Why You Should Invest In Health Insurance Early.
There is a common dilemma among people about the right age to buy a health insurance policy. However, there’s no right age to buy one. But, if one buys health insurance policy at an early age, one will have to pay less for the policy. Premiums for a health policy increase with one’s age; that’s because the associated risk increases. Premiums for health plans are determined by the age, medical history, city of residence, etc. of the insured. So, if you buy a health plan early it will help you save on the premiums you will pay.
Reduced Premium Rates: An insurance company will decide the premium quote of a Health Insurance cover only after assessing the level of risk that it will be undertaking by providing the policy to a particular policy buyer. When you are young, the chances of you requiring expensive medical treatments are much lower.
Thus, Health Insurance providers usually offer reduced premium quotes to policy buyers in their 20s. Given that you can never be sure of when ill health will strike, it is smart to purchase a Health Insurance policy in your 20s, without having to pay too much for the cover.
Fewer Chance of Rejection: At a young age, you have good health and medical underwriting would be in your favor that helps you to get the policy easily. When you get a policy after medical underwriting, there is no possibility to get your health claim rejected on the ground of adverse health condition. As your age advances, there are chances to develop medical complications and in case of serious illnesses, the insurance company might reject your policy. It is thus wise to buy a health plan when you are young that lowers the probability of rejection.
Income tax benefit : Most working professionals pay income tax. The premium amount paid for health insurance is eligible for income tax benefit as per section 80D of the IT Act. By investing in health insurance, you can take advantage of the tax benefit offered to you. It is not a good idea to invest in health insurance for the sole purpose of tax relief. The tax relief available here is an extra benefit in addition to all the above mentioned benefits of taking a health insurance policy at a young age.