What is the Significance of Health Insurance for Youth
Animesh (22-years-old) completed his graduation and started his career by joining a private firm in Chennai. However, Animesh’s company didn’t offer him employers’ group health insurance when he joined. Animesh also thought that purchasing health insurance plans was unnecessary, as he is young and wholesome. But Animesh was affected by this deadly COVID-19 virus, and he was hospitalized as he developed some serious complications. When he was discharged, the hospital presented him with a bill of Rs. 1.75 lakh for his treatment. Since Animesh didn’t have the best health insurance policy, he paid everything from his hard-end savings. He did not believe that if he had purchased a health insurance policy from some reputed health insurance companies, it wouldn’t hamper his savings.
Here we are going to discuss the importance of health insurance for youths so that people like Animesh can buy health insurance after comparing various insurance plans.
In the 20s the life is full of enthusiasm and excitement. At this phase, most people usually start their career; and they certainly have a plethora of aspirations, targets, and goals that they must fulfill to make a scintillating career. Some of them may have educational loans that they need to pay off from their salaries or savings. But at this phase of life, youngsters often spend exorbitantly on parties, vacations, trips, shopping, etc. This is the most crucial phase of life where these youngsters should learn financial planning for a stable future. Many youngsters have adequate knowledge that they need to keep a certain percentage of money from their salary for savings. It is the time we should focus on the importance and benefits of covering themselves and their family members’ health through a comprehensive health insurance plan.
But very often, these young people shun health insurance policies because of some fallacies or beliefs.
Youngsters are not prone to various health complications; hence, the requirement for health insurance takes a back-seat
Older people or senior citizens are indeed more susceptible to medical complications, and as you grow older, you will suffer much more health complications. But you can’t assume that these youngsters are wholesome and immune to various health-related issues. The pace of lifestyle is changing hurriedly, and it brings a lot of challenges and stresses to everyone’s life. Now, you can’t correlate diseases and age. These days, people of any age can be affected by any disease or injuries. Even in the case of the COVID-19, nearly 21.8 % of youngsters (21-30 years) were affected by this deadly virus. Thus, young people should consider health insurance seriously and must purchase it as soon as possible. When you are healthy and young, your health insurance premium will be on the lower side. But once you grow older and beset by health-related problems, you need to pay a hefty amount for premiums. It becomes challenging to get insurance cover if you are suffering from various health complications. Even if you get it, it might come in a constrained form.
Since young people are single and healthy, health insurance is not a priority for them.
Health insurance is inevitable for everyone, irrespective of their marital status. Most health insurance plans are scalable. This means you can change your cover as per your thriving requirements and needs. A family floater plan allows you to include your spouse, dependent children, and even your parents under the same policy plan.
Corporates also offer employers’ group health insurance, so the youth don’t feel the need to purchase an additional individual health insurance plan.
Corporate insurance coverage is valid until you work for a particular company, and it will be annulled once you leave the organization. But this coverage has a limited sum insured and comes with capping. Under this situation, a young professional should purchase a separate health insurance policy for himself and his family. Additional health insurance will offer continuous coverage at the time of service change. Then, after analyzing your requirements and your family’s needs, you can purchase individual health plans. But employers’ group health insurance is a standard product across the company/grades.
Purchasing health insurance policies is also beneficial for youth people as it will help them save tax under section 80D of the Income Tax law.
A plethora of options are available, ranging from a sum insured of Rs50,000 to Rs. 30, 00,000 and tenure of 1 to 2 years.
Certain things to keep in mind
- First, you must analyze your family’s risk factors because every family member has different requirements based on their age, gender, history of family illnesses, work-life and even geographical location. Hence, you need to evaluate the requirements properly and should provide adequate coverage for everyone.
- Always choose a policy that comes with a cumulative bonus. A cumulative bonus would enhance your sum insured annually if you didn’t raise any claim for a policy year.
- You should have adequate knowledge of sub-limits before making any commitment. If the policy comes with sub-limits, you can only claim a maximum up to the sub-limit amount. If your claim goes about the sub-limit amount, then you need to pay the remaining amount from your pocket.
- While purchasing health insurance policies, always consider medical inflation. Health insurance plays a pivotal role in making a safer future by covering most of the healthcare expenditures. While choosing your policy coverage, consider a 7-10% medical inflation rate in mind.
The above article gave you enough idea why health insurance is important for youngsters. However, before purchasing a health policy, a person should compare various plans and their coverage.