As we grow older, we realise the importance of good health. Another realisation that often follows this is the fragility and uncertainty associated with your health. In order to protect yourself against a myriad of health-related risks, it is advisable to purchase a health insurance plan. 

The best time to buy health insurance is always yesterday, which means you are already running late. Ideally, you should buy a suitable medical insurance plan as early in life as possible, preferably in your twenties or thirties, when you have fewer health-related issues than later in life. Buying health insurance early in life can help you get the best health insurance plan at a relatively low premium. 

How Health Insurance Works

Health insurance policies are insurance plans through which an insurance company agrees to provide you with financial protection for the medical expenses that may arise from an emergency or an unfortunate event. In exchange for this cover, you have to pay a health insurance premium.

If you are wondering how health insurance works, you should know that using your health insurance benefits is fairly simple. With a health insurance plan, you can get cashless treatments at the network hospitals of your health insurance provider. You can also choose to get treatment at a non-network hospital and file a reimbursement claim for the associated medical bills. 

Why Should Buy Health Insurance Before Turning 30

If you think that you are too young to buy health insurance just yet, think again. Diseases and accidents do not discriminate based on age and strike as and when they want to. This is why you should consider purchasing a health insurance plan before you turn 30. 

1. Low age means low health insurance premium: 

Your medical insurance premium is heavily dependent on your age at the time of purchasing the plan. This is because when you are young, you are not affected by many illnesses and medical issues. This is why health insurance companies will not see you as a high-risk policyholder.

Therefore, purchasing a medical insurance plan when you are young and healthy can help you get one at a lower cost as compared to plans bought at a later age. If you procrastinate on the purchase of health insurance, your insurance cost is bound to go up.

1.  A sedentary lifestyle may be a cause for diseases: 

Your stressful jobs and hectic schedules have the ability to cause a severe impact on your health. This can lead to several lifestyle disorders in young individuals, including obesity and depression. Moreover, a lifestyle that is driven by stress and minimal physical activity makes you more prone to having high levels of cholesterol, diabetes, and heart disease. 

Medical issues like these at a young age can heavily impact your financial and physical well-being. Therefore, it is important to ensure that you have a suitable health insurance plan. 

1. A group health insurance plan may not be sufficient: 

These days, employers offer group health insurance to their employees. Group insurance policies offer coverage to the employee and their family. While the coverage from these group plans can be quite beneficial, it is very basic and does not cover a lot of medical conditions and health insurance benefits. 

What is more, is that such medical insurance coverage ceases to exist once you leave the organisation. Therefore, it is important to ensure that you have a health insurance policy that is structured to offer you coverage based on your insurance requirements.

1. It helps with your financial planning: 

While a health insurance plan can offer you protection against several medical emergencies, it can also help you with your financial planning. For example, a health insurance plan covers medical expenses arising out of accidents. This way, your hard-earned money and savings. 

In addition to the above, you also get tax benefits on the premiums that you pay for your health insurance policy. Under Section 80D of the Income Tax Act, 1961, health insurance premiums can help you get a tax deduction of ₹25,000, and ₹50,000 if you are a senior citizen. You can also claim a tax deduction for the health insurance premiums paid for your parents’ health insurance plan.

1. You can benefit from additional coverage: 

In health insurance plans, there are certain covers to avail which you have to wait for a specific waiting period. This includes the cover for pre-existing diseases and critical illnesses. At a relatively younger age, you may not need these health insurance benefits. 

However, at an older stage in life, you may need them and may not be able to access the features because of a waiting period. Therefore, you must buy a health insurance plan as early as possible to be able to use it when necessary without having to wait for the waiting period for certain covers to expire. 

Conclusion

Buying a health insurance plan is one of the best ways to financially protect yourself from unpredictable (accidents) as well as foreseeable (family history of a disease) health-related events. It is prudent to purchase a health insurance plan as soon as possible, preferably when you are young. 

If you purchase health insurance before you turn 30, you get various medical insurance benefits at a low premium. Purchasing a health insurance plan later in life, on the other hand, can lead to a higher insurance cost. 

Becoming a parent is a beautiful feeling. It may be one of the most joyous occasions of your life and an important milestone that you would cherish for the rest of your life. The arrival of a newborn baby in the family brings excitement and joy to all.

At the same time, childbirth brings a new set of responsibilities. As a parent, you must take care of so many things, from providing the best health care to adjusting your usual route for baby’s healthy growth. Besides, you must also start thinking about their insurance needs and consider adding them to your existing family health insurance policy. This way you can secure their health and get the best medical care without worrying about the cost involved.

How to buy health insurance for a newborn baby?

Buying a health insurance policy for a newborn baby is different from buying a policy for adults. You must consider specific factors, which are discussed below.

• Waiting period

All health insurance policies have a waiting period. It is the duration when the insurance company is not liable to honour the claim. The waiting period may differ from insurer to insurer. Once the waiting period is over, the newborn baby will qualify for protection. When you compare the different insurance policies, make sure that you choose a policy that has the lowest waiting period so that your newborn gets protection from unforeseen illnesses.

• Coverage

Generally, most insurers provide health insurance cover to newborn babies after they attain the age of 90 days. But you can look at plans that provide coverage for the babies at the earliest so that if the baby is diagnosed with any specific condition during childbirth, you can get coverage for the same. Also, you must be sure about the coverage amount offered to the newborn as it may vary from one insurance company to the other.

• Premium

 If you want to add your newborn baby to the existing family health insurance plan, the insurer may ask you to furbish the baby’s medical records before extending the protection. This is mainly done to check if the baby has any medical conditions or pre-existing illness.

After the insurance company verifies all the records and documents, based on the findings, they determine the premium for the newborn. Some insurance companies extend the coverage to the newborn child as an extension of the family health cover without any additional cost. 

• Group insurance

If you are a salaried individual and are covered under your employer’s group health insurance policy, you can get coverage for the newborn child. To add the baby’s name to the policy, you must fill an application form and comply with the documentation process.

However, before you initiate the process, it is better to confirm with your HR (Human Resource) officials about the policy terms and whether it covers the newborn as some organisations limit health insurance cover only to an individual.

• Read the terms and conditions

While you buy health insurance for your newborn child, it is vital that you go through the terms and conditions before signing the papers as the terms vary from insurer to insurer. If you don’t understand anything, it is better to seek clarification and ensure you are fully aware about critical things like inclusions, exclusions, sub-limits, waiting periods, etc.

Final Word

While parenthood and the thought of bearing new responsibilities may seem overwhelming, comprehensive health insurance gives you the much-needed financial support that makes the journey much smoother for you and your baby.