8 Reasons Why Purchasing Health Insurance in the 20s is a Good Idea

8 Reasons Why Purchasing Health Insurance in the 20s is a Good Idea. The 20s is the most crucial period in any person’s life because the decisions taken.

Raju Choudhary

Why Purchasing Health Insurance
Why Purchasing Health Insurance

The 20s is the most crucial period in any person’s life because the decisions taken during this time significantly impact the rest of their life. While most people are busy laying a strong career foundation in their 20s, they often don’t consider investing in health insurance plans.

Also Read – Which is the Best Health Insurance for Parents

But ever since the prevalent sedentary lifestyle has started to give rise to numerous lifestyle-related diseases, even younger people have taken insurance seriously. Surprisingly, there are various benefits of investing in health insurance in your 20s. From lower premium rates to tax benefits, a lot of younger people can take advantage of due to early insurance investment.

If you’re in your 20s and contemplating the idea of securing yourself under a reliable health insurance plan, we’d suggest giving it a go. If you’re still on the fence regarding your decision, the following reasons might help shape your decision.


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Lower Premium Rate

A person’s age plays a massive role in determining the health insurance’s premium rate. Since people tend to become vulnerable to diseases and illness as they age, they are subject to a higher premium rate with increasing time.

It is one reason you can see two people in different age groups paying different premiums for the same type of health insurance policy. People in their 30s will naturally pay a higher premium than people in their 20s. So the earlier you invest in health insurance, the better.

Lower Rejection Rate

People in their 20s tend to enjoy their youthful days without much worry. Younger people are seldom subjected to critical illnesses or diseases. Since people are young, active, and healthy during most of their 20s, insurance companies rarely reject any application from young people. Exceptions are always there, but the majority rejection rate is pretty low.

Also Read – Insurance: What is Insurance?

You can buy health insurance online without any worry and hassle. You must select the right insurer and apply for the insurance plan covering your current medical needs. Since the probability of having a disease or illness in the later stage of life cannot be overruled, it is best to get insured in your 20s.

Increase in Lifestyle-related Illnesses

Most people have started to lead a sedentary lifestyle, which is dangerous for our overall health. You may invite many health problems if you’re in your 20s and spend most of your time sitting in front of a laptop, eating junk food, and not exercising enough. Diabetes, hypertension, asthma, heart disease, obesity, and osteoporosis are a few lifestyle-related diseases that can engulf you if you don’t alter your lifestyle.

Insurance companies are ready to offer generous coverage at a relatively lower premium to people in their 20s who aren’t diagnosed with serious health conditions. But if you develop any lifestyle-related illness before investing in health insurance, it can shoot up your insurance premium. Hence, to remain safer, invest early in the right insurance plan.

Pre-medical Health Checkups are Not Mandatory

If you’ve crossed a certain age, say 40, insurance companies may ask you to undergo specific health checkups before approving your health insurance application. But it is not always the case for people in their 20s. Unless you’re diagnosed with any disease or illness, chances are rare that an insurer will ask you to undergo medical tests.

Insurers believe that people in their 20s are generally healthy, so pre-medical health checkups are not mandatory. However, certain insurance companies may ask for a medical checkup before approving the insurance application.

Also Read – Deduction for Medical Insurance Premium Under Section 80D

Availability of Better Coverage

Good coverage comes at a good price, especially for people beyond 30 years of age. Since the insurance premium rate tends to increase with age, people in their late 30s and beyond avoid better coverage plans owing to the high premiums.

But you can prevent yourself from landing in a similar situation by investing in health insurance in your 20s. Since the health insurance plans are generally affordable for younger people, choosing a policy with generous coverage becomes easier. You must find the ideal policy and insurer to get the best deal.

Tax Benefits

One of the best ways people working in their 20s can save money is by investing in health insurance plans. It may sound surprising, but investing in insurance can help you save money through tax savings. Every health insurance holder gets to deduct the amount paid towards the premium under section 80D.

The deduction can be claimed up to a maximum of Rs.25,000 if your policy only covers yourself. But the health insurance tax benefits can reach up to Rs.50,000 if your parents are covered under the insurance. This range can be increased up to Rs.75,000 if you’re paying for health insurance that covers your parents, who are 60+ years of age.

Corporate or Group Health Insurance Coverage is Insufficient

Many companies have started to offer group health insurance as part of CTC to attract young talent. While it is an excellent employee benefit to have, it should be remembered that corporate insurance cannot substitute a standard and personalised health insurance cover.

The coverage in group health insurance is pretty standard, but it still lacks in certain aspects. So if you’re not investing in a separate health insurance plan because you’re currently covered under corporate insurance, you need to rethink your decision. If you decide to make a sudden job change, you will immediately lose access to all your healthcare benefits- something which will never be the case with individual healthcare plans.

Also Read – Impact of GST on Insurance Sector

Tackling Unexpected Medical Emergencies Becomes Easier

Life is uncertain, and it should be enough reason to start building an emergency medical fund at the earliest. Some people make the common mistake of delaying their health insurance purchase until they reach their mid-30s or encounter a medical health emergency.

In both cases, it becomes late to invest in health insurance, eventually costing people their money. You can easily avoid this situation by purchasing health insurance in your 20s.

Early Health Insurance Buying is a Must for People in Their 20s

Investing in health insurance plans has always been an excellent decision for people. And those who invested early managed to get the maximum benefit from it. If you’re in your 20s, creating a medical emergency fund right now can go a long way in ensuring a healthy and secure future.

It will enable you to get the best treatment, irrespective of the rising medical inflation. If you want to drain your savings against sudden medical emergencies in the future, get yourself insured under a health plan today.

Also Read – Here’s Why You Should Opt for Critical Illness Policy While Buying Insurance

Raju Choudhary

Article by Raju Choudhary Raju has written 810 articles. If you like This post, you can follow CAknowledge on Twitter. Subscribe to CAknowledge feed via RSS or EMAIL to receive instant updates.


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