Several reports on national health expenditure have revealed that a majority of Indians still pay medical expenses out of their own pocket.
Several reports on national health expenditure have revealed that a majority of Indians still pay medical expenses out of their own pocket. Such expenses are not covered under any government or private insurance scheme. As a result, a large section of the population does not have access to good quality health services.
There is no doubt that India has come a long way in terms of medical technology. For the last few years, the cost of treatment is also increasing continuously. Buying a health insurance policy at the right time is of utmost importance to deal with the rising medical expenses.
Right time to buy health insurance policy
Most of the people think that if they are healthy now, they can buy a health insurance policy after some age. However, this is one of the biggest mistakes people make in general.
It is considered best to buy a health insurance policy at a young age, especially in the age group of 20 to 25 years. They have been told about the benefits of buying a health insurance policy at a young age.
Benefits of buying a health insurance plan at a young age
By buying a health insurance policy at a young age, one gets the full benefit of financial security right at the beginning of one’s life. Apart from this, the other advantages of buying a health insurance policy at a young age are mentioned below:
Benefits of affordable premium
Insurance companies decide the amount of premium taking into account several factors, such as:
insurance coverage
pre-existing disease
Option to voluntarily pay co-payments or deductible
Add-on cover
Apart from all these things, the age of the policyholder is also a very important factor that insurance companies take into account while deciding the premium amount.
No insurance company can predict whether a person is at risk of getting a disease or not. Therefore, the age of a person is considered to be the only proof of his good health. Insurance companies generally recognize that older policyholders are more prone to illness and frequent claims. That’s why most insurance companies charge higher premiums from people in the older age group.
The advantage of crossing the waiting period easily
Generally, there is a waiting period attached to the health insurance policy. This is a specified time limit during which the policyholder cannot make any claim except in case of sudden hospitalization.
In most cases, young people are unlikely to become seriously ill. Thus, as compared to senior citizens, such people are more likely to cross the waiting period easily without any worries.
No need for medical examination
People who buy a health insurance policy at an older age have to go through various medical tests before that. Only after the results of the medical examination, the insurance company issues the policy coverage to that person.
However, when it comes to youngsters buying a health insurance policy, most insurance companies waive such medical tests. This way the application process becomes very convenient and quick for the youth.
Chances of depositing NCB increases
NCB is a reward given by insurance companies to policyholders who do not make any claims during the policy year. Policyholders can avail the No-Claim Bonus in two ways, which are as follows:
Cumulative benefit
Discount on premium
Under cumulative benefit, a higher sum assured is offered by the insurance company. For example, suppose a policyholder has bought a health insurance policy with a sum assured of Rs 5 lakh. His insurance company offers a cumulative benefit of 5% every year in case of no claims. Thus, after making no claims in the first year, he will be entitled to get a sum assured of Rs 5.25 lakh.
Similarly, under the benefit of premium waiver, policyholders who have not made any claims for five consecutive years can enjoy a reduction in premium up to 50%.
Generally speaking, young policyholders are more fit and hence less likely to claim every year. Thus, they can collect no-claim bonus on their health insurance policy along with various discounts and benefits.
Apart from knowing the right time to buy a health insurance policy, it is also very important for people to choose an insurance plan that offers cumulative benefits. In this case, one can also consider the various types of health insurance policies offered by Bajaj Finance Limited. Bajaj Finance has partnered with some of India’s leading insurance companies to give you complete financial protection against pre and post hospitalization expenses like medical check-ups, ambulance charges and many more . You can choose from a variety of health insurance plans that offer complete coverage, including individual and family health insurance policies.
It is obvious that the offers are also very good for the customers who buy the health insurance policy at a young age. However, before buying the policy it is important to read the terms and conditions of the policy carefully to make an informed decision.
