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5 Legit Reasons Why You Should Buy Health Insurance When You are Young

16 November 2018 No Comment

There is an old adage that goes that “Health is wealth”. While this is true, there is another fact that healthcare is indeed expensive. When a health scare suddenly creeps up on us, we find that we end up spending a lot of money. But, we are also products of our fast-paced lives. We battle stressful work schedules; we pump our bodies with junk food and expose it to pollution. It is no wonder that people these days are battling more health issues than ever before. The prudent thing to do therefore is to purchase health insurance while you are young.

The relation between age and premium: Almost every health insurance policy charges you a premium based on your current age. When you are young, you rarely have any pre-existing medical conditions, why is why you can avail health insurance worth several lakhs, by paying an annual premium which costs only a few thousands.

Waiting period: Health insurance policies come with a waiting period of about 1-3 months. During this period you cannot make any claims, even in case of a medical emergency. However, if you are young when you buy your policy, you would be able to exhaust this waiting period easily. On the other hand, if you buy the policy after you cross 60 years of age, you may have a longer waiting period, lasting 6 months to a year.

Coverage: Coverage is a very important aspect of your health care policy. Some insurance companies also provide additional benefits such as coverage for day-care procedures, maternity benefits, vector-borne diseases and even OPD expenses. But these provisions are only available if you purchase your policy when you are young. Remember that additional coverage is a great benefit, because as you grow older, the cost of both, health care and medical complications increases.

No claims bonus: You need to think of your health insurance policy as an investment. When you are young, you do not find use of your policy, but there is an upside to this. Most insurance providers offer ‘no claims bonuses’ for every year that you do not use your policy. Purchasing a policy at a young age allows you to avail a cumulative bonus when you renew it annually. Your coverage amount is increased by this accumulated bonus, which proves advantageous when you are older and need to use your policy. A ‘no claims bonus’ can range from anywhere from 5% to 100% of the insured sum, depending upon the insurer.

Personal insurance: While most employers provide health insurance policies, the costs of health care are touching the roof. That is why it is a wise decision to purchase a personal health insurance policy even if you are provided one by your employer. A single, low-insurance policy may not be able to cover all costs. You also run the risk of being uninsured should you lose employment or change your job.

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