Why medical insurance is essential for the youth

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Young people often refuse to purchase medical insurance pondering that there may be nil or very low probability of falling ailing and hence there isn’t any point in wasting money in paying premiums. Nevertheless, participation of young people in insurance pools could be very necessary for the Health Insurance Industry, as with lower probability of falling ailing, their participation would lower the typical claim ratio and burden on the insurance pool, leading to reduction in premium level.

Furthermore, medical insurance not only provides tax advantages and helps in financial planning, but it surely may additionally be treated as charity because the premium paid could be used partly to settle the hospital bill of one other insured person, thus helping him/her not directly on the time of need.

“Medical insurance has develop into an important part of economic planning, especially for the younger generation as greater than 50 per cent of India’s current population is below the age of 25 and over 65 per cent below the age of 35. A quick-moving life consisting of an imbalanced food plan and irregular sleep cycle have resulted in lifestyle diseases amongst kids. Moreover, hectic schedules as a result of long working hours usually are not only affecting their mental well-being but their physical health as well,” said Anuradha Sriram, Chief Actuary Officer, Aditya Birla Health Insurance.

Why should people buy medical insurance at a young age?

“The first focus of children between the age group of 25-30 years is to attain significant growth in life. Unfortunately, their health takes a backseat and eventually their unhealthy lifestyle snowballs into health issues. It is necessary that kids must prioritise their health and prepare themselves financially for the long run,” said Sriram.

“Investing in a comprehensive medical insurance not only protects against financial irregularities but enables the policyholder to ascertain a solid fitness regime. Modern medical insurance solutions reward the policyholder for maintaining a healthy lifestyle and enables him/her to set fitness goals,” she added.

Sriram lists the next benefits of shopping for insurance at a young age:

Low premium at a young age

It’s advisable that planning, savings and investments should start as early as possible. Same goes for medical insurance too. One should put money into a medical insurance plan early in life because at a young age, the probabilities of getting medical complexities are lower, and hence the health cover premium can be lower. There are products that provide early age discounts that will be very helpful within the medium to long run

Waiting period

It’s the time duration if you end up not allowed to make health claims for certain pre existing diseases, surgeries & special treatments. If an individual decides to purchase medical insurance at a young age, he/she’s going to not be impaired by such waiting periods.

A health safeguard on your life

Like several other commodity that needs protection to survive external damages, medical insurance protects the insured from the financial uncertainties arising out of medical emergencies. While health emergencies is perhaps rare at a young age, one still must be prepared for the unexpected. Also, the pandemic has demonstrated that many health exigencies will be outside one’s control while creating a major financial strain.

Duration of your health cover

There’s at all times an age criteria that one must comply with while buying a medical insurance plan. Buying medical insurance at a young age protects the insured for an extended period in comparison with those that are buying medical insurance at 40-50 years. Also, there’s a probability that insurers might reject the appliance or load additional premium payable if the insured is of old age and/ or has a poor health condition.

Brings financial stability to your life

One in every of the most important advantages of shopping for medical insurance is that it provides financial stability to the insured’s life. By paying a small amount of premium, one can hedge themselves from financial irregularities arising out of unexpected medical expenses

No Claim Bonus

No claim bonus assures bonus money which gets added to the sum insured for each claim free 12 months. Since there are at all times fewer probabilities of major disease & health-related problems at a young age, policyholders can gain the good thing about a no claim bonus for an extended period, providing inflation proofing for increase in medical expenses in the long run.

Tax Advantages

The premium amount in a medical insurance policy is tax-deductible under section 80D of the Income Tax act. Hence you’ll be able to claim a further tax saving profit, (subject to vary in response to the tax laws)

Additional Advantages

To guard the policyholders from health related expenses, the insurers have introduced a spread of additional advantages attached to medical insurance policies that are commonly often known as health riders. Health riders enables the customisation of an existing policy to suit the needs of the insured at a really low price.

Mental health consultations

For working individuals, it is important to handle their physical in addition to mental health. Having the ambition to attain success of their workspace can bring loads of challenges. One in every of the challenges is to balance their personal & skilled life. Keeping this in mind, insurers have give you add-on advantages of mental health consultation with experienced psychologists/ psychiatrists which helps the policyholders to guard their mental wellbeing as well.

“The pandemic has modified the mindset of individuals by instilling the importance of medical insurance in people’s minds. Investing in a comprehensive medical insurance solution not only gives the insured protection but additionally nudges them to live a healthier life by repeatedly monitoring their health and enabling them to take corrective measures to enhance it,” Sriram said in conclusion.

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