7 Reasons why you should get medical insurance before you turn 30

You're young and healthy and may not see the need to buy medical insurance right now. You might think it's something to get after 30, so why spend money today? But a health crisis doesn't come with a warning. A medical emergency can strike anytime, and if you're not prepared, you'll have to use your savings to cover the cost.

Each year, around 50–60 million individuals are pushed into poverty due to high out-of-pocket medical expenses. These are expenses that could have been covered by insurance. Additionally, if you are the sole earner of the family, it places a financial and mental burden on your dependents.

What is the ideal age to purchase medical insurance? It is in your 20s. But why buy health insurance in your 20s only? It helps you stay financially and medically secure from an early age.

Let's explore seven compelling reasons why buying health insurance before 30 is one of the smartest long-term financial decisions.

Lower Premiums

When you are younger, the chances of developing illness are lower, so you get lower premium health insurance in your 20s.

As a low-risk customer in your 20s, you are eligible for lower premiums on health insurance for young adults. That's why buying health insurance in your 20s is a brilliant idea; it helps you secure medical costs at a young age.

Plus, you can lock in your premium. This means the amount you pay remains fixed for years, even as you grow older, offering affordable health insurance before the age of 30.

But if you wait until your 30s, your chances of facing health issues go up. Even if you're healthy, your premium will still be higher just because of your age.

And if you already have a medical condition, insurers may add a loading charge, an extra cost added to your base premium to cover their risk.

For example, at age 25, the premium for ₹5 lakh coverage may cost you about ₹5,000. But after your 30s, it increases to around ₹6,000, and by 45.

So, the earlier you buy, the more you save. On average, premiums increase by about 10% to 20% for every five-year age bracket in line with an increase in morbidity risk. —  Rupinderjit Singh, Vice President-Retail Health, ACKO.

No Claim Bonus (NCB) Advantage

• Unlike standard bonuses given in life insurance that pay off to policyholders periodically, the no-claim bonus/increasing bonus gets added to your sum insured by some percentage each year without an increase in your premium.

• By the time you are in your 30s or 40s, the amount of coverage you have will be significantly higher.

• The bonus acts as an incentive for your years of "healthy living." It increases your level of financial protection year after year, so by the time you might need the protection, you are better covered. 

• And a tiny, golden nugget of wisdom from us: Buy your policy early and let your No Claim Bonus steadily increase your coverage year after year without you having to shell out an extra rupee.
  

Pro Tip: Lock in your policy early and let the No Claim Bonus steadily grow your coverage year after year without costing you a rupee more.

Shorter Waiting Periods – Early Coverage for Critical Illnesses

When you get health insurance, most insurers require a waiting period of 1 to 4 years for pre-existing ailments and specific illnesses. You can't make claims for those conditions during the waiting period.

In your 20s, the likelihood of developing serious illnesses is low. This makes it the perfect time to start your health insurance journey. You can easily avoid waiting periods with early coverage and receive benefits for pre-existing conditions.

By your 30s or later, health risks naturally increase, and you will already be past the waiting period. This means you get full coverage when you need it, without delays or restrictions.

Buying early ensures continuous and complete protection. It gives you peace of mind knowing that your health insurance will provide full coverage when you need to make a claim.

Lifestyle-Related Illnesses Are Striking Younger

A busy lifestyle, poor sleep, and high stress are taking a toll on young adults. Serious health issues are now common even in your 20s.

Over two-thirds of people under 25 now exhibit limitations in basic physical markers, such as strength, flexibility, and balance – traits that were previously expected to decline much later in life. - Dr Suranjit Chatterjee, senior consultant in internal medicine at Indraprastha Apollo Hospital.

A sudden illness can burn your savings or put financial stress on your family. And since you are just starting your career in your 20s, financial stability is still a work in progress.

Early health insurance helps manage lifestyle and genetic conditions without added financial stress. It covers hospital stays, treatment, and even long-term care if needed. 

Plus, many insurance policies offer free annual health checkups. These tests help identify early signs of illness. This avoids larger expenses later.

Early health insurance gives you both financial security and health awareness.

Financial Independence Without Family Dependency

With your health insurance policy, you no longer have to rely on your parents' insurance coverage. You can handle medical emergencies on your own without putting financial pressure on your family. It also protects your savings, which you can use to invest in your future goals.

Buying medical insurance in your 20s shows responsible financial behavior. It helps you manage your money and plan for the unexpected. You learn to make wise choices that protect both your health and finances.

Other key benefits of obtaining medical insurance early include control and customization. You choose the type of health coverage for young professionals, compare different insurers, and customize the plan.

Employer Coverage Isn't Always Enough

You may be comfortable with your company's health insurance, but it is equally essential to be aware of its drawbacks. Leaving the job means the end of coverage. This is why it tends to leave one vulnerable should they have to take time off work, go on a sabbatical, or retire at a time when medical expenses may be substantial.

Also, corporate plans often have limited coverage. They may not be sufficient to cover major treatments or support your dependents. Plus, you don't get to choose the policy; the employer decides the insurer, plan, and benefits for everyone. 

Less than 5% of Indian companies offer their employees comprehensive health insurance coverage. This means that the policy provided may not suit your health requirements or cover pre-existing conditions.

Having an individual policy allows you to take complete control in choosing the best health insurance for those under 30. You can select the insurer, design the plan, and ensure it aligns with your lifestyle. It also safeguards you continuously during unemployment, freelancing, or retirement.

Tax Benefits Under Section 80D

The Income Tax Act allows one to claim deductions on health insurance premiums under Section 80D. If you are earning independently, a logical way to save on taxes is to enroll in a health plan. You can claim a deduction of up to ₹25,000 per annum on your insurance policy. 

If you are paying premiums for your parents, who are senior citizens, an additional deduction of ₹50,000 can be claimed. Hence, your maximum deduction increases to ₹75,000.

Thus, health insurance benefits you in two ways: firstly, it provides financial help during medical emergencies, and secondly, you get tax benefits. It is a step taken wisely to ensure long-term health and financial success.

Here are the deductions you can claim under section 80D:

Get the Right Health Insurance Plan with AssetPlus

Health insurance isn't just a backup; it's a core part of smart financial planning. The sooner you buy health insurance, the better the advantages at an early age. With lifestyle-related diseases on the rise and medical inflation on the increase, insurance becomes one of the best investments you could make early on. It protects your finances from unexpected medical costs.

At AssetPlus, you can explore, compare, and buy health insurance online with expert guidance and complete transparency. Start early. Stay protected. Secure your health and your finances today!

FAQ