Last Updated on February 26, 2020 by Gopal Gidwani

It is said that ‘prevention is better than cure’ and this is true even in the case of your health. Unexpected eventualities may arise anytime and anywhere but you can always secure yourself financially by purchasing a health insurance policy.

Before you pick a plan, there are a list of questions to consider. These include:

1) Why health insurance is considered necessary?
The rise in pollution, eating unhealthy foods, change in lifestyle, etc., has led to an increasing number of diseases that require medical treatment. These diseases can cost you all your savings. For you to have financial security, health insurance companies provide you with medical coverage.

2) What goes into the premium?
The amount paid by the insured every year to keep the health insurance policy active is considered as premium. However, the premium is calculated based on several factors such as location, term period, health of the proposer, age, and the type of plan opted for.

3) What are the benefits of health insurance?
Health insurance policies offer you several benefits like cashless claim, coverage of medical expenditure (including pre-hospitalisation & post-hospitalisation charges), tax benefits, coverage of critical illnesses, and extra coverage through add-ons.

4) What are the tax benefits on health insurance?
You’re allowed to claim a deduction up to a certain amount for the premium paid on your health insurance plan, as per Section 80D of the Income Tax Act.

5) Can multiple health insurance policies be bought?
Yes, you can buy more than one health insurance policy. However, it is not advised because it is better to have one policy with higher coverage rather than having multiple policies with smaller sums assured.

Reasons why you must purchase health insurance at an early age
People in their 20s or early 30s often have this misconception that they don’t require health insurance. However, people from this age group are mostly in the process of building their future. If they fall ill due to any major disease, all their savings would be spent on treatment. Therefore, it is even vital for them to have proper financial security.

Given below are some benefits of purchasing health insurance at an early age:
1) A health insurance plan is part of proper financial planning as it takes care of the treatment cost in the event of hospitalisation.
2) Older people need more medical attention. Health insurance premiums are decided keeping in mind the age as well as the health conditions of the proposer. If you purchase the policy at an early age, you can enjoy the benefits of paying lower premium.
3) If you buy a health insurance policy at a young age, you can easily get through the waiting period for certain illnesses as the incidence of these illnesses during young age is low as compared to getting insured later in life. During this period, you cannot make an insurance claim. Additionally, younger people have lesser chances of having pre-existing conditions that might affect their benefits.
4) You will have more options to choose from while buying a health insurance plan. Thus, you can opt for a wider coverage which means more benefits.

So, if you wish to enjoy the maximum advantage of your health insurance policy, purchase one as soon as you can. Also, for people in their old age, you can buy health insurance for senior citizens, which is tailor-made for them. Remember to always buy a policy that best suits your needs.