In your 20s and just started working? Here’s why it’s the best time to buy health insurance
Stepping into your 20s and beginning your professional career is an exciting chapter in life. You focus on planning a future to build a quality life. In doing so, it’s also essential to understand ways of protecting it. Buying health insurance for adults during this period is the smartest and most rewarding decision. You get benefits like lower premiums and multiple coverage options, allowing you to invest in your health and future well-being.
Key Highlights
- Health plans for young adults are processed faster when you’re young and healthy, with minimal paperwork and quicker underwriting.
- Buying low-cost health insurance for adults ensures you pay minimal premiums as you’re considered low-risk. It can help you save money over time.
- Health insurance premiums qualify for tax deduction, which can reduce your taxable income and result in long-term savings.
- Many insurers waive pre-medical tests for applicants under 30. It can make the entire process smoother and stress-free.
- Young adults have access to a broader range of insurance plans that offer better features and flexibility to suit different budgets.
Key advantages of health insurance for young adults under 26
The following are the smart reasons to invest in medical insurance for adults.
- Quick policy approval
Insurers process your application faster when you’re young and healthy. There are fewer risk factors to evaluate, which means minimal paperwork, no pre-medical check-ups and quicker underwriting.
- Tax benefits
Health insurance premiums are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. When you buy good health insurance for young adults, you can start claiming these benefits sooner and reduce your taxable income every year. This adds significant savings over time and makes your policy a smart financial tool.
- Lower premiums
Insurance companies calculate premiums for health plans based on factors like age and health. A fit person in their 20s can buy health insurance for adults at low premiums compared to those in their 40s with health risks.
- Low rejection rate
Insurance providers view young adults in their 20s as favourable candidates. They are less likely to suffer from critical illnesses and require hospitalization. So, their policy applications face fewer rejections.
- Coverage for pre-existing conditions
Most health plans for young adults cover pre-existing conditions after a waiting period. When you buy health insurance early, it helps cover medical expenses that may arise later. It also allows you to serve the waiting period when you’re less likely to require hospitalization.
Many insurance companies offer a cumulative bonus, an annual increase in sum insured for each year you don’t file a claim. Buying health insurance for young adults under 26 gives you more claim-free years to build the bonus amount. Over time, it may provide you with a larger coverage amount at no extra cost.
- Range of insurance options
Young adults in their 20s enjoy more flexibility in choosing from various health insurance plans. Since they are less risky to insure, providers offer more coverage options and additional features to them.
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How to choose the best health insurance in your 20s?
Choosing the right health insurance in your 20s can help build a safety net (finances and health) and protect your future. The following are some of the key factors to consider.
Medical emergencies can arrive at your doorstep at any age and put pressure on your wallet. That’s why it’s always recommended to opt for an ample sum insured when buying health insurance for young adults. For most individuals under 30, a sum insured of Rs. 5 lakh is typically sufficient. As you move into your 30s and approach 40, increasing your coverage to Rs. 10 lakh is advisable. By the time you’re in your 50s or early 60s, a health insurance cover of Rs. 15–20 lakh is recommended to adequately manage rising medical costs and age-related health risks.
- No sub-limits or co-payments
Health plans for young adults without sub-limits or co-payments offer full coverage for medical expenses without capping costs like room rent, doctor fees, or treatments. This ensures maximum financial protection and reduces the burden during a medical emergency.
- Lower PED waiting period
A lower PED (Pre-Existing Disease) waiting period in health insurance means your existing health conditions are covered sooner. This reduces the time you need to wait before claiming related treatments.
- Pre and post-hospitalization expenses coverage
Pre and post-hospitalization include expenses related to prescriptions, treatments, scans, medicines and follow-ups. Choosing a health plan with its coverage guarantees financial support throughout medical treatment.
The CSR reflects the insurer’s reliability in settling claims raised by the policyholders. Opting for one with a high CSR offers quick claim processing without hassles.
Buying medical insurance for adults in your 20s is a smart and cost-effective decision to build a base for a secure future. It gives you flexibility to choose from multiple options, bypass pre-policy tests and get additional benefits. If you haven’t already, secure your health today and enjoy peace of mind in any medical emergency.
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