Buying Health Insurance Early in Your Life
Buying Health Insurance: Living in Delhi, Yashis leading a peaceful life with his wife Puja. Recently, his father has come to stay with them after his retirement. Yash is a highly qualified software engineer who works in a leading IT firm. Though, till now there are no significant medical expenses incurred by him, Yash is confident that in case if they arise, his corporate health cover would be sufficient.
Last Sunday, Yash visited his financial consultant to plan his long-term investment portfolio. During the discussion, the financial consultant suggested him to go for a comprehensive health insurance policy. However, Yash was not convinced to buy a plan as he was confident that his corporate health insurance is sufficient to cover medical expenses. He felt that it was worthless to spend money on a health insurance policy which he might not require.
There are many people like Yash who consider health insurance policies as wasteful expenditure. However, one should think of long-term benefits and consider buying health insurance early in life because of the following benefits:
No one is invulnerable
Due to the increasing dependency on technology and sedentary lifestyle in the past few years, youngsters are attacked by various health hazards.
In general, the reality is that if you are young and not suffering from any significant health issues, you are likely to consider yourself invulnerable to diseases and health insurance as wastage of money. However, the reality is:
- Obesity is one of the primary reasons behind numerous ailments like diabetes, hypertension, heart issues, etc. which are not age-specific
- Inactive lifestyle along with no exercise has given rise to the early onset of illnesses like high blood pressure, diabetes, etc.
- Critical ailments like cancer, chronic heart, and kidney issue can affect anyone at any point in time
- Seasonal diseases like dengue, malaria, chikungunya, etc. can strike anyone, irrespective of age
Employer health insurance is not sufficient
Most people avoid buying individual health insurance as they think that their corporate health insurance is enough to provide them coverage.
However, corporate health insurance is not sufficient to offer the complete coverage because of the following reasons:
- It is not necessary that a corporate health policy also covers your dependent parents and kids
- As the coverage provided by group health insurance is limited, it may not be sufficient to deal with rising medical expenses
- Most of the group, health insurance policies, come with additional clauses, like co-payments and deductibles. It means, if medical costs exceed the limit, the same has to be paid by the employer out of his pocket
- If you change your job, it is not necessary that the new employer will also offer health coverage. It means, as soon as you leave your present job, you are no longer covered under the current health plan
- In most of the cases, corporate health insurance is not offered to retirees
Though corporate health insurance may look attractive, it doesn’t provide a long-term solution.
Make use of waiting period
Most of the health insurance plans don’t offer coverage with an immediate effect. It is only after a period has passed that the policyholder is liable to get the coverage. As already mentioned above, today youngsters are no exception when it comes to being diagnosed with chronic diseases. Therefore, it is good to buy health insurance early in your life so that when the medical ailment arises, you have already passed the waiting period. Notably, the general waiting period is 30 days, and in the case of pre-existing and critical illnesses, it varies between 1-4 years. In short, buy health insurance when you don’t need it so that you can use it when you need it.
Youngsters quickly get a comprehensive coverage
In initial life stages, most insurers offer coverage without medical tests. As the age advances, these medical tests become mandatory before the policy issuance. Though health insurance is being provided to middle-aged people and senior citizens also, premium rates are high as compared to youngsters. Also, the insurer can reject the policy application due to factors like pre-existing ailments and general health factors related to age. So, it makes sense to buy health insurance when you are young and healthy. In short, “the early bird catches the worm.”
Health insurance plans cover more than just hospitalization
Most people assume that their health insurance policies include only serious hospitalization expenses. However, contrary to the common belief, many health insurance policies foot the bill for associated medical expenditures also.
|Little-Known Benefits of Health Insurance Policy|
|Daily hospital cash allowance|
|Treatment took at home|
|Expenses related to organ donors|
Most health insurance policies cover maternity after a waiting period of 3 or 4 years. Thus, proper planning is required to make the optimum use of the benefit. Most importantly, you need to look for critical points, like waiting period for maternity expenses, sub-limit and maternity coverage offered. After the birth of a baby, you can also cover your child under the health insurance policy. For instance, HDFC ERGO’s health insurance plan “Health Suraksha Gold” covers maternity expenses after a waiting period of 4 years along with the newly born baby cover.
Health cover is available even if you are traveling
Most of us have to go extensively for work and leisure. A health insurance policy that covers emergency medical evacuation along with making the comprehensive medical facilities available around the country makes more sense.
Avail tax benefits
Although getting tax benefits should never be the reason to buy an insurance policy. It is an added benefit which you can get with the plan. The premium paid on health insurance is eligible to get tax benefits under Section 80D of the Income Tax Act.
It is health that is the real wealth, and not pieces of gold and silver: Mahatma Gandhi
A medical emergency can strike anyone at any time. So next time before ignoring health insurance policy. Make sure to weigh all the future benefits that you can avail by buying Medi-claim policy early in your life.