What Is The Right Age To Purchase A Health Insurance Policy

We need to accept the fact that we are living in very unpredictable times. Covid-19 has proved everything on this planet is uncertain. At that time, we experienced fatalities of all age groups, from teens to adults; everyone. Considering the world’s uncertainties and sky-touching healthcare costs and hospitalisation expenditures, one needs to safeguard from unplanned medical situations. Buying health cover plans as early as possible is the best way-out.

Having a good health insurance cover gives you a strong ground to tackle unpredictable medical emergencies. It is essential to purchase a health insurance plan at the right age to utilise the most benefits. Thus, people of all ages are insuring their health to protect their savings  from unexpected medical expenses. But what is the right age to purchase a health insurance policy?

The right age is ‘now’

According to experts, the ideal age of purchasing medical insurance is now. Medical emergencies can knock on the doors regardless of age and fitness level. Several insurance companies have introduced plans covering newborns as well as adults of 90+ years of age. Prominently, IRDAI ¹ (Insurance Regulatory and Development Authority) has lifted the age bar of 65 years to buy a medical insurance policy. Anyone can buy health cover plans, which highlights the need to have one because the sooner, the better.

Advantages of buying health insurance policy at younger age

1. Lower premiums, more benefits: The risk of health issues increases with age, leading you to higher premiums. Younger people qualify for lower premiums. Age and current medical conditions determine the insurance premium. Buying a policy at an early age like 20s can help you monetarily in the later years of life. The healthier and younger you are, the lesser would be your policy premium.

2. Enhanced chances of scoring NCB bonus: For every claim-free year, you get an additional benefit of no claim bonus where you receive a hike in your sum insured without raising your premium. Being a young policyholder, you become eligible for this benefit and increase your total health coverage.

3. Lesser dependency on guardians: Financial independence  comes when you plan your finances for long. By investing in the best health insurance policy early, you would be able to prevent medical costs and create a stable financial future. You can release your guardians from the financial bondage and liberate them. You can save a lot of your parent’s hard-earned money if you invest in a good insurance policy in your early years.

4. Serving waiting period becomes easy: Waiting period is a specified duration for which the policyholder needs to wait before availing policy benefits. Pre-existing conditions have a set waiting period. In most of the policies, it is 24 to 48 months. Young people are less likely to claim the coverage immediately after buying a health insurance plan due to good health and strong immune system. So, if you buy a policy “at the right age,” then you can enjoy uninterrupted coverage when you need it the most.

5. Tax benefits: As per Section 80D of the Income Tax Act 1961, if you are spending on health insurance premium, you are eligible for tax deductions. So, one more advantage on the list.

6. Comprehensive coverage: Being a young health insurance policyholder, you can avail several advantages. From critical illness, pre-hospitalisation expenses and post-hospitalisation expenses to ambulance cover and daycare treatments, you get better coverage in all policy benefits. As a whole, you get extensive coverage and experience high-quality healthcare after buying an early health insurance policy.

5 Tips to buy the best health insurance policy online

1. Equip yourself with the right knowledge: Read the terms and conditions carefully before you proceed with any insurance company.
2. Enough Sum Insured: The SI (Sum Insured) should be enough to take care of your medical needs. The higher the sum insured you need, the higher premium you need to pay, so analyse the affordability accordingly.
3. Compare quotes online: Before finalising any, make sure you ‘request a quote online,’ and get an estimated premium for your policy. Gather the quotes, compare them and find the best one as per your needs.
4. High claim settlement ratio: It is the total number of claims settled divided by the total number of claims received multiplied by 100. We recommend you to choose a health insurance company that has a more than 90% claim settlement ratio. Such companies would be your reliable health partner and can serve you with the best services.
5. Check for plan’s validity: Choose a plan with lifetime renewability. As you would be starting earlier, a policy with unlimited renewal will award you with several important acquired bonuses, which you might not be able to grab during the later years of age.

In Conclusion

Many people plan to buy health insurance cover after going through a health crisis. That experience is everything. In today’s fast-paced world, it's the survival of the fittest and the fastest. So, the journey of securing your financial future begins today. If you are in your 50s or 60s, and haven’t purchased any health insurance plan, nothing to worry. It’s never too late to start. Even post-50, it is important to buy a health insurance policy. Yes, the premiums will be higher than the ones who started earlier, but the cost of not having health insurance would be higher. So, you should  begin today and protect yourself financially against medical emergencies and safeguard your well-being.