When is the right time to get health insurance?

Having an active health insurance policy will help an insured member get adequate and timely healthcare treatments and services in India. Health insurance covers the hospitalisation expenses incurred by an insured member during the policy period. With a valid health insurance policy, one can make 2 types of claims - cashless claim and reimbursement claim. Most health insurance policyholders opt for cashless facility at one of the network hospitals of the insurance provider so as to avoid paying the hospital bills out of his or her pocket.

There are different types of health insurance plans - group health insurance, individual health insurance, family floater plan, senior citizen health insurance, etc. Before choosing a health insurance plan, it is important to assess one's insurance needs. To do that, take your age, medical history, and current and future healthcare needs into account. Though at a young age, when one is healthy and less likely to require constant healthcare