The best time to invest in an asset is when it is bound to grow with time, and not when it is shrinking in value. Therefore, the best time to purchase a health insurance for you was yesterday. You should invest in your health while you are still young and healthy. Remember the return on an investment in health insurance will be seen over your entire life and not just the first year you get the cover for. Here are 10 reasons to convince you to buy insurance right away:
Premium is cheaper
The premium amount that an insurer charges to cover your health expenses depends on your current health status and age. Further, the younger you are, more are the number of premiums the insurer expects you to pay over the duration of your life – and therefore can ask for a lower premium per year compared to someone older. This means you would be paying smaller premiums not just at the start of the policy but throughout the duration of your policy with the insurer.
Waiting period is shorter
Many health insurance policies today have a waiting period at the start of the policy. Only accidents are covered during this period and the actual health cover only kicks in at the end of this waiting period. Further, if you have any pre-existing conditions – they are typically only covered after a waiting period. This waiting period varies from illness to illness and policy to policy. When you start early, the overall waiting period is generally shorter. On top of that, as a health individual you will not have to worry about waiting period for pre-existing conditions at all. You will get the full coverage as soon as the generic waiting period is completed.
No age related upper limit to deal with
Most of the health insurance products have an upper limit on the entry age. This means your options get limited as you grow older. Further, most health insurance schemes provide coverage without conducting a medical examination if the insured is under the age of 40 years – this changes from policy to policy, but to get the most comprehensive coverage at a reasonable price you should purchase health insurance at a young age.
Greater Coverage
As a young person, you will get a greater coverage at the same price when compared to an older person. The reason is simple: the older you are the higher is the chance that you will need to spend on healthcare. This includes expense on day care procedures, treatment for vector borne diseases, other OPD expenses and maternity benefits.
Accumulating no claim bonus
Most insurers provide a no claim bonus for every consecutive year you do not claim your insurance. This bonus varies from 5% to 100% of your sum assured. As a young person, there is little chance that you would file a claim, and therefore you will be able to accumulate a large no claim bonus for use when you truly need the assistance. On the other hand, if you decide to take out an insurance policy only later in life, you may not get the advantage of this bonus – and will have to pay a higher premium for similar coverage.
Several options to choose from
As a young one, you have many more options available when choosing an insurance provider. You can pick and choose the add-on covers that best match your health profile. This becomes more and more difficult as you age as some benefits have a low entry age and others will be refused by the insurer based on any medical history that you may already have.
You are comparatively healthier
As we have pointed out earlier, the best time to buy your health insurance is when you are comparatively healthy. This way you avoid any inconvenience arising from a waiting period, and have to pay a lower premium as you are at low risk when it comes to medical expenditure. With a good policy, you will also get free annual check-ups to proactively work towards keeping yourself healthy and managing your health better.
Lower chances of rejection
When you are younger, the chances of an insurance company rejecting your proposal are almost nil. The chance goes higher with your age and as your medical history builds up. Remember that insurers do not want to cover people who are bound to make a claim before they have paid up enough premiums to justify the claim from a financial standpoint for the insurer.
Life-long renewal
Most policies today offer coverage till the age of 65, there are a few that may go up to 70 years of age. But most senior citizens either have to opt for a specialized senior citizen policy or go without any health coverage. An easy way to avoid this eventuality is to invest in health insurance early – this will allow you to get lifelong renewal from most of the insurers. The extended coverage can prove a boon in the older age, allowing you to enjoy the best available medical facilities when you need them the most.
Absence of pre existing conditions:
As noted earlier, most health insurance policies impose a waiting period before they cover pre-existing conditions. In some cases, the insurer may exclude certain pre-existing conditions from coverage completely. Therefore, it makes sense to get a health cover before you develop any illnesses. This allows for a more comprehensive coverage, and access to better healthcare when needed.
Bursting myths about health insurance
There are many myths about health insurance that you should not fall for when buying health insurance. The most dangerous among them is that you do not need a health insurance if you are young and health. You may be healthy now, but illnesses do not come with a forewarning. You must be prepared for the worst at all times. Another myth is that the health coverage starts from the day you buy an insurance policy and therefore you can buy it when you are more likely to contact an illness. This is untrue as most policies have a built-in waiting period. It follows that the best time to buy insurance is when you are healthy and the waiting period has no impact on your medical expenses. A related myth is that if you have a medical cover, all your healthcare expenses will be paid for by the insurer. This is untrue as most policies have sub-limits on expenses that are covered under different heads. These limits are lower the later you purchase a policy.
Lastly, do not buy the cheapest policy. It may not provide you with a comprehensive coverage. Remember that the cost or premium that you will have to pay is just one factor among many that help you decide on the right policy. The most important thing is that your anticipated health expenses are covered and you or your family does not have to run from pillar to post putting together the finances when an emergency strikes.
Get a health insurance policy while you are young and enjoy a lifetime of benefits.
