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Business News/ Brand Stories / What is the best age to purchase a health insurance plan?

What is the best age to purchase a health insurance plan?

When is the right time and age to invest in a health insurance policy? If this question is bothering you, then read this article to get some clarity.

What is the best age to purchase a health insurance plan? Premium
What is the best age to purchase a health insurance plan?

If you are someone who has been contemplating for a while, whether you need health insurance or not, sooner or later you will realise that health insurance is not an option but a necessity. However, when is the ideal time or age to invest in a good health insurance policy – this question depends on a lot of factors, like, your healthcare needs, financial security, long-term planning, family requirements and other objectives. Having health insurance ensures financial coverage during a crisis and peace of mind too. Now, to understand when is the right time to invest in health insurance plans, let’s delve deep into getting a better understanding of the subject.

Why do you need health insurance?

Health insurance plans serve as a vital safety net, providing financial protection against the potentially exorbitant costs of medical care. It offers access to a range of healthcare services, including preventive care, diagnostic tests, treatments, and cashless hospitalization, without imposing financial strain on individuals and families. It safeguards your finances and mitigates the risk of catastrophic medical expenses that could otherwise jeopardize financial stability depleting one’s savings during a medical emergency.

Things to consider while investing in a health insurance plan

1. Individual Health Needs: One of the primary considerations in deciding when to purchase health insurance is your health needs. While it's never too early to prioritize health insurance, if you have pre-existing medical conditions or a history of chronic illnesses you may benefit from acquiring coverage at a younger age to ensure access to comprehensive healthcare services once the waiting period is over.

If you are thinking of including your family in your healthcare plan, the sooner you do it the better. In fact, opt for one while you start a family and include your parents too. However, including senior citizens can affect your premium in a family health policy as it is calculated considering the age of the eldest member included in the plan. If you don’t wish to pay a high premium on your plan, consider exploring health insurance for senior citizens.

2. Chalking out financial goals: Health insurance plays a crucial role in defining your financial goals as it safeguards your savings during an emergency or planned surgery. So, if you are someone who plans long-term, invest in health insurance early opting for basic coverage with lower premiums. As you age, you can enjoy the benefits of no claim bonus and preventive health check-ups during renewal of the policy. If you are someone who falls in the higher income groups invest in more comprehensive health insurance plans with broader coverage and lower out-of-pocket costs.

3. Introspect your responsibilities: A need for health insurance might differ depending on which stage of life you are in and what are your priorities. While having health insurance should be paramount for an individual, young adults who are transitioning from college to the workforce may have financial constraints compared to individuals who are starting a family or approaching retirement. Your decision to purchase health insurance may be driven by life events such as marriage, childbirth, or changes in employment status that impact insurance eligibility and coverage needs. Nevertheless, the sooner you get yourself and your family a health insurance policy the better.

4. Think beyond Employer-Sponsored Coverage: Many think group health insurance plans which are a part of their employee benefits package might be enough for them. But once you change the company, the benefits might not be applicable for you so investing in a health insurance plan for additional support and security alongside your employer-sponsored coverage is a wise call.

So, when is the right time to invest in health insurance?

While the optimal age to purchase health insurance varies depending on individual circumstances, there are several advantages to acquiring coverage at a younger age. Ideally, invest in a basic individual plan once you get your first pay-check. Here are a few benefits of doing this:

1. Lower Premiums: Younger people typically have to pay lower health insurance premiums due to their lower risk profile and fewer health concerns. By getting coverage early, you can lock in lower premiums and potentially save on long-term insurance costs.

2. Coverage for Pre-existing Conditions: Acquiring health insurance at a younger age ensures coverage for any future pre-existing conditions that may develop over time. Waiting until later in life to purchase insurance may result in coverage limitations or exclusions for pre-existing conditions, leaving you vulnerable to high medical expenses.

3. Establishing Coverage Continuity: Maintaining continuous health insurance coverage from a young age helps establish a track record of consistent coverage, which can be beneficial in securing affordable insurance rates and access to comprehensive healthcare services later in life.

4. Access to Preventive Care: Health insurance plans often cover preventive care services such as routine check-ups, screenings, and vaccinations at no additional cost. By accessing preventive care early, you can identify and address potential health issues proactively, leading to better health outcomes and reducing long-term healthcare costs.

Take home message  

Determining the best age to purchase a health insurance plan is a highly individualized decision influenced by factors such as individual health needs, financial stability, life goals, and more. While there is no one-size-fits-all answer, acquiring health insurance at a younger age offers several advantages, including lower premiums, coverage for pre-existing conditions, continuity of coverage, and access to preventive care services. However, individuals of all ages can benefit from prioritizing health insurance coverage to protect their health and financial well-being in the face of unexpected medical expenses. So, before investing in a health insurance plan choose one that gives you comprehensive coverage and meets your needs.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. The article does not constitute financial advice.

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Published: 05 Mar 2024, 01:13 PM IST
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