Phot Credit: TV9 Bharatvansh
During inflation, one thing that troubles everyone the most is the cost of medical treatment. Medical expenses are increasing annually at a rate of 14-15%, surpassing even income growth rates. Despite this, many people do not opt for health insurance.
As a result, if someone in the family falls ill, all the savings are exhausted in covering medical expenses.
A major question on people’s minds is when is the right time to buy health insurance — at what age should one get a policy?
According to a report from the National Insurance Academy in December 2023, more than 95% of India’s population of over 1.4 billion people are not covered under any insurance. This highlights the current situation despite numerous efforts by the government and insurance regulator IRDA to increase insurance penetration.
To alleviate the burden of medical expenses, it is crucial to take out a health insurance policy. Experts advise getting health insurance as early as possible. Typically, it’s recommended to get a policy between the ages of 20 to 30, or at most by the age of 32.
Getting health insurance isn’t just necessary; it’s also beneficial in many ways. The sooner you purchase a health insurance policy, the more advantages you can accrue. Let’s explore some of the significant benefits:
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Lower Premiums:
One of the biggest benefits is lower premium rates. Insurance companies consider younger individuals healthier and lower risk, hence charging lower premiums compared to older age groups.
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No Medical Check-ups:
Buying health insurance at a younger age may exempt you from medical check-ups. Serious illnesses are less likely at a younger age, allowing insurance companies to offer this exemption.
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Shorter Waiting Periods:
Health insurance policies often have waiting periods for pre-existing conditions. Buying a policy at a younger age ensures that by the time age-related illnesses might arise, the waiting period for pre-existing conditions will have elapsed.
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No-Claim Bonus:
If you do not make any claims in a year, you receive a no-claim bonus. This bonus can be used to enhance your coverage over time, making it easier to accumulate when you start early.
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Tax Benefits:
Health insurance also offers tax benefits under Section 80D of the Income Tax Act, where you can claim up to Rs. 25,000 per year on premiums paid. Buying health insurance at a younger age allows you to avail of this tax benefit for a longer duration.
In conclusion, the sooner you get health insurance, the more benefits you will enjoy. It’s better not to wait for a health crisis to strike before getting insurance. Health insurance not only protects your health but also safeguards your financial well-being from unforeseen medical expenses.
Published: June 29, 2024, 16:03 IST
