As you navigate the demanding phase of youth, juggling a heavy workload, peer pressure, and family responsibilities, it’s easy to neglect your health. The stress associated with modern lifestyles makes a significant portion of India’s young population susceptible to various lifestyle-related health problems.
Therefore, securing a personal health insurance policy is a crucial investment today. This cover helps manage medical emergency expenses and safeguards your savings. For single individuals or those not planning a family soon, an individual health cover is the most suitable choice.
In this article, you will get to know about the seven reasons that compel you to thank your first health insurance policy for covering your health.
Your first health insurance policy: the change it can create
Buying health coverage early in your career is arguably the most significant health and financial decision you will ever make. It establishes a vital foundation for your future protection and overall well-being. It is far more than just a safeguard against acute illness; it’s a long-term investment in financial stability and health continuity.
4 risks you can avert by buying health insurance policy early
The awareness about medical insurance is not widespread. Many working professionals continue to solely rely either on their savings or employer-provided Mediclaim to meet their medical expenses. Consequently, they face financial hardships when unexpected medical bills arise.
Here are four financial risks you can easily prevent by buying a health insurance policy early:
- Eliminating waiting periods: All health insurance policies include mandatory waiting periods. These typically are:
- 30 days for new illnesses.
- 2 to 4 years for pre-existing diseases (PEDs).
- 1 to 2 years for specific procedures or conditions (such as cataract surgery or joint replacement).
Buying your first health insurance policy while young and healthy enables you to complete long waiting periods when the need for coverage is low. By the time you are more susceptible to chronic illnesses, your coverage will be fully active.
- Avoiding high premiums: Since health insurance premiums are calculated based on the policyholder’s entry age, beginning coverage earlier results in lower premium throughout your life. For instance, a 25-year-old poses a much lower risk and will pay significantly less over their lifetime than someone who waits until age 45 to purchase their first health insurance policy.
- Skipping underwriting: When you are young and healthy, the insurer’s risk assessment, or underwriting, is usually simple. However, as you get older or develop a chronic illness, underwriting becomes more complicated and can result in:
- Policy rejection.
- Permanent exclusion of pre-existing conditions.
- Imposition of loading charges (an increased premium).
- Averting financial crises: An unforeseen medical emergency (e.g., a road accident, sudden surgery) can easily cost lakhs of rupees. Without insurance, these expenses are paid from your savings, often wiping out years of financial planning, investment growth, or emergency funds. Your first policy serves as the critical barrier protecting your accumulated wealth.
Getting early health coverage: 3 benefits you shouldn’t miss!
Averting the risks mentioned above is a huge benefit in itself. However, buying health insurance policy early offers advantages you will value for a lifetime:
- Credit for portability and continuity: Most insurance plans allow you to seamlessly port your policy to a different insurer without losing the credit accrued for completed waiting periods. This continuous coverage is a valuable asset established with your first policy.
- Early access to no-claim benefits: Many policies offer a No-Claim Bonus (NCB), which increases the sum insured for every claim-free year without raising the premium. Starting early allows you to maximize the time spent building this NCB, significantly boosting your coverage over the decades.
- Renewal bonus: This is one of the basic benefits you will receive if you start your health insurance policy early. Besides, some leading insurers like Care Health Insurance offer something above the regular bonus— the infinity bonus. This specific benefit boosts your coverage by 100% of base sum insured an unlimited number of times.
So, these are some of the evident benefits of buying a health insurance policy in the early stage of your life.
Wrapping up
With that, you now understand that your first health insurance policy while you are hale and hearty is a decision that pays dividends for a lifetime. It is the most effective way to eliminate financial risks associated with medical emergencies, ensure you complete crucial waiting periods, and maximize long-term benefits like the No-Claim Bonus and portability. So, don’t wait for age or illness to complicate your application; make this foundational financial and health investment today.
Disclaimer: Verifying the policy details and coverage with the official policy documents is essential. Always consult a medical professional to verify the details of the health concerns.