Avoiding Hospitalization isn’t Possible Saving Money with Health Insurance is – 11 Reasons to Invest in One at a Younger Age!

  • December 29, 2017

Health is wealth and it is natural that we do a lot to avoid hospitalization. But is it really possible to do so? Avoiding hospitalization completely is not possible. Some things are simply out of your control.

Late hours, super hectic schedules, rising pollution, fast-paced lifestyles, and food contamination among others have emerged as major concerns, these days. Although, the country has advanced a lot in in offering medical facilities affective overall life expectancy positively, the number of diseases has also been on the rise in the past decades.

Medical inflation has forced many people to rely on health insurance policies so as to avoid heavy medical bills during the times of emergencies. This is important in today’s time because you cannot avoid hospitalization buy can easily save money by investing with health insurance.

Here’s what you need to know when buying a health insurance policy to save money:

1. The Right Time to Invest

Well, this is actually the moment you realize that the health expenses simply escalate in the future due to the overall rise in the cost of living along with several other factors. Ideally, you must invest in a health insurance policy at a young age or as soon as possible to avail of maximum benefits.

2. Low Premium

In many cases, premium amount charged by insurance provider will depends on current age of the applicant. When you opt for a plan at a young age, the company will offer you a lower premium.

3. Tax Benefit

When you invest in a health insurance policy at a young age, you can enjoy tax benefits for a longer period. Under the Income Tax Act of 80D, 1961, you can easily claim premium that you pay as deduction from the total income.

4. Pre-existing Conditions

Investing in a health insurance plan in late 40s or early 50s will simply add to your financial burden and bring in reduced benefits. Most health insurance providers in India exclude several pre-existing conditions from getting covered. This defeats the actual purpose of opting for a health plan.

5. Bonus

Many insurance companies in India offer a ‘no claims bonus’ in case of no claims made in the preceding year of any health policy term. So investing in a plan at a very young age means you can easily avail of cumulative bonus because you are most likely to renew the policy each year. Consequently, the bonus accrued increases your cover amount. This is very beneficial at later stages of life once you get old. The ‘no claims bonus’ may range from anywhere between 5per cent to 100 per cent of total sum insured in most cases.

6. Extensive Options

If you are under the age of 50, you’re in a better position to choose from a wide variety of health insurance plans. In fact, you are free to opt or a plan that best suits your specific needs and budget via assessing all crucial parameters.

7. Lifelong Renewal

Opting for lifetime renewal of your health insurance policy will help you avail of extended cover. As a result, you will be able to enjoy healthcare benefits for your entire life via opting for policy renewal.

8. Eligibility Criteria

If you are young, there’s lower chance of rejection for a health insurance plan. This is because the insurer considers you a young, dynamic individual having several productive years ahead and also fewer health complications. Hence, the chances of rejection of health insurance policy getting are very small.

9. Financial Planning

Investing in a health insurance plan especially at a young age will ensure you a greater coverage. Additionally, it is also a wonderful way to plan your finances in a better way. Having adequate medical cover to take care of health emergencies is crucial. Long-term investments will certainly help.

10. Personal Insurance for Health

Present age is an age of exponential rise in medical expenses. In this age, it is not wise to ignore the importance of a health insurance policy. Your employer may provide health cover but it may not be adequate to cover your costs. Additionally, there is a risk of being uninsured the moment you change job or in the event of loss of employment.

11. The Sedentary Lifestyle

These days, people are suffering from poor health due to sedentary lifestyles. It has increased occurrence of several serious illnesses of lung, heart etc. Having health insurance can help you handle these emergencies wisely.

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