A medical emergency can hit anytime, anywhere, anyone and at any age. Illnesses are no longer associated with old age alone; lifestyle-related diseases affect the young in growing numbers.
Buying health insurance at a young age allows reaping benefits of lower premiums for larger covers
A medical emergency can hit anytime, anywhere, anyone and at any age. Illnesses are no longer associated with old age alone; lifestyle-related diseases affect the young in growing numbers.
It is not just old and elderly who have to face the consequences of a medical emergency. Studies have revealed that nearly 40 per cent of the people suffering a heart attack in India are under 55. Added to this is the rising treatment cost due to medical inflation. The good news is that the cost of protecting oneself is quite nominal when young.
The COVID-19 pandemic has been an eye-opener. Not only has it changed our outlook towards life, but it has also made us more conscious about our health and wellbeing. The dark cloud of COVID-19 has one silver lining – people, including millennials, have finally begun to appreciate the importance of health insurance. Recent industry reports reveal that many young people are now enquiring about and buying health insurance policies. Data indicates that over 60 per cent of millennials are looking for comprehensive health covers; this number was around 35 per cent before COVID-19 hit the country.
Why does health insurance at a young age help?
1. Waiting period: Health insurance policies usually come with a predefined waiting period. During this period, one cannot submit claims for medical emergencies or planned hospitalisation. Buying a health cover at a young age allows one to exhaust their waiting period while remaining healthy
2. Rising medical inflation: With constantly rising medical inflation, it is imperative to invest in a comprehensive health insurance policy to avoid draining one's savings in medical treatment
3. Low premium: Premium charged is a factor of the age of the policyholder. Buying health insurance at a young age allows reaping benefits of lower premiums for larger covers
4. Accumulated bonus: Most policies offer discounts on premiums if claims are not filed. At younger ages, policyholders are likely to collect significant no-claim bonuses if they renew their policies every year. This increases their overall coverage amount, which, in turn, will be an advantage later in life
5. Protect wealth: Paying a small monthly premium while young offers significant benefits in later life stages. It enables one not only to enjoy increased coverage but also manage finances in a better way. With wealth protection taken care of, they can focus on wealth creation through other investments and use their hard-earned money to pursue dreams!
2020 has taught us to understand our vulnerabilities and make efforts to prepare for the unexpected. Insurance helps protect against any financial uncertainty that life throws up. From protecting health, wealth and family, insurance offers comprehensive cover to hopes, dreams and aspirations, at a relatively small price.
Even if one is in perfect health, mediclaim plays a critical role in financial planning. It protects from dipping into and depleting savings in case of medical emergencies.
Health insurance should be an indispensable part of one's financial planning exercise. Millennials still sitting on the fence over health cover should use the experience of 2020 and protect them and their finances from unexpected medical emergencies. The cost is insignificant compared to the peace of mind it brings!
The author is Executive Director and CEO at Edelweiss General Insurance.
DISCLAIMER: Views expressed are the author's own. Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.