Several reports on national health expenses have suggested that most of the Indians still pay for medical expenses from their pocket. These expenses are not covered by any government or private insurance scheme. As a result, a massive portion of the population fails to avail of quality healthcare.
Nonetheless, India has come a long way regarding medical technologies. Medical costs are also on a constant rise in recent years. This makes it crucial to buy a health insurance policy at the right time to keep up with these rising costs.
The right time to purchase a health insurance policy
Most individuals believe that if they are healthy currently, they can purchase a health insurance plan during a later stage of their lives. However, this is one of the biggest mistakes one can make.
The right time to buy a health insurance policy is during one’s younger days, preferably mid-twenties. Here are a few advantages individuals can reap upon purchasing a health insurance plan at a young age.
Benefits of buying a health insurance plan at a young age
Purchasing a health insurance plan early provides complete financial security at an early stage of life. Besides, it also brings in the following advantages:
● Cheaper premium amount
Insurance providers determine the premium amount by considering several factors, such as:
Sum insured
Pre-existing medical conditions
Co-payment or voluntary deductible
Add-on covers
Apart from these, the policyholder’s age is another crucial factor that insurance providers consider while determining the premium amount.
An insurance company cannot predict whether someone is at risk of catching a disease. Thus, an individual’s age is the only clue concerning his/her well-being. Often, insurers believe that older policyholders are at a higher risk of getting ill and making frequent claims. Thus, most insurance companies levy a higher premium for senior age group individuals.
● Easier to get past the waiting period
Health insurance policies typically come with a waiting period. It is the timeframe under which policyholders cannot raise a claim, barring accidental hospitalisation.
In most situations, younger individuals are free from serious medical conditions. Thus, the chances of such individuals passing the waiting period without concern are higher than the senior citizens.
· No need for medical inspections
Individuals purchasing a health insurance plan at an older age will have to undergo a series of medical tests before being eligible to obtain it. Following the results of these tests, the insurance company issues the policy coverage.
However, most insurance companies let go of these medical tests when it comes to younger individuals availing of a health insurance plan. This leads to a convenient and fast-track application procedure.
● Increased chances of accumulating NCB
NCB is a form of reward that insurance companies offer to policyholders in the event of a claim-free policy year. The no-claim bonus benefit can be availed by policyholders in two ways, specifically:
Cumulative benefit
Discount on premium
Under cumulative benefit, an insurance provider offers a higher sum insured amount. For instance, suppose a policyholder has a health insurance plan with a sum insured of Rs. 5 lakh. His/her insurer offers a cumulative benefit of 5% for every claim-free year. Thus, after the first claim-free year, he/she would be eligible to receive a sum insured of Rs. 5.25 lakh.
Meanwhile, under the discount on premium, a policyholder can avail of a lower premium of up to 50% for five consecutive claim-free years.
Typically, younger policyholders remain more fit, making them unlikely to make a claim every year. This way, they can accumulate the no-claim bonus on their health insurance policy, bringing in various discounts and perks.
Apart from knowing the perfect time to purchase a health insurance policy, it is also crucial for individuals to choose a plan that offers cumulative benefits. In this regard, one can look at the various health insurance plans offered by Bajaj Finance Limited. To provide extensive financial security against pre-and post-hospitalisation expenses, medical check-ups, ambulance charges and more, Bajaj Finance has partnered with some of the top insurance companies in India. You can choose from a range of health insurance policies including individual and family health insurance policies that covers you adequately.
Evidently, health insurance plans have more to offer when individuals purchase them at a younger age. However, ensure to read the terms and conditions of the policy beforehand to make an informed purchase decision.
