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7 Reasons To Buy Health Insurance Before You Turn 30
Purchasing health insurance plans ensures that you financially safeguard yourself and your family during medical emergencies. With the funding available, such policies also ensure that you have uninterrupted access to quality healthcare services that can eventually lead to quicker recovery.

However, while purchasing health insurance policies is a definite smart move, you must also know exactly when to avail of these policies. And we recommend that you do it in your 20s. Here’s why -

REASON 1: Expectations of a lower premium

Whenever you apply for a health insurance policy, the insurer requires complete transparency on your medical history and pre-existing conditions. In case there are any medical complications, the provider adds a loading charge to your base premium amount. The loading charge is an amount added to the base premium as a risk mitigation measure against frequent payouts over frequent hospitalisations to treat the existing medical conditions. Thus,  you have a higher premium to pay.

On the other end, when you apply for a health insurance policy in your 20s, the chances are high that you are healthy with no medical complications to increase your premium. So, you get access to top-notch health insurance plans and their buffet of benefits over lower premiums.

REASON 2: Accumulation of No-Claim Bonus

Since you are younger and healthier, there are fewer chances of you filing for claims. This triggers the No-Claim Bonus perk in your health insurance plan that can boost your insured by 50% to 200% (based on the policy that you have chosen).

Thus, with an extensive no-claim period, you end up having access to a higher sum insured and yet don’t need to pay an extra penny towards your premiums.

(Please Note: If you have opted for a No-Claim Bonus shield, even if you make a claim, up to a certain amount, your No-Cliam bonus won’t be affected.)

REASON 3: Coverage for accidents

Let’s admit this - the younger you are, the more the chances of accidents. In case such accidents require hospitalisation, your health insurance plan can kick in, thereby shielding your savings from getting invested in this. Moreover, the coverage for accidents is available from the day of commencement of the policy, sans any waiting period.

REASON 4: Access to preventive care

Health insurance policies also offer coverage for preventive care. This includes screenings and vaccinations that help you stay updated on the health front. In case you acquire any ailment, a health check-up (that is often free once annually, depending on the policy and health insurance provider you have chosen) can help you diagnose it early and conveniently get it treated to the best possible result.

REASON 5: Financial security against medical bills

When in your 20s, your financial stability is still in its developmental stage. On the other side, health scares can appear out of the blue. Under such circumstances, you end up divulging your savings to fund your medical expenses.

On the other hand, with a health insurance policy in place, and the option to pay premiums in EMIs, your savings are shielded in case you require medical treatments/surgeries/procedures.

REASON 6: Tax benefits under Section 80D

Health insurance policies offer you the perk of tax benefits under Section 80D of the Income Tax Act. Under this Section, if you pay for health insurance and preventive health check-ups for yourself, your spouse, and dependent children, you can deduct these costs from your taxable income. These tax deductions have a cap of ₹25,000 (separate ₹5,000 cap for annual health check-ups) to a maximum cap of ₹75,000 (if you pay for yourself/spouse/children and parents who are above 60 years old).

REASON 7: Covering waiting periods

Since you are starting with your health insurance policy in your 20s, when the chances of claims are minimal, you can utilise this period to complete the waiting periods on pre-existing conditions and specific illnesses. In the future, whenever you require it, the coverage will be available to you without the hurdle of waiting periods.

Conclusion

Purchasing health insurance policies in your 20s is always a smart financial and medical move. Considering the medical inflation and the recent scare of a pandemic out of the blue, it is quite evident that health issues may emerge out of nowhere and eat away at your savings substantially. So, instead of losing out on your savings (that could have been partially used for investment purposes), we suggest availing of a health insurance plan with a premium payment mode that best suits your financial stability. Finshots (talk) 11:01, 8 January 2024 (UTC)