Are you an early starter in life? Are you the one who always goes an extra mile to achieve your ambitions? Are you a go-getter? These are a few personal characteristics which make you an ideal health insurance buyer.
Don’t get confused! We said this for some reasons.
• We expect the smart e-generation to start early in every sphere of life
• We expect them to manage their income smartly
• We expect them to secure their health so that there is no full stop to life
• We expect them to know how expensive quality treatment is
• We also expect them to know that our health is sensitive to the physical and mental environment, no matter how hard we try
These are reasons which will make us realise better why we need health insurance, and why we need it early.
We give you four compelling reasons to help make up your mind:
1. No Financial Hardships:Choosing health insurance early means less financial stress. Also, you need to pay less to buy a health insurance policy at an early age. Your parents can buy a health cover for you when you are 90 days old. However, if you think that you are too young to get a health insurance policy, think again.
Let us take an example. Rohan is a 25-year old man who has just started working in an advertising agency. He lives in Delhi. His travelling distance from the office is about 30km. He rides a bike and happens to have an active social life with friends and colleagues. At the age of 25, why does Rohan need a policy?
• Rohan is prone to health hazards like pollution, stress, unhygienic roadside food, seasonal diseases and perhaps, a lifestyle sans exercise.
• Rohan can take advantage of a health insurance policy, which covers theoverall risk of hospitalization. If he needs treatment for a common ailment like dengue, for example, his hospitalization expense in a private hospital will cost him about Rs. 25,000 – 50,000, not accounting for the leaves he would have to take to recover from the illness, Rohan would ultimately end up not only paying out of his savings, but he is also likely to lose his income for some time.
• If he already had an insurance policy, even for just Rs. 1 Lakh, he would not need to pay much from his pocket. He could also include cash benefit in the plan to take care of his daily expenses while hospitalised.
• Also at 25, for 5 lakh coverage, you will pay a premium of Rs. 7,000. At 35, he will have to pay Rs. 8,000 for the same amount of coverage.
2. Quality Medical Treatment: People from different income groups can opt for a policy to suit their budget. Like, in the case of Rohan, he can take a standard health insurance cover. He can increase it later, once he gets married. He can then choose a family cover.
Do you know how much your wife’s delivery will cost you in a private hospital? It can cost you anywhere from Rs. 70,000 to 2,00,000 depending on the type of treatment you opt for. Considering that you will like to go for a safe delivery, with caring professionals around you; quality medical treatment comes at a cost.
Medical insurers nowadays offer cover for maternity expenses in their health insurance policies after a waiting period of 4-6 years. Buying a health insurance policy early in life can ensure that you can avail the maternity expenses cover when you need it.
3. No-Claim Bonus: Apart from getting the benefit of lifelong renewal, you will also have the advantage of the no-claim bonus. For example, Rohan buys a policy at the age of 25. Suppose, he pays an insurance premium of Rs. 7,000 for an insurance coverage of Rs. 5 lakh per annum. Every claim free year makes him eligible for a no claim bonus, up till the insurers' specified limits. Depending on the insurer’s conditions he’ll either receive it in the form of increased sum insured or a discount on the renewal premium.
His insurance coverage can increase by almost 50% year-on-year, while, he will continue to pay a small premium.
Private insurers like Apollo Munich offer a cumulative bonus for their consumers who stay healthy for a longer time. Such bonus can increase the amount of cover for the person/family by 50%, up till 100% of the basic sum insured.
4. Comprehensive Insurance Cover: Early health insurance buyers have an advantage of choosing the right cover. Many treatments are covered under specific products which have a maximum entry age. In addition, if you buy a health insurance early, you will get an insurance cover for pre-existing diseases. After you are diagnosed with a disease, the premium cost will be higher, or it will be difficult to get the disease cover.
For example, if Rohan has a family history of heart problems; he should ideally opt for an insurance cover early. He is more prone to the risk, given his family history and lifestyle.
Health insurance is an important investment to make not just to save tax but for safeguarding your life goals and your beloved family.