Being in your 20’s is a very new and great experience. It is that part of life where you get to explore and experiment with different things and you also move from the phase of what life could be to what life really is! You become more social, start living on your own terms and conditions and make numerous decisions, which sometimes go well and sometimes don’t go as planned. But you never stop when you’re at this stage of life.
This stage of life sets the building block of your future, and that’s why some important decisions like the purchase of a health insurance policy should always be considered when you are young. Many people have this myth that they don’t need health insurance because they are young and healthy, but they are totally unaware about the numerous benefits which they can get by buying a health insurance policy in their 20’s.
In this article, we will look at the top 5 benefits of buying a health insurance policy in your 20’s.
1. Low Premium Amount
With advancement in age, your health starts deteriorating, and you need regular medical attention. In your 20’s, however, you are young and healthy, and that’s why your chances of falling ill or contracting any diseases are very less. Now, the premium amount in a health insurance policy is decided based on the risk related to the buyer. The higher the risk, higher will be the premium amount. That’s the reason why health insurance companies charge less premium from young buyers who have lesser chances of making claims under the policy. That’s why it is always better to buy a health insurance plan in your 20’s because it will allow you to enjoy low premium amount with higher health insurance cover.
2. No Waiting Period
Generally, there is a waiting period of 30 days in health insurance policy, during which you can’t make a claim even if you have any medical emergency. There is also a disease specific waiting period in which specific diseases are not covered under the policy for a period of 2-3 years (the waiting period for specific disease caries from company to company). So by buying a health insurance policy at a young age allows you to exhaust the waiting period without any worry. Since at that age you are less prone to diseases and you can easily surpass the waiting period time frame.
3. Accumulation of No Claim Bonus
Most of the health insurance companies offer a no claim bonus if no claim is made during the preceding year of the policy term. The bonus ranges from 5% to 100% of the sum insured and is given in the form of reduced premium amount or higher sum insured. So by buying a health insurance policy at a young age, you will be able to get a cumulative bonus which will increase your health cover without increasing in premium. The accumulated bonus can prove to be very useful in later stages of your life when you require more medical attention.
4. Better and broad options
Most of the health insurance companies accept the application of young buyers and that’s why a young buyer will have a better and wider option of health insurance policies to choose from. You will be able to make a pool of some of the best health insurance policies and then select the right one for you. By purchasing a health insurance policy at a young age, you can also get the benefit of lifetime renewal.
5. Less chances of Rejection
An application for a health insurance policy can be easily rejected on the basis of serious medical conditions of the buyer. Such cases usually occur when people decide to buy a health insurance policy at an advanced age. So by purchasing a health insurance policy at a young age, you will have lesser chances of rejection by health insurance companies. Also, at this age you do not have to undergo a medical examination for securing the health insurance plan and can buy a policy online in a hassle free manner.
Once an eminent American author Rick Warren said, “The wise look ahead and make plans.” So, a health insurance policy bought in your 20’s can prove to be a highly beneficial and wise decision in your future. Instead of relating a health insurance plan to something that should be bought at an advanced age, you should understand the advantages of buying a health insurance policy at a young age and get covered under a health plan as soon as possible.
Image credits: Flickr/401(K) 2012