Changing lifestyles and the covid-19 epidemic have placed our health into attention as we face new health concerns regularly and we wonder about the right time to buy a health insurance policy. Furthermore, our country’s health infrastructure is already overburdened, and we cannot overlook the relevance of health insurance coverage.
We never know when a medical emergency will hit, and we may encounter health dangers at any point in our life, regardless of age. As a result, it is prudent to obtain health insurance coverage at the appropriate time to avoid financial troubles as a result of these health emergencies.
To make things easier, we have covered everything you need to know about the right age to buy a health insurance plan and the right time to buy a health insurance policy in this article.
Why Do You Need Health Insurance?
Medical emergencies can occur at any time and, if not properly prepared for, can result in a financial emergency. In layman’s terms, health insurance is a contract in which the insurance company pays for medical expenses in exchange for monthly premiums.
With a single policy, health insurance would cover cashless treatments, regular health examinations, and so on. Yet, there are two types of health insurance that you can purchase:
1. Individual Health Insurance Policy
If you require benefits such as cashless hospitalization, an individual health insurance policy is highly suggested. In the event of a medical emergency, the insurance company will settle the amount with the hospital or nursing home. As a result, when you know the right age to buy a health insurance plan, you won’t have to worry about a financial emergency or paying for therapy in cash.
The premium for this insurance is determined by the policyholder’s age and medical history. Overall, this coverage meets all of an individual’s health insurance needs if you know the right time to buy a health insurance policy.
2. Family Floater Health Insurance Policy
If you are married and have children, it is the right time to buy a health insurance policy such as a family floater health insurance plan. This policy provides coverage for the entire family under a single insurance policy. According to the needs, the policy’s sum insured can be used by an individual member or by the entire family. The premiums for these policies, however, are slightly higher than those for individual coverage. Nonetheless, it provides flexibility in sharing and utilizing the sum assured with the family.
During the rainy season, when mosquito-borne diseases such as dengue fever are on the rise, family floater insurance plans come in handy. Knowing the right time to buy a health insurance policy that will cover all charges will keep you financially and mentally at ease.
Read more: 10 Things to Remember While Buying Senior Citizen Health Insurance
Reasons to buy a Health Insurance Policy at a Younger Age
If you know the right time to buy a health insurance policy, you can get many benefits. There are numerous reasons to purchase health insurance at a younger age, and if you can afford it, you should do it as soon as you reach 18. Let’s take a look at some of the reasons why getting health insurance at a younger age is the right age to buy a health insurance plan.
1. Lower premiums for younger policyholders
One of the most important factors influencing health insurance premiums is the right age to buy a health insurance plan. Insurance companies perceive younger people to be healthier and hence have reduced liability for them. On the other hand, because older people are more susceptible to diseases and ailments, they pose a bigger risk to insurance providers. That is why you must find out the right time to buy a health insurance policy.
Because insurance companies cannot forecast a person’s health risk from diseases or ailments, the policyholder’s age is the only element influencing their well-being. As a result, the younger age is the right time to buy a health insurance plan, which will lower the health insurance premium.
2. No pre-policy medical tests
A younger person applying for health insurance will not be required to have a medical exam before purchasing the policy because this is the right time to buy a health insurance plan. As a result, any physical condition or disease that could raise the policyholder’s health insurance premium is not identified which makes it the right age to buy a health insurance plan.
However, persons over the age of 45 must have a medical exam before purchasing health insurance. The insurance policy is then issued based on the results of the medical examination, so knowing the right time to buy a health insurance plan is important.
3. Ease in getting over the waiting period
Except for accidental hospitalization, the health insurance coverage contains a 30-day waiting period that must be completed before filing a claim. A younger policyholder is less likely to file a claim during this waiting period because the likelihood of them having a major medical condition is quite low.
As a result, a younger person can easily go through the waiting period without filing a claim. Yet, older persons may experience a medical emergency within days of purchasing the policy and will be unable to file a claim during the waiting time. Hence, when you are young, it can be the right time to buy a health insurance policy.
4. The Greater possibility of accruing a cumulative bonus
Most health insurance policies offer a cumulative incentive to policyholders for each year of no claims. This bonus adds up to the total assured at no extra expense, and younger people are more likely to accrue these bonuses. This is because they are more likely to be healthy and may not need to file a claim during the policy year.
