7 Benefits of buying a health insurance policy at young age

Health insurance is an investment into your future and as with any form of investment, early is better.

Health insurance is an investment into your future and as with any form of investment, early is better. Investing in health insurance at a young age can have far-reaching impacts later on in your life and here, we will discuss a few advantages that will matter when times are tough.

1. Lower Premiums

Insurance works on the principle of risk assessment. When you are younger and healthier, you can avail a higher ‘Sum Insured’  at a lower premium because the chances of you falling sick and claiming high medical costs is low. You are a ‘low-risk’ client for the insurer and hence, they charge less to provide you with better coverage.

2. Waiting Period

The waiting periods for certain diseases like cataract, heart disease, diabetes, etc., can be anywhere from 2-4 years. If you invest early, you would have crossed the waiting period by the time you face a tough medical condition, if at all.

3. Wider Coverage

At a young age you have the option of selecting from a wide range of products and gaining wider coverage too. With age, the options reduce as insurers narrow the options because of increased health risks. This means that if you buy early, you get more options, wider coverage, better deals, and lower prices. But with age, the insurers narrow the cover they provide since you become vulnerable to more illnesses.

4. Bonus

Most insurance companies provide no-claims bonus for every claim-free year. This bonus can even accumulate to 100% of your sum insured. When you are young, you can go through a number of claim-free years, keep adding your bonus, and increase your cover substantially by the time you need it. 

5. Low Rejection

Insurance companies have the right to reject you if they assess that you are a high-risk individual. Or, they would charge extremely high premium rates on acceptance. When you are young, you are healthy and the chances of being rejected is almost zero. It is better to invest when you have the advantage of age and health with you.

6. Customisation 

If you buy a policy early, you can customise the plans with time and your needs at a lower cost. For example: Suppose you have a history of diabetes in your family. You can buy a basic plan at a lower cost (say at the age of 30) and keep renewing it. You can later add top-ups to those plans if needed and customise them to suit your specific needs as you grow older.

7. Financial Planning

Health Insurance helps you avail tax benefits. Investing early means that you would be saving taxes on a long-term basis while securing your future for a later time as well. Essentially, a young investor stands to gain most out of a policy in terms of protection and savings and you must look to secure yourself as soon as possible.

OneAssure is a distribution platform that helps you make right decisions on matters where health and finances converge. Visit oneassure.in to know more about your health insurance choices.

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