All About Protecting Your Finances – Why You Need To Buy Health Insurance Early on In Life

If the world had to pick the worst year in the past decade, we’d most probably and collectively pick 2020. Riddled with deaths and health crises thanks to a pandemic, 2020 claimed countless lives. In many ways, that fateful year also became a teacher who taught us that we should not take or our loved one’s health, or indeed their lives for granted. It emphasized the importance of investing in health insurance and doing so early on life. So, let’s take a look at the different types of health insurance plans you should get when you are young. But before that let’s find out what health insurance entails.

Why Does Everyone Keep Talking About Health Insurance?

As you age, you may take various investment decisions to grow your wealth. But a single medical condition can drain away all the wealth and savings accumulated over the years. The ever-rising hospital costs, surgeon’s fees, medical procedures, etc., can empty your bank accounts. Health insurance is the only solution that can prevent you from losing your life-long savings.

When you have health insurance , your insurer pays for most of your medical costs, up to an amount called a sum insured. Insurance enables you to concentrate on getting the necessary treatment while the insurer picks up the bill. To provide you this coverage, the insurer charges an annual premium.

Let us now look at the types of health plans you need in your life and the benefits of investing early.

Different Types Of Health Insurance Plans You Must Have And When To Buy Them

While the underlying concept of Health Insurance is essentially the same, health insurance policies can be of different types, designed to fulfil different objectives. Here’s a break-down of the different types of health plans and when you should ideally buy them.

• Individual Health Insurance Plans

As the word individual suggests, such a plan covers only one person. The benefits or sum insured of this policy cannot be transferred to anyone else, including your immediate family members.

• Family Floater Plans

This type of health insurance plan covers 4 to 6 members of the same, immediate family unit under one plan. The covered members must share the sum insured amount between themselves.

• Critical Illness Policy

The cost of treating illnesses like cancer, heart diseases, kidney ailments, etc., tends to be high. With a critical illness policy, you can easily manage the costs of such illnesses, due to the high sum insured.

• Top-Up Plans

If your base policy has a lower sum insured and you want to enhance it, you can go for a top-up health plan. Top-up plans are typically inexpensive and fairly easy to obtain.

• Group Health Plan

If you’re employed with a good company, you may be covered under a group health insurance plan. But you must not rely on it alone as your coverage expires the moment you quit your job.

• Maternity Plans

Maternity plans are available as both, standalone plans and add-on riders. This type of health insurance plan is ideal for couples planning to expand their family in the next 2-4 years.

• Personal Accident Plans

This type of health plan protects you and your loved ones financially if an accident causes injuries or disabilities impacting your ability to financially provide for your family, or worse, leads to your death.

Reasons to Invest in Health Insurance Plans in Your 20s, 30s, and 40s

If we’ve said it once; we’ve said it a thousand times – you must buy health insurance when you are young to reap its benefits when you are old. The trouble is that most people believe that they will need insurance only later on in life – when they are older and more likely to fall ill. While you may not need to encash your insurance policy until you are older, it does not mean you should wait until then to insure your health.

So, let’s look at the many reasons why you should buy insurance in your 20s, 30s and 40s and why your age matters when it comes to buying insurance.

TL; DR Points

Let us now expand on the above points to understand them in a little more detail:

• The Premium Costs

When you’re younger, you are typically healthy and less likely to file health insurance claims . But as you age, your chances of filing claims increase. This is why insurers charge lower premiums when you buy health plans in your 20s, slightly more in 30s, and levy higher charges for insurance in your 40s.

• Lifestyle and Health Conditions

Your 20s is your time to live your best life. But as you age, your responsibilities increase, which may lead to the onset of medical conditions. By your 30s, you may start experiencing stress which can lead to more severe health conditions in your 40s. To cover these costs, you must buy insurance soon.

• Waiting Period

All types of health insurance plans come with a waiting period, during which you cannot file any claims. Buying insurance in your 20s allows you to smoothly ride out the waiting period. But in your late 30s or your early 40s, you may need to file claims, so you must get insured early to ride it out quickly.

• Chances of Filing Claims

As we’ve already established, your chances of filing claims increase as you age. Diseases like diabetes, blood pressure, etc., become common as you age, and getting insurance once you have these illnesses, can be both difficult and expensive. This is why it is best not to wait till your older to buy health plans.

• No Claims Bonus Benefits

With the no claims bonus benefit, insurers increase your sum insured amount by almost 50% without charging higher premiums. But to get this reward you must not file any claims for up to 5 years. You can easily accrue this benefit if you buy insurance as a young, healthy person in your 20s or early 30s.

• Pre-medical Check-up Requirements

One of the greatest advantages of buying health insurance when you are young is that insurers do not ask you to undergo any medical tests, especially if you do not have any history of illnesses. However, if you buy policies later in life, you may need to comply with this requirement from your insurer.

• Rejection Rate for Insurance Applications

Since insurance involves significant compensation amounts, insurers may be picky while considering your application. Your best bet is to buy insurance when you are in your 20s or 30s to enhance your chances of being approved. Once you cross your 40s, insurers may reject your application.

ChooseManipal Cigna Health Insurance For All-Around Medical Coverage

Once you have your health insurance contract in your hands, you can rest assured, knowing that your insurer will come to your rescue when you need medical care. At Manipal Cigna Health Insurance, we understand your varied needs, and that you may require different type of health insurance plans. Whether you need student health insurance plans for your children, or health insurance for young adults, we offer it all. We offer everything from basic healthcare plans to policies covering critical illnesses, maternity costs, specific ailments, and more. Visit our website today to choose from an array of medical insurance plans to fulfil your healthcare needs.

Do The Smart Thing – Get A Manipal Cigna Health Insurance Plan Today.

FAQs

Why should I buy health insurance in my 20s and 30s?

You should buy your health insurance plans in your 20s and 30s for many reasons. Firstly, insurers charge a lower premium when you buy insurance as young person. Also, you can easily ride out the waiting period. Moreover, you can enjoy an enhanced sum insured with the no-claims bonus benefits.

What role does age pay in health insurance investments?

Your age plays a very crucial role when it comes to investing in insurance. While you may be less likely to file claims as a young person, your young age works to your advantage. Insurers see you as a less risky candidate which is why they offer some of the lowest premium rates.

What types of insurance policies or add-on riders should I buy in my 20s or 30s?

In your 20s or 30s, you would typically be in that stage of your life where you may be married or planning to expand your family. If you are a married couple with children, one of you may be taking on the role of the primary breadwinner as the other takes on the responsibility of looking after the young children. As such, some of the policies or riders you should buy during this stage of your life include family floater policies, maternity cover, personal accident cover, and accidental death cover.   

Can I wait till I am in my 30s or 40s to buy a critical illness health insurance cover?

Your late 20s and early 30s is the ideal time to buy a critical illness health plan. By this time in your life, you would be settled in your career, and able to afford the premiums charged against such policies. Plus, you may not need to undergo medical tests. If, however, you choose to postpone this investment until your late 30s or 40s, you may need to undergo medical tests and pay higher premiums.

Can I buy health insurance for my new-born baby?

Insurers in India do not offer specific policies for new-born babies. However, you may add your baby’s name in your existing family floater plan 90 days after your baby’s birth. You may also get coverage for your baby under a maternity health plan.