As a result, knowing the right age to buy a health insurance plan and with each passing year of health insurance coverage, customers might easily acquire a higher cumulative bonus. A senior individual, on the other hand, may need to file a claim due to age-related medical issues and is less likely to earn a cumulative bonus.
5. Financial Freedom
The primary goal of health insurance is to pay for medical bills and to save money on medical expenses. Younger people can save a lot of money on medical illnesses, especially those caused by sedentary lifestyles, by purchasing health insurance coverage. As a result, the sooner one obtains health insurance, the more financial independence one can experience. It means young age is the right age to buy a health insurance plan.
What is the Right Age to Buy a Health Insurance Policy?
Many of us are unsure about the right age to buy health insurance plans; nevertheless, the mid-twenties and early thirties are the right time to buy a health insurance policy. People at this age are more likely to be in good health and are free of any familial financial obligations. Let’s have a look at the outcomes of purchasing health insurance coverage at various ages to find out the right time to buy a health insurance plan.
1. Buying Health Insurance Policy in Mid-Twenties
Because you are just starting your work and are not under any financial stress, the mid-twenties are an ideal age and the right time to buy a health insurance policy. As a result, you will be able to pay the premium simply, and the premiums will be inexpensive, allowing you to purchase health insurance with higher coverage.
This also enables you to afford additional coverage, such as maternity insurance, and avoid the waiting period if you decide to create a family in the following years. Also, you can build up a higher cumulative bonus without claiming for several years.
2. Buying Health Insurance Policy in the Thirties
Most people decide to settle down and start a family in their thirties. As a result, in addition to looking after yourself, you must provide financial security for your wife and children. Also, you must purchase supplemental coverage for conditions such as heart disease or cardiac disease, which are known to emerge at this stage of life.
At this point, you can choose a family floater plan that would cover all of your family members under one policy and this is the right time to buy a health insurance plan. Yet, it will raise health insurance rates and increase the likelihood of claiming at this time.
3. Buying Health Insurance Policy in the Forties/Fifties
Financial burdens are at their peak in the forties and fifties. Also, there is a risk of contracting ailments such as hypertension, diabetes, and heart disease. Health insurance coverage may be quite expensive and difficult to afford at this point in life.
To obtain high coverage for family members at a cheap price, it may be preferable to obtain a family floater policy rather than an individual policy. Furthermore, now is an excellent moment to arrange for post-retirement savings and the right time to buy a health insurance policy because of the substantial income tax deductions available on health insurance.
4. Buying Health Insurance Policy after 60 Years of Age
Beyond the age of 60, you are more likely to suffer from severe illnesses that require rapid hospitalization and treatment, therefore having a health insurance policy is critical. As a result, standard health insurance coverage will not suffice at this point in your life, and you may want a senior citizen health insurance policy. These health insurance policies have a higher sum insured and cover AYUSH therapy, hospitalization, organ donation expenses, and so on.
The right time to buy a health insurance policy is as soon as feasible. Premium expenses rise with age, and you don’t want to risk becoming ill and suffering physical and financial hardship. Furthermore, having health insurance will help you manage your budget.
Right Time to Buy a Health Insurance Policy – FAQs
Why a health insurance policy is important?
Ans. The health insurance coverage covers medical emergencies, which can be costly. Given our hectic schedules, lifestyle diseases, rising medical expenditures and bills, and the current covid-19 outbreak, having a comprehensive health insurance policy is essential. You must know the right age to buy a health insurance plan.
What is the right time to buy a health insurance policy?
Ans. To be honest, there is no terrible moment to purchase health insurance. The younger you are, however, the better it is for you and your finances. Young people can obtain health insurance plans that provide a large sum insured for a low payment. Also, when you are young, it is simple to go through the health insurance waiting period without incurring too many out-of-pocket payments and is the right time to buy a health insurance policy.
Is health insurance and life insurance different?
Ans. Health insurance and life insurance are two very different policies. Your health insurance policy will assist you in covering the costs of medical treatment. It gives you a safety net to fall back on if you are diagnosed with a disease or require emergency medical assistance following an accident.
Life insurance policies, on the other hand, are commonly utilized as an investment vehicle. They pay a maturity reward to the insured at the end of the policy period. These plans provide financial assistance to the insured person’s family members. If something happens to the insured during the policy’s term, the nominee is compensated.