What is the Right Age to Purchase a Health Insurance Policy?

Should You Buy Health Insurance At a Younger Age?

Yes. You should definitely buy a health insurance plan at a younger age, i.e. in your 20s or early 30s. If you can afford it, you should buy it as soon as you turn 18 years old. Take a look at some of the reasons why buying health insurance at a younger age is a great idea:

1. Lower Premiums

   Your age is one of the most important factors that determine your health insurance premium. Insurance companies consider younger people healthier and a lower liability for them. On the contrary, older people are more vulnerable to ailments and, thus, are a greater liability to insurance providers. As a result, the lower is your age, the lower will be your premium amount.

2. No Pre-policy Medical Check-ups

   If you apply for a mediclaim insurance policy at a younger age, you will not have to undergo a medical check-up before buying the policy. This prevents the insurance company from discovering any disease/ medical condition that may increase your premium. But this option is mostly not available for people above 45 years of age, and thus, their premium amount may increase based on their medical check-up report.

3. Easier to Serve Waiting Period

   Every health insurance policy comes with an initial waiting period of 30 days. Younger people are less likely to raise a claim during this period, as their probability of getting diagnosed with a serious medical condition is very low. Therefore, they can wait out the initial waiting period with ease. However, the same cannot be said for elderly people, as they may face a medical emergency within days of buying the policy but will not be able to raise a claim during the waiting period.

4. More Comprehensive Coverage

   As your age increases, you may develop certain age-related issues like diabetes, hypertension, arthritis, etc. If you decide to buy a mediclaim policy at this point in life, your insurer will offer you limited coverage, as you will be a risky customer for them. On the contrary, if you buy a policy in your 20s or early 30s, you will most likely not have any pre-existing medical issues. As a result, you can easily obtain a health policy with a higher sum insured and comprehensive coverage benefits.

5. Earning Cumulative Bonus

   Most medical insurance plans provide a cumulative bonus for every claim-free year. This bonus can be used to enhance your sum insured amount for no additional cost. A younger person is more likely to be fit and may not need to raise a claim every year. Thus, they can easily earn cumulative bonus over the years. However, older people may need to raise a claim owing to their age-related medical conditions, making it difficult for them to earn a cumulative bonus.

6. Financial Freedom

   The basic purpose of health insurance is to pay your medical expenses. With a health policy, you end up saving a lot of money on medical expenditures, especially those arising due to a sedentary lifestyle. Otherwise, you would have to pay for these expenses from your own pocket. Thus, the sooner you buy the policy, the more financial freedom you can enjoy.

You may also read: Health Insurance for Young Adults in India

When is the Right Time to Buy a Health Insurance Policy?

The right age to buy a health insurance policy is in your 20s or early 30s. At this age, you will most likely be in your best health and free of any financial responsibilities of your family. Let us take a look at the outcome of buying a medical insurance policy at different ages below:

1. Buying Health Insurance in Your 20s:

   If you buy a health policy in your 20s, you will be able to pay the premium easily as you will not have any financial pressure. Your premiums will be affordable, allowing you to opt for the best coverage as per your health needs. Besides, you will be able to afford additional coverage, such as maternity insurance and serve its waiting period in case you plan to start a family in the coming years. Moreover, you can earn a cumulative bonus with ease.

2. Buying Health Insurance in Your 30s:

   If you decide to buy a mediclaim policy in your 30s, you will most likely opt for a family health plan. This is because you may be planning to settle down and start a family at this age if you have not already. You might want a policy that covers your spouse and children as well. Moreover, you may want to buy additional covers for critical diseases, such as heart ailments, whose symptoms are known to start showing at this age. Thus, the likelihood of your health insurance premium increasing and raising a claim is greater in your 30s.

3. Buying Health Insurance in Your 40s and 50s:

   If you are thinking of buying a medical insurance policy in your 40s and 50s, you would need to opt for a higher sum insured. Your financial responsibilities will be the highest at this age and you may have developed lifestyle ailments like diabetes, high blood pressure, cancer, etc. As a result, you would have to opt for wider coverage with critical illness cover and benefits like restoration of the sum insured. Your premium will no doubt be very high at this time. Thus, buying an individual policy is recommended over a family floater cover to reduce your premium to some extent but it will still be pretty high.

4. Buying Health Insurance After Turning 60 Years Old:

   If you are buying a health insurance policy after turning 60 years old, you will have to pay a hefty premium amount. You are most likely to face severe health ailments at this age, which may need long-term treatment and hospitalisation. A basic health policy will not be sufficient at this stage of life and you may require a senior citizen health insurance policy. It will come with a higher sum insured and provide coverage for AYUSH treatment, domiciliary hospitalisation, organ donor expenses, etc.

What is the Age Limit for Health Insurance in India?

Take a look at the minimum and maximum age limits to buy health insurance plans:

Minimum Age for Health Insurance in India:

The minimum age limit for health insurance in India is 18 years for adults and 91 days for children in most plans. However, for some plans, the health insurance child age limit is 1 day.

Maximum Age for Health Insurance in India:

There is no limit on the maximum age for purchasing medical insurance policies in India.

How to Buy a Health Insurance Policy Online?

You can follow the steps given below to buy a health insurance policy online:

Step 1: Visit the official website of Policybazaar Insurance Broker Private Limited and tap on the 'Health Insurance' icon.

Step 2: Select your gender and choose the family members you wish to insure. Continue by selecting the age of the selected members.

Step 3: Input your city details and click the 'Continue' button.

Step 4: Enter the medical history of the family members you are including in the plan.

Step 5: Compare & choose the most suitable plan and pay its premium.

Step 6: The policy will be issued in a couple of minutes.

In a Nutshell

The right time to buy a health insurance policy is as soon as possible. The sooner you buy, the better it is for your pocket. Make sure to compare different health insurance plans online on Policybazaar.com to choose the best health plan within your budget.