Health Insurance for Young Adults in India

Why Young Adults Should Buy Health Insurance in India?

Rising health risks among young adults make health insurance important. According to data collected from hospitals across India between 2020-2023, 50% of heart attack patients in India are below 40 years old. The increasing number of cardiac arrests in young individuals is alarming, and experts link this to stress, sedentary lifestyles, poor diets, smoking, and alcohol consumption.

Not only this, almost 20%-40% of young people in India need hospitalisation for serious illnesses, highlighting the need for financial protection against unexpected medical expenses. Here are the top reasons highlighting the importance of buying a mediclaim policy for young adults:

• Pays for Medical Expenses: Under mediclaim plans, health insurance companies pay for planned and unplanned medical expenses, covering a wide range of procedures and treatments, including day care procedures, OPD costs, modern treatments, etc.
• Better Coverage Options: Buying a mediclaim insurance policy at a young age means better coverage options than purchasing it later in life when health risks increase.
• Tax Benefits: Investing in a medical policy helps you save money through tax deductions on health insurance premiums paid under Section 80D of the Income Tax Act, 1961.

How Much Health Insurance is Enough for Young Adults in their 20s and 30s?

If you are in your 20s or 30s and living in a non-metro city in India, then a family floater health insurance policy of sum insured ranging between ₹5 lakh to ₹10 lakh would suffice to meet a medical emergency.

On the other hand, if you fall in the same age group but live in a metro city, then you should consider investing in a health policy that offers coverage between ₹15 lakh to ₹20 lakh. This sum insured amount will be sufficient to cover the cost of availing best treatment without the need to pay anything from your pocket. Remember, a mediclaim policy with a sum insured of ₹5 lakh is not advisable in metro cities.

Here is an example to put things into perspective:

With rising healthcare costs in India, even a 4 to 5-day hospitalisation for a common illness is enough to put a dent in your savings. And if we take into consideration any of the critical illnesses like kidney failure, heart attack, stroke, and cancer, it can easily cost you around lakhs and ruin your lifetime savings.

So, to be able to meet such a high cost of treatment, taking a health insurance cover of at least ₹10 lakh or above will prove to be beneficial.

Why is it Important to Buy a Health Insurance Plan at a Young Age?

It is important to buy a comprehensive health insurance plan in your 20s or 30s because of the following reasons:

• Lower Premiums: Health insurance premiums are significantly lower when you are young and healthy, as the risk of illnesses is minimal. This allows you to lock in an affordable premium for years to come.
• Complete Waiting Period Sooner: Most medical insurance plans generally have a waiting period of up to 3 years for certain treatments and pre-existing diseases (PEDs). Buying a policy early ensures you complete this waiting period while you are still in good health, allowing hassle-free health insurance claims when needed.
• More Comprehensive Coverage: Young policyholders often enjoy wider coverage benefits, as restrictions like sub-limits and extended waiting periods primarily apply to older applicants. Additionally, many insurers offer extra benefits such as OPD coverage, maternity insurance, and wellness programs to younger customers.
• No Pre-policy Medical Check-ups: When purchasing a health policy at a young age, you probably do not need to undergo any pre-policy medical check-ups, making the policy purchase process hassle-free and quick.

Things Young People Should Consider Before Buying a Health Insurance Policy

If you are a young individual who is looking forward to buying a health insurance policy, there are a few things that you need to be aware of before you make a final decision. Listed below are certain important factors that you need to keep in mind before buying a health policy:

• Decide on the type of policy required: individual health insurance policy or a family floater policy.
• Assess your healthcare requirements and decide on the policy duration, i.e. 1 year, 2 years, or 3 years.
• Check the Claim Settlement Ratio (CSR) of the insurer, which should ideally be more than 90%.
• Check the waiting period for different illnesses before you can start filing the claims.
• Carefully review the policy document to ensure it covers hospitalisation expenses, maternity expenses, day care procedures, etc., and offer add-on cover options.
• Verify whether the insurer offers a cashless health insurance facility.
• Evaluate the sum insured and compare it with the premium charged.
• Do check the list of policy exclusions to know what is not covered under your health policy.
• Ensure the policy offers a No Claim Bonus (NCB), which typically ranges between 10% to 100%, depending upon the plan.
• Avoid selecting a policy solely based on a low premium, as it may not provide sufficient coverage. Instead, opt for a plan that offers the right balance between coverage and premium amount.
• Choose a policy that includes a free look period, allowing you to decide whether to continue or cancel it.

Now that you are aware of what all you need to keep in mind, remember to take these points into consideration before you buy a health insurance plan for young adults online. Also, there is no doubt that an early investment in health insurance will benefit you a lot in the long run.