Your 20s are very often the time of your life when you are healthy and have few medical bills. This is, however, the best time to invest in health insurance. Premiums are low when you are young, and it ensures you are protected against unforeseen medical costs. You will not be left with financial setbacks in emergencies and it will help you build a no-claim bonus for future benefits.
Factors to Consider While Choosing Health Insurance
1. Widespread Coverage
Align yourself with a plan that gives widespread coverage, such as: - Hospitalisation- Both before and after treatment - Day care procedures and surgeries - For critical illnesses or chronic diseases - Others may even cover mental health treatments and alternative treatments, such as Ayurvedic and homoeopathic treatments, all dependent on your preference.
2. Cheap Premiums
Premiums are tightly tied to your age and health, so buying insurance in your 20s locks in cheaper rates. Compare rates from different insurers, but don't compromise on critical coverage for affordability's sake.
For instance, if you opt for a Rs 5 lakh cover through a basic plan when you are in your 20s, it may cost around Rs 6,000. The same cover can cost one Rs 12,000 or more in their 30s.
3. Cashless Hospital Network
Choose a company that boasts of cashless hospitalization at the maximum number of hospitals. This reduces your need to pre-finance hospitalization at the time of hospitalization and the insurer settles the claims directly with the hospital. Before moving ahead, check if the network includes reputed hospitals in your city.
4. Waiting Periods and Exclusions
Understand the waiting period for pre-existing diseases, which varies from insurer to insurer; it can be anywhere between 1 to 4 years. Also, exclude conditions or treatments not covered by the policy to avoid surprises later. For instance, some plans may not cover maternity benefits, dental treatments, or cosmetic surgeries.
5. Add-Ons and Riders
Customize your policy with riders like:
- Maternity cover
- Room rent waiver (for access to private rooms)
- OPD (Outpatient Department) cover
These add-ons can increase your premiums slightly but provide significant value when required.
6. No-Claim Bonus (NCB)
No-claim bonus rewards you with an increased sum insured for each claim-free year without incurring any additional costs. This really pays to start early, especially since you are less likely to need to make a claim anyway.
How to Compare Plans
Online aggregators are also available for comparison across different insurers. Reviews, claim settlement ratios, and the insurer's customer service responsiveness should be checked. Read the policy document carefully before signing.
Example of Plan for a Young Professional
If you’re earning Rs 40,000 a month, a basic health insurance plan with a Rs 5 lakh sum insured could cost around Rs 500 monthly. This plan might cover hospitalization, ambulance charges, and daycare treatments. Adding a critical illness rider for Rs 1 lakh could increase the premium by Rs 100-150 monthly, providing additional peace of mind.
The Bottom Line
Health insurance doesn't have to be a safety net when choosing it in your 20s but instead a financial tool toward a secure future. This is done by starting early for affordability, comprehensive coverage, and long-term benefits. Consider your lifestyle and risks, then choose a plan that grows with you as your needs do.
