Why Purchasing Health Insurance is the Right Investment ?

Insurance is one of the grueling topics which not many individuals want to discuss. Insurance is not only crucial for elders but also for youngsters. There is a perception that Insurance is an extra expense and most of the youngsters generally avoid purchasing the Insurance. They generally think that they are quite young and there is nothing to worry about health as nothing will happen to them. But diseases never ask you before coming to you if you are young or not and we are living in the 21st century where most of the things are polluted. So, there is an immense probability to get sick at a young age as well.

As a youngster, generally we do not have much money to spend on health if a critical disease occurred to us and we end up being in huge debt. So, instead of going to such a difficult condition, we should plan enough to purchase health insurance at a young age which will not only secure you in difficult condition but it will give you a sense of peace. Also, purchasing health insurance at a young age will not cost much to you and if you are thinking that you will purchase health insurance at a later point of time, believe me, it will cost you huge money and becomes difficult to purchase insurance at a later age as you need to go through medical checkups as well.

So now you have understood why purchasing health insurance at a young age is crucial not only for you but for your family as well. Now we will discuss other benefits and reasons to invest in health insurance as early as possible.

1. Excellent Plans with Lower Premiums at a Young Age: As we understood above, purchasing health insurance at a young age will not cost you much. There is an additional benefit of purchasing health insurance at a young age is Insurance Companies provide a comprehensive plan which not only covers normal disease but critical diseases such as Cancer, Kidney failure, Bypass Surgery, etc. without having a medical checkup. Further, the coverage will only increase as you get older because Insurance Companies provide No Claim Bonus when you do not have any claim in last year.
2. Waiting Periods: Health Insurance plans have certain waiting periods that may range from 30 days to 4 years during which no claims can be made for specifically mentioned diseases. If you buy Insurance Plans at a young age, you can be sure that you can easily ride out such waiting periods. Also, there is another caveat that you can not claims for pre-existing diseases for a certain period of time. Being at a young age we generally do not have any pre-existing disease so we don't need to wait.
3. Tax Benefits: Most of the countries provide tax benefits when you purchase health insurance for you and your dependents. For example in India, you can claim up to ?60000 as a tax exemption if you pay for self and your dependent parents (If both are senior citizens).
4. Health Insurance helps in retirement planning: Do you know that health insurance helps you in retirement planning? Yes, it is true as health insurance comes with a lifelong renewability feature which is very helpful after you retire. In your old age, your income is low and the probability of medical contingencies is high. If you have a health plan, any medical contingency you face would be covered by a health insurance plan thereby sparing your savings.
5. Cumulative Bonuses: Almost all the insurance companies provide a cumulative bonus for every claim-free year called the "No Claim Bonus". When you buy insurance at a young age, chances are that you will end up having doubled the sum insured of a policy which will be helpful in the later years when you actually need a large coverage.
6. Financial planning: Buying a health insurance policy at a young age not only gives you greater coverage but also helps you plan your finances in a better way. When you have adequate medical cover to take care of any health emergencies, you can focus on making other long-term investments.

I hope above all the points will push you to buy health insurance as early as possible. Also, if you made a plan to buy you might be worried about the things you need to check before purchasing health insurance and also the appropriate sum insured that you need to select, don't worry my next article will help you to understand all such intricacies. Till that time thank you for reading this article and I am sure it adds some value :-)

Do provide your thoughts and feedback it helps me to write more such articles in the coming future.

Disclaimer: Before making any decision do think twice and if required take the help of a financial advisor, I am not responsible for any loss being occurred to you although I have shared the best of my knowledge.