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5 Reasons Why Investing in A Health Insurance Is the Best Decision to Make in Your Twenties

Dec 06, 2019 | 7 months ago | Read Time: 3 minutes | By iKnowledge Team
Five Reasons to Buy Health Insurance in Your 20s

Rohan just started a new job six months ago. He loved the financial independence it gave him. He could travel, party, and hang out with his friends without any worries. He even managed to set aside some savings.

Everything changed when he had to be rushed to the hospital for severe stomach pain. He had a near-fatal infection which amounted to a bill of Rs. 1 lakh in hospitalisation costs to treat him. He had to liquidate his fixed deposits and borrow money from his parents to settle the bill.

It was then that his uncle advised Rohan to take up a health insurance policy, explaining how he could have avoided a whole lot of financial stress had he taken up a health insurance policy right when he started working. Rohan had always thought health insurance was something people his parents’ age would think about. But this crucial financial tragedy completely changed his mind.

Like Rohan, most of us believe that a health insurance plan is something to think about when we are older. It is important to realise that a health insurance cover can go a long way in protecting you from the rising costs of medical treatment and is a cost-effective and sensible choice to make in your 20s.

Here are 5 reasons why investing in health insurance is the best decision to make in your twenties.

  • Waiting Period

Most insurance plans today have a waiting period of 30-90 days in which you cannot claim your insurance despite having a medical emergency. So, instead of waiting for an emergency to push you into getting a health insurance, you might as well take the first step and get one early. There is a waiting period for many ailments such as cataract, urinary tract stones, knee replacements, arthritis and so forth. Most insurance providers declare at least 10 to 15 ailments which have a waiting period. Individuals above 60 years have a longer waiting period in some cases. [1]

  • More Comprehensive

If you buy health insurance in your twenties, it is bound to be more comprehensive and cover all sorts of ailments. The issue with taking up a health plan at a later age would mean that it does not cover many of your pre-existing illnesses. While there are many types of health insurances in India, they are all designed to provide a specific kind of cover. Buying a health insurance in your twenties ensures that you get the maximum coverage.

  • Low Premium

In most cases, the premium amount charged by an insurance provider depends on your current age. If you opt for a policy at a young age, you can avail of a lower premium. This is because the risk of you developing a serious illness in relatively lower at this age. While you may use this argument to postpone buying that health insurance, the price for plans are much lower for younger customers.

  • Employer Cover Not Enough

Almost all formal sector employers in India provide their employees with the option of health insurance at affordable premium payments. However, these plans largely depend on your position in the company and salary structure. Some policies might not cover your entire family. Taking up an additional health insurance simply rules out these issues.

  • Tax Benefits

Last but not the least, taking a Health Insurance plan can also help you save tax. Premiums paid towards Health Insurance policies are eligible for tax benefits under Section 80D of the Income Tax Act, 1961 as the health insurance premiums paid for self, spouse, children and parents all qualify for tax deductions. [2]

You should get a health insurance policy that will suit your needs and provide you with maximum coverage. To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.


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