Given the rise in health risks, changing lifestyles, and rising costs of healthcare treatment in India, purchasing a health insurance coverage in your early twenties has become essential. Following the COVID-19 pandemic, there was a huge increase in the demand for health insurance in India. According to a survey, retail sales of health insurance policies in India increased by 28.5 percent in the fiscal year 2020-21, compared to 25.9% in the fiscal year 2021-22.
People have become more aware of the importance of having health insurance as a result of the Corona pandemic. However, it is common to notice that many people are unaware of the significance of obtaining health insurance. In their 40s, such people become conscious of it. There are numerous advantages of purchasing an health insurance coverage at a young age. We are listing 5 reasons why you must buy an insurance in early 20s.
The premium will be cheaper
You will be able to take advantage of the lower premium rate if you purchase health insurance when you are 20 years old. A health insurance policy’s premium is determined by the covered members’ age, and it rises with their age as the health risk rises.
Choosing a waiting period
In health insurance, the waiting period is the period during which the insured is unable to make a claim for specified diseases, operations, or pre-existing medical problems. Your waiting time can be anywhere from 2-4 years, depending on the health insurance plan you choose. When you get a health insurance policy when you are between the ages of 20 and 22, the waiting period for your policy will be brief because young people are generally physically and medically well.
No Claim Bonus
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If no claim is lodged during the policy term, most insurers offer a 10% to 50% bonus in the form of additional coverage. By purchasing a health insurance coverage on time, you will be able to begin collecting No Claim Bonus (NCB). This NCB can be used in later years of life when you are more susceptible to ailments and may need to file a claim. However, if you purchase the policy later in life, you will not be able to benefit from the enhanced coverage.
Exemption from taxes
In India, premiums paid for family health and individual health insurance coverage are tax deductible. You can get a tax break on the premium you pay for a health insurance coverage under Section 80D of the Income Tax Act of 1961. Then start paying your premiums early to gain a tax break.
Coverage that is comprehensive
People in their 20s who are looking for health insurance can acquire complete coverage at a low premium rate. When you acquire health insurance when you’re young, you may be confident that you’re physically and medically healthy, with no pre-existing problems.