As a young professional, it’s easy to overlook health insurance while navigating new jobs, financial independence, and life goals. After all, with youth on your side, medical concerns might seem like a distant worry.
However, starting early with a health insurance plan can be one of your smartest financial decisions. This article explores why investing in health insurance early in your career is both wise and forward-thinking.
Benefits of Buying Health Insurance at an Early Age
Starting early with health insurance isn’t just a smart financial move- it sets the foundation for long-term security and peace of mind. Here are some compelling reasons why buying health insurance at a young age can benefit you in the long run.
Lower Premiums
One key reason to purchase health insurance early in life is the significantly lower premium cost. Premiums are calculated based on risk assessment, and young individuals are generally considered low-risk due to their better health and lower chances of filing a claim.
As you age, the likelihood of developing medical issues increases, leading insurers to charge higher premiums. If you purchase a policy in your early 20s or 30s, you’ll likely pay significantly lower premiums than someone who waits until their 40s.
You can use an online health insurance premium calculator to compare rates across age groups and see how much you can save by starting early.
Easier Policy Approval
Securing health insurance is much simpler when you’re young and healthy. Most insurers do not require extensive medical checkups at this stage, and the underwriting process is more straightforward.
Your application will likely be approved without exclusions, higher premiums, or additional terms. If you delay buying insurance until later in life or after a diagnosis, you may face difficulties in getting your policy approved or may only qualify for limited coverage.
Wider Coverage Options
When you are young, you can qualify for comprehensive policies offering broader coverage, including maternity benefits, outpatient care, mental health support, wellness programs, and critical illness riders.
This comprehensive coverage may not be as readily available or may come with additional costs or waiting periods if you apply later, when health concerns have already surfaced.
Shorter Waiting Periods
Most health insurance policies have waiting periods for specific conditions, such as maternity benefits, dental procedures, or treatments for pre-existing illnesses. These waiting periods can range from a few months to a few years.
If you purchase a policy early in life, you are more likely to complete these waiting periods well before you might need to use the coverage. This is particularly advantageous for services like maternity benefits, which often have a 2–4 year waiting period.
Better Financial Planning
Health insurance purchased early on becomes integral to a young professional’s financial planning journey. It allows you to allocate funds more efficiently, knowing that unexpected medical expenses are already accounted for.
This means you won’t need to invest your savings to manage healthcare costs. Over time, the money saved from avoiding large out-of-pocket expenses during health emergencies can be redirected towards other financial goals, such as buying a house or starting a business.
Tax Benefits from Day One
You can avail yourself of health insurance tax benefits under Section 80D of the Income Tax Act; premiums paid towards health insurance are eligible for tax deductions. When you start paying for your policy early in life, you can immediately avail yourself of this benefit, even in your first job.
Over the years, these deductions add up, allowing you to save more on taxes while enjoying health insurance protection. Additionally, purchasing policies for your parents or other family members can further increase your tax deductions.
No Claim Bonus Accumulation
Health insurers often reward policyholders who do not make any claims during a policy year by offering a No Claim Bonus (NCB), which typically increases the sum insured without increasing the premium.
Starting young and maintaining good health for several years allows you to accumulate NCB year after year, significantly enhancing your coverage. For instance, you may start with a coverage of Rs 5 lakhs, and after 5 claim-free years, the coverage could grow to Rs 7.5 lakhs.
Coverage for Lifestyle-Related Risks
Today’s fast-paced lifestyle often involves poor dietary choices, erratic sleep patterns, high stress levels, and limited physical activity- all of which can contribute to chronic conditions even in your 20s and 30s.
Buying health insurance early helps you stay protected before such issues develop and get classified as pre-existing conditions. If you wait until a health problem is diagnosed, insurers may exclude it from your coverage or charge a much higher premium..
Access to Preventive Care and Wellness Benefits
Health insurance gives you access to various preventive care services and wellness benefits, such as annual health check-ups, vaccination cover, fitness programs, and discounts on diagnostic tests—all to help you stay healthy and detect potential issues early.
These benefits are especially valuable for young professionals who may not prioritise regular health check-ups due to busy schedules or budget constraints. By taking advantage of these offerings early on, you can build better health habits and reduce the likelihood of serious illnesses.
Lifelong Renewability
Many modern health insurance plans offer lifelong renewability, provided the policy is renewed without a break. Starting early ensures that you remain covered consistently and maintain a clean insurance record.
This long-term association with your insurer helps you retain benefits like No Claim Bonus, continued access to coverage, and uninterrupted protection throughout your life. It also reduces the risk of claim rejections or policy discontinuation at an age when insurance is most critical.
Tips for Choosing the Right Health Plan for Millennials
Here are some useful tips to help you choose the right health insurance plan suitable for young professionals:
- Evaluate Your Health Needs and Lifestyle: Start by assessing your current health status, lifestyle habits, and any hereditary risks. This will help you choose a plan that aligns with your future medical requirements.
- Choose Adequate Sum Insured: Select a coverage amount that can comfortably handle inflation-adjusted medical expenses over the years, especially if you live in a metro city with high healthcare costs.
- Opt for a Plan with Cashless Network Hospitals: Ensure the insurer offers cashless treatment in a wide network of reputed hospitals, especially those close to your workplace.
- Compare Premiums and Benefits: Instead of going with the cheapest premium, compare plans based on overall benefits, room rent limits, co-pay clauses, and additional features.
- Consider Add-ons or Riders: If planning ahead for future needs, millennials should explore useful riders like OPD cover, critical illness protection, or maternity cover.
- Check Waiting Periods and Coverage Exclusions: Look for plans with shorter waiting periods for pre-existing conditions and minimal exclusions so you can access coverage when needed.
- Look for Wellness and Preventive Care Features: Plans offering annual health check-ups, fitness incentives, or mental health support help promote long-term well-being, not just emergency care.
- Prioritise Transparency and Digital Convenience: Choose an insurer with user-friendly mobile apps, online claim tracking, and clear policy terms to simplify your healthcare journey.
- Consider Family Floater Options for Future Planning: Even if you’re buying individual coverage now, look for flexibility to add your spouse or child later under a family floater without hassle.
- Review the Insurer’s Claim Settlement Ratio: A high claim settlement ratio shows the insurer’s reliability and efficiency in handling claims, which is crucial during medical emergencies.
Buying health insurance early may not seem urgent for young professionals, but it should be. With rising healthcare costs and the unpredictability of medical emergencies, securing a health policy at a young age offers financial protection and peace of mind.
Beyond lower premiums, early investment opens the door to better coverage, uninterrupted care, and valuable wellness benefits. By taking this step now, you’re safeguarding your health and laying a strong foundation for long-term financial stability.
Follow this link to join our WhatsApp group: Join Now
Be Part of Quality Journalism |
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast. |
| ACT NOW |
| MONTHLY | Rs 100 |  |
| YEARLY | Rs 1000 | |
| LIFETIME | Rs 10000 | |
