Advantages of acquiring insurance at an early age
With the current pandemic situation and lifestyle choices of individuals, buying health insurance has never been more important. It is absolutely critical for a person to buy health insurance for himself and his family.
However, insurance premiums can be a slight hiccup when a person is looking to buy insurance. How can a person buy insurance and not pay a high premium at the same time? Can it be done? Absolutely!
Let us have a look at some of the advantages of buying insurance at an early age.
Advantages of buying insurance at an early age
The earlier you buy, the cheaper the premium
If you’re looking to get insured for a relatively low premium, then buying insurance early is the way to go. Insurance company premium slabs vary as the policyholder’s age increases. Let us understand this with an example.
Mr. Jayesh (25 years old) wants to buy a health insurance policy with a coverage of Rs 10 Lakhs from Manipal Cigna Health Insurance. The company quotes him a premium of Rs. 10 thousand a year for the coverage.
Mr. Mukesh (55 years old) wants to buy the same health insurance policy with the same coverage. The company will now quote him a price of Rs 25 thousand per year for the coverage.
As you can see, buying insurance early can massively reduce the premium costs.
No health check-up for young buyers
Insurance companies generally do not insist on a health check-up from younger customers. This can make buying health insurance really simple for younger people. As the customer’s age goes up, the insurance company can insist on a comprehensive health check-up of the customer. If you want to avoid this, buy a policy early on in your life.
Insurance companies are generally hesitant to provide high coverage to older customers. If the age of the customer is relatively young, he/she can get the benefit of higher coverage for a lower premium. The coverage amount is usually lower for customers buying policies after 60 years of age.
Avail tax benefit for longer duration
If you buy insurance at an early age, you can avail of tax benefits under Section 80D of the I.T Act for a longer duration. This will reduce your overall tax liability greatly over the coming years.
There is a chance that your insurance company will exclude coverage of any pre-existing conditions if you are at an advanced age. To avoid this issue, a customer should ideally buy a health plan early on in their life. Doing so will ensure that the insurance company will provide coverage to any pre-existing condition that the customer may be suffering from.
Companies will generally accept your application easily if you are young
Companies generally accept your insurance application very easily without any scrutiny if the customer is young. If you want to avoid company scrutiny buy insurance early.