy, the more financial freedom you can enjoy.
Individual or family health insurance policies make your life easier. When you buy health insurance, you need to think of every aspect of your life affected by the premiums. When you are young, you want to fulfill dreams of traveling, buying a home, or even having a grand wedding. But you must remember, only when you have health do you have a life!
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.
