Why You Should Consider Getting Health Insurance in Your 30s and 40s

Health insurance is one of the most critical investments you can make keeping in mind the rising medical costs in the country. Getting a health insurance policy at an early age helps in better financial planning. This is because healthinsurance helps in saving taxes and provides financial assistance for medical expenses. As a result, you do not have to dig into your savings in case of medical emergencies. Ultimately, it helps you save money in both ways. 

Moreover, with the increasing cost of medical expenses and the unpredictable nature of health issues, it is important to have a strong financial backup that can help you sail through these difficult times. Know about the benefits of health insurance, the ideal coverage to have, and more below.

Benefits of having health insurance

Comprehensive coverage for medical expenses: A good health insurance policy covers a range of medical expenses. You get coverage for hospitalisation costs, diagnostic tests, surgeries, and more. Moreover, some policies also cover pre- and post-hospitalisation expenses, making it easier for you to manage your finances.

Cashless treatment: One of the biggest advantages of having health insurance is the cashless treatment facility. Under this, you can get treated without paying any cash, as the insurer pays for the health expenses directly to the network hospital.

Financial backup: Health insurance acts as a strong financial backup during medical emergencies. So, you do not have to worry about the high costs of medical procedures and treatments. This helps you to focus solely on your recovery and well-being.

Tax benefits: Health insurance policies also offer tax benefits under Section 80D of the Income Tax Act, allowing you to avail of a deduction up to Rs. 25,000 per annum on the premiums paid.

Benefits of buying health insurance at an early age

One of the primary benefits of having health insurance at a younger age is that you can get higher coverage at a lower premium. As people at younger ages have higher immunity and lower health risks, insurance companies generally consider them as low-risk customers. This translates into lower premium rates, allowing you to enjoy higher coverage at lower costs.

Moreover, most health insurance policies come with a waiting period ranging from 30 days to 4 years for pre-existing diseases. By purchasing a policy at an early age, you can easily serve the required waiting period without worrying about any medical emergencies or pre-existing conditions.

Additionally, buying health insurance at a young age also helps in getting some additional benefits. Many insurance companies offer benefits like no-claims bonus and discounts on premiums for maintaining a good health record.

What is an ideal sum insured required to stay fully covered?

The sum insured is the maximum amount that your health insurance policy will cover in case of a medical emergency. The ideal sum insured may vary depending on your age, medical history, and lifestyle. Typically, a sum insured of at least Rs. 5 lakh is advisable for people in their 30s and 40s.

Things to consider when choosing health insurance in your 30s and 40s

Coverage and benefits

The first thing to consider when opting for a health insurance policy is the scope of coverage and benefits. Ensure that the policy covers hospitalisation, daycare procedures, pre- and post-hospitalisation expenses, and domiciliary treatment.

Policies with no sub-limits

Many health insurance policies come with sub-limits, which means that there is a cap on the amount that the policy will cover for specific expenses like room rent, ICU expenses, etc. It is advisable to opt for policies with no sub-limits to ensure complete coverage.

Network hospitals

Choose a health insurer that has a wide network of hospitals that are easily accessible and where you can avail of cashless treatment. This would help you avail of cashless treatment during emergencies.

Claim settlement ratio

The claim settlement ratio refers to the percentage of claims that an insurance company settles in a year. It is advisable to opt for insurance companies with a high claim settlement ratio to ensure smooth and hassle-free claim settlement.

Policies that offer renewal bonus

Many health insurance policies offer a renewal bonus that increases the sum insured at each renewal without any additional premium. Most health insurers offer a cumulative bonus, also known as No Claim Bonus. You get this bonus if you have not made any claims during the active policy year. You can accumulate up to a 50% bonus for having a claim-free policy year. You can use this bonus to increase your sum insured during health insurance renewal.

Terms and conditions

Lastly, the most important thing to check when getting a health insurance policy is the policy terms and conditions. Your policy document will contain all the information related to coverages offered and excluded, and a list of waiting period. Also, how you can make claims and what documents you would require for raising claims. Reading the policy terms and conditions will help you stay aware, so you do not face any hassle when making your health insurance claims.

Nonetheless, you can get additional coverage over and above your regular health insurance policy with add-on covers. These add-on covers compensate for the medical expenses that are usually not covered under the basic health insurance plans. Add-on covers also benefit if the sum insured on your primary health insurance plan gets exhausted.

Here are a few add-on covers that you can benefit from:

Critical illnesses cover

A critical illness cover provides financial assistance in case of life-threatening illnesses like cancer, heart attacks, etc.

Hospital cash cover

A hospital cash cover offers a fixed daily cash benefit during hospitalisation. It can help cover additional expenses like transportation, food, etc.