For a young person in his or her early 20’s, getting a health insurance plan is the last thing on the priority list. Unlike the West, where there is a lot of awareness about the need for medical insurance, in India, most people are yet to come to terms with the benefits and financial security that a health scheme offers. In fact, Prime Minister Narendra Modi’s policy of insurance-led community engagement stems on the basic philosophy of providing coverage to all Indians.

Most young people procure a health insurance scheme only when they start working. Corporate companies offer health insurance to their employees at an affordable premium. However, corporate health does not offer comprehensive cover, which is why taking up an individual health insurance plan is such a necessity.

Besides being oblivious about benefits of health cover, majority of youth feels that health insurance product is designed for middle age persons with families, senior citizen and critically ill individuals. In reality, this assumption is far from true. People only start relating with the importance of health insurance in mid-30s and 40s or when they are faced with a medical emergency and regret not taking a comprehensive health plan early on in life. This is because taking a health insurance at the start of a career (let’s assume 24 years) has many benefits such as –

You pay less premium amount

The biggest deterrent why most people hesitate taking a health insurance plan is that the premium amount they pay each year seems like an unnecessary expenditure. It is not only naïve to put a price tag on one’s health, but it is also important to view this expense as an investment in your health. Lifestyle diseases such as hypertension and diabetes are on the rise affecting more and more younger people. While the average age of the onset of diabetes is believed to be 45 years, doctors and physicians across various hospitals in the country have reported that a lot of people in 20’s and 30s are being diagnosed with Type II diabetes. It is to be noted that diabetes is the underlying cause for some ailments like kidney disease, heart-related disorder, and even stroke.
To give perspective, taking a health insurance plan at a younger age means that you will be required to pay lower premium rate. The math is simple; greater the age, higher will be the premium.

You get a health cover, even when you travel

It’s a common thing for working individuals in their early 20’s to plan holiday and trips with friends and colleagues. Although it is highly unlikely that a medical emergency will strike, it doesn’t hurt to be prepared for one. So, whether you are on a weekend getaway trip to Manali, Shimla or Lonavala or a holiday of the year to Goa, your medical insurance plan will come in handy. This is because more health plans such as HDFC ERGO medical insurance have tie-ups with a range of hospitals and multi-specialty clinics across India. All you have to do in go to a partner hospital and receive cashless treatment. In case you are visiting a non-partner hospital, you can produce the bills so as to get 100% reimbursement.

You do not have to worry about waiting period

As per medical insurance terminology, waiting period is defined as the duration of time (which is usually 3-4 years, depending upon the policy), during which you cannot make any health claims for certain diseases. Buying, the health insurance at a younger age means, that by the time you need the assistance of the policy you have already exhausted the waiting period. This point stands valid with the statement- that you buy a health insurance when you don’t need one.

You get a cover on wide range of procedures

Cashless hospitalizations, reimbursement on medical bills are some of the standard benefits of a comprehensive health insurance plan. In addition to that, the medical plan also covers an array of day care procedures like a minor eye surgery, skin tag removal, sinus operation, etc. that do not require hospitalization.

You can avail tax benefits

Taking a health insurance plan at a young age means that you will start enjoying tax benefits. Under the section 80D of the Income-tax Act, an individual who has an ongoing health insurance policy can avail tax benefits.

In conclusion

Learning the art of financial planning early on in life can prove to be highly beneficial in the long run. For a young person who has recently joined the workforce, the start can be by taking up an optimum health plan. Medical treatment is expensive and often come unannounced. Therefore, to secure your finances and saving, it is wise to take a health insurance cover in the early 20’s of life.

(The article is authored by Utkarsh Sahu, a digital strategist with over three years of writing experience for business magazines)

(Image: Thinkstock)