The fast-paced life and contemporary lifestyles have necessitated health care more than before. Today, ensuring your health is a necessity and not a luxury. While keeping that in mind is essential, it is equally important to understand the appropriate time to buy health insurance.
There are various insurance types like medical insurance for senior citizens , individual and family health insurance plans, and many other policies serving different customer requirements. Depending on your need, the right kind of policy will assure coverage of your health expenses during hospitalisation and bear other medical emergencies.
When should you buy a policy?
You might have questions about when to invest in a health insurance policy. Well, right away! Yes, that’s because if you haven’t yet bought any sort of mediclaim policy, it is better to buy one at the earliest. The younger you are, the better, as you can access various benefits tagged with such policies within affordable premiums. Availing of a healthcare plan early in life can help you save money. Confused? Here’s how it works.
The older you get, the pricier your health insurance policy will be. That’s because when young, you are more likely to enjoy the peak of good health, while as you age, your health may grow suspectable to health conditions and illnesses. Health insurance at a younger age can provide you with the following advantages.
– Offer lower premiums
The premium of health insurance policies is designed to increase with age as you are more at risk of falling ill. Hence, if you are seeking insurance at a lower cost, now is the time to invest in a health insurance plan.
– To have financial security
Buying a health insurance policy means your medical expenses, including hospitalisation, doctor’s consultation bills, medicines, etc., can all be taken care of by the insurance agency, thus saving money for you both in the short and long run.
– Lead a stress-free, healthier life
You may be enjoying excellent health conditions in your younger years. Annual health check-ups can be a preventive step toward many possible illnesses in the future. Such checkups may cost you much more without a cover. Hence, getting a policy at a young age can come in handy to lead stress and disease-free life.
– The waiting period doesn’t affect you
Every insurance policy comes with a 30-day waiting period before which a policyholder cannot raise claims other than for hospitalisation caused by accidents. With the assumption that a younger individual is likely to be free from any such grave health condition, the need for availing of benefits right after purchasing a health insurance plan is expected to be low. One can easily pass the waiting period without raising any claims. However, older individuals are at a higher risk of being exposed to health conditions and might need to raise a claim before the waiting period is over. In all probability, such a claim can result in a rejection.
- To escape from medical tests
Purchasing an insurance cover in your old age will require you to undergo a series of medical tests before you can avail of the policy benefits. On the other hand, investing in a policy at a younger age may not need you to undergo extensive medical tests.
- Avail cumulative bonus
Younger policyholders are likelier to stay fit and receive a cumulative bonus for a no-claim year. It can lead to the accumulation of an increased cumulative bonus and thereby an increase in the sum insured for your plan. So you can have more coverage for your medical conditions. Some insurance providers offer additional benefits for accumulating greater cumulative bonuses.
Getting health insurance plans for family on time can also provide you with tax benefits. In India, if you pay a premium for a health insurance policy, you can avail of income tax deductions under Section 80D of the Income Tax Act, 1961. Currently, the tax deductions offered are as follows:
– In the case of spouse and unmarried children, for self and family, you can avail of Rs. 25,000 deductions for self and family.
– For self and family and parents below 60 years, the deduction is Rs. 25,000 each for parents and self, respectively.
– Deduction that you can avail of for self and family where the eldest member is below 60 years and parents are above 60 years is Rs. 25,000 for self and Rs. 50,000 for parents.
– In case the eldest family member and parents are above 60 years of age, your tax deduction amount for a health insurance plan for family and self will be Rs. 50,000 for each.
Getting your health insurance policy early in life can save you some taxes and fetch you great benefits.