There are several key advantages to getting a health insurance policy when you're young and healthy.
Lower Premiums: Premiums are largely based on age and health. Insurance companies view younger people as a lower risk because they are less likely to have chronic health issues. This means you'll pay a much lower premium compared to someone who buys a policy later in life.
No Pre-policy Medical Check-ups: Most insurers don't require a medical check-up for younger applicants. This is a significant benefit because it prevents any potential health conditions from being discovered that could increase your premium or lead to your application being denied.
Easier to Complete the Waiting Period: Most health insurance policies have an initial waiting period, often around 30 days, before you can make a claim. A younger, healthier person is less likely to need medical care during this period, making it easier to serve out the waiting time without incident.
More Comprehensive Coverage: When you're young and healthy, you typically don't have pre-existing medical conditions like diabetes or hypertension. This allows you to get a policy with a higher sum insured and more extensive coverage benefits. If you wait until you're older and have developed these conditions, your options will be more limited, and the coverage may be less comprehensive.
Cumulative Bonus: Many plans offer a cumulative bonus for every year you don't make a claim. This bonus can increase your sum insured at no extra cost. Since younger people are generally healthier and less likely to make frequent claims, they can easily build up a significant cumulative bonus over time.
While the best time to buy health insurance is as soon as you can, the impact of your age on your policy changes over time.
Buying in Your 20s: This is the ideal time. Your premiums will be at their lowest, allowing you to afford a comprehensive plan. You can also get additional coverage, like maternity insurance, and serve its waiting period if you plan to start a family later on.
Buying in Your 30s: At this age, you might be looking for a family health plan to cover your spouse and children. While still relatively affordable, premiums will be higher than in your 20s. You might also want to add critical illness riders as the risk for some diseases starts to increase.
Buying in Your 40s and 50s: If you wait this long, your premiums will be significantly higher. You'll likely need a higher sum insured to account for increased health risks and financial responsibilities. At this stage, you may have developed lifestyle-related ailments, which means you'll need to opt for wider coverage, including critical illness benefits.
Buying after 60: After the age of 60, premiums are at their highest. You'll likely require a senior citizen health insurance policy, which offers specialized coverage for age-related health issues but comes with a hefty price tag.
In India, there are specific age limits for purchasing health insurance policies.
Minimum Age: The minimum age for an adult to buy health insurance is 18 years. For children, the minimum age is usually 91 days, though some plans may cover newborns from as early as one day old.
Maximum Age: There is no maximum age limit for buying a medical insurance policy in India.
The general takeaway is that the sooner you buy health insurance, the better off you'll be financially and in terms of the quality of your coverage.