We understand the importance of health insurance in our lives, especially after the outbreak of COVID-19. Health insurance becomes essential due to the increasing health risks of a sedentary lifestyle. People generally become aware of the importance of health insurance in their 30s and 40s and regret not buying a health plan earlier in life. Hence, buying health insurance early in life can benefit any individual.
Benefits of Buying Health Insurance in the 20s
Buying a health plan in the early stage of life has various benefits. Below mentioned are some of the benefits of buying a health insurance plan in your 20s:
Protection against Unhealthy Lifestyle
We all lead sedentary lives today, and health problems are becoming more prevalent. Hence, health insurance is crucial as it acts as a safety net when needed.
The age of the policyholder has a massive impact on how premiums are determined. The cost of the premium goes up as a person ages since their health deteriorates along with it, and they need more medical care. However, when the policyholder is young, the chances of developing health problems are relatively low, resulting in cheaper premiums.
Better Financial Planning
Health insurance is one of the critical components of overall financial planning. You can also claim a tax deduction on the premium paid under section 80D, Income Tax Act, 1961. As a result, you can use the money saved on taxes to meet a different goal of yours for the future.
Lower Rejection Rate
People in their 20s are less likely to have serious illnesses, which makes it less likely that they will file a claim. A younger person is less likely to experience serious health problems, which lowers the chances that a claim will be denied.
No Claim Bonus
Individuals are eligible for the No Claim Bonus if they have not filed any claim during the policy term. This bonus accumulates with each renewal of your health insurance policy and can be subsequently used by the policyholder. Buying health insurance at a younger age allows you to earn a higher amount of NCB than one who starts investing a year later.
When you do not file a single claim during the policy term, you are eligible to receive a cumulative bonus, which reduces your premium amount for the next year by a certain percentage. A younger person has a lower risk of having a critical illness, which reduces the chances of filing a claim. In such situations, health insurance companies offer a cumulative bonus to their policyholders.
Top Reasons to Buy Health Insurance at an Early Age
Below mentioned are the reasons to buy a health insurance plan at an early age:
- Easy to Acquire
- Comprehensive coverage at affordable prices
- Benefits of No Claim Bonus
- Easy to Spend Waiting Period
Why wait until your health has worsened and you need to arrange funds to cover the cost of treatment? Therefore, it is best to buy health insurance as soon as possible. Buying health insurance early in your twenties saves you money in case of medical emergencies but also frees you up to make other important financial decisions in the future.