We are able to never make certain of what our future holds. Insurance acts to shield us against events and uncertainties which are mostly unexpected. Medical health insurance is one such essential component inherent to our health and financial well-being. Be it an accident or a sudden illness, having a medical health insurance cover will make sure that you might be financially equipped to repay the bills on hospitalisation and subsequent treatment.
Let’s understand why it’s necessary to purchase a comprehensive medical health insurance plan early on in life:
Why buy medical health insurance at a young age?
Early enrolment in medical health insurance plans offers many benefits. One is more prone to remain at the height of health when you’re young. Hence, the best time to buy a medical health insurance policy is when you’re at the height of your health and your internal and external body parts are in fine condition.
Low premium: Medical health insurance premiums are surprisingly inexpensive if bought early in life. It’s because health insurers charge low for young customers citing the low likelihood of them falling sick. Premium charges are more for old people or those that have had a protracted history of critical illnesses, thus, explaining why it is vital to allocate an element of our earnings to purchasing medical health insurance early in life to profit from high cover at low premium charges.
Waiting period: The waiting period of a medical health insurance policy signifies the variety of days before which the policy advantages come into effect. Which means before the waiting period ends, you can not make claims or avail the advantages of a medical health insurance plan. Some plans have a 15-day initial waiting period, some have as much as 30 days. Also, the pre-existing waiting period ranges from one to 4 years. Since a younger person is usually freed from any severe medical conditions, they’ll easily get through the waiting period. Alternatively, as people age, they’ve an increased likelihood of developing health problems. In consequence, if an individual purchases medical health insurance at an older age, they could must make a claim before the waiting period is over and subsequently, have their claim denied in such cases.
Tax profit: The premiums paid on medical health insurance plans are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. What’s more is which you can also claim deductions on the medical health insurance premiums paid to cover your parents, spouse and youngsters. Although the identical profit is obtainable when one opts for the medical health insurance policy of their later years, purchasing it early leads to superior net tax savings over the course of 1’s profession.
Lifestyle changes: High adherence to a disciplined lifestyle is now passe. What’s more concerning is that health illnesses aren’t any longer limited to minor problems but often have worsened into critical disorders becoming pervasive across all ages group. Securing health with a comprehensive medical health insurance plan ensures each health and financial security in the long term.
High inflation: Besides the rise in prices of certain essential and luxury items, inflation has also led to increasing treatment expenses. On this scenario, it’s essential to have something which you can hold on to for paying your medical expenses. This explains why it’s essential to buy a medical health insurance plan while there continues to be time.
Financial coverage: No matter how sound your financial statement is, getting treated for a significant disease or disorder could cause a significant dent in your savings.
An entire healthcare insurance plan with adequate coverage can cover the expenses akin to doctor’s consultation fees, prescribed diagnostic tests, pharmacy, hospitalisation, ambulance, and post-hospitalisation too without requiring you to spend your hard-earned money.
To sum up, medical health insurance is not any longer an option but a necessity today. Thus, the necessity to avail of the best medical health insurance at a young age can’t be negated. It’s because an adequate medical health insurance cover gives lifetime access to high-quality healthcare, gives you much-needed peace of mind and keeps you and your loved ones clear of the financial burden of life.
(The author is Managing Director and Chief Executive Officer, ManipalCigna Health Insurance Company Limited)