‘Prevention is better than cure’ is a common saying, but how many young adults take this saying seriously? Young adults often don’t pay attention to health coverage options as they are often in the best of health. The fact is that any medical condition or a disease could strike at any given time without a warning. At such times, paying an exorbitant price for hospitalisation could burn a hole in your pocket. Hence, getting a health insurance policy at a young age is important.
The following reasons throw light on why 25 is the right age to get a health insurance plan
Get over the waiting period early
Most health insurance plans have a waiting period of 2-3 years for certain diseases. Getting a health insurance plan when you are younger and less prone to these diseases will ensure that your policy covers all the diseases when you need it.
Protection for your hard-earned savings
25 is the age when most youth pave a way for their career. They begin to save a part of the salary. In case a disaster strikes, an accident or a disease, medical expenses can take away your hard-earned savings. Instead, be wise and get a health insurance policy. In any case of an unforeseen hospitalisation, your policy comes to your rescue without leaving you financially crippled.
Tax benefits
If your annual income exceeds Rs. 2,50,000, you will have to pay income tax based on the income slab that you will fall under. Health insurance plans offer a monetary exemption which reduces tax liability. Getting a health plan provides tax relief under Section 80D of the Income Tax Act, 1961. Taking into account the rising cost of medical expenses, you can also cover your parents through which you can get a further deduction of Rs. 30,000 from your taxable income.
Lower premiums
There are certain benefits of starting early. The younger you are, the lower the premium amount. Insurance companies consider youngsters as low risk and offer health plans at a lower cost. Obtaining health insurance at an affordable cost at a later date may be difficult as your health status might change. Later on as you grow older, it not only becomes expensive, but qualifying for the plan becomes difficult (if you are suffering from some major disease or ailment) as well.
Assuming responsibility for your family
Chances are that you may get hitched and plan a family at this age. Obviously, you would want to cover your partner and kids from any kind of uncertainty. Coverage is important so as to save your family members from financial burden. It can be a great source of funds for dependents if the unexpected happens.
Upgrade for less
Insurance companies are more than happy to upgrade the health insurance plan when the insured is young. Upgrading at a later date attracts higher premiums. If you already have a health insurance plan, a top-up cover can enhance your protection at a lower cost. If you are covered under a family floater policy, ask for an upgrade for the other members in the policy.
A medical emergency can attack anyone at any point of time, thus creating an impact financially and emotionally. Thus, it is more than prudent to get covered early in life. The incidence of lifestyle illnesses is on the rise. Preventive services like tests, screening, counseling, vaccines etc. help you manage your health in a better way. It can give you peace of mind and financial stability. Buying a health insurance cover early is one of the best financial decisions you could ever take.
Know more about the benefits of health insurance policies at 5 Paisa Insurance.