Despite the increase in life expectancy in India, many people face health problems due to increasing air pollution, changing lifestyles, and food adulteration.
Diseases are affecting people of all ages, not just the elderly. As a result, hospital costs are rising, leading many to consider health insurance to cover these expenses.
The premium for health insurance depends on the policyholder’s age. The premium is lower if the policy is taken at a younger age when health problems are less prevalent.
For instance, a 25-year-old can get a Rs. 5 lakh insurance policy for a premium of around Rs. 5,500 to Rs. 6,000, while a 35-year-old will pay around Rs. 7,000.
The premium increases with age, with a 60-year-old paying up to Rs. 21,000. It is best to get insurance at a young age to benefit from lower premiums.
Insurance companies offer a ‘No Claim – Bonus’ for policyholders who have not made any claims in the previous year.
This bonus increases your total coverage and can range from 5 to 100% of the sum insured. This bonus will likely be available for policies taken at a young age due to the lower chances of claims.
Health insurance policies have a waiting period for some diseases, typically 30-90 days, during which no claims can be made. Ailments like cataracts, knee replacements, and arthritis often have waiting periods.
Buying health insurance at a young age allows you to easily pass the waiting period without worrying about potential medical emergencies.
Taking out a health insurance policy at a young age can also provide tax benefits, with exemptions up to Rs. 25,000 under Section 80D of the Income Tax Act. Additionally, there’s no need for medical tests when applying for health insurance at a young age.
Policyholders over 45 may need to undergo medical tests, and the premium is decided based on the medical examination report.
Insurance companies are less likely to reject policies taken at an older age, but there may be fewer complications if taken at a younger age.
Finally, taking out a policy early on allows for more coverage at a lower cost. This coverage includes hospitalization, daycare, pre- and post-hospitalization, OPD expenses, and more. Individual health insurance plans can be upgraded to include riders, increasing policy coverage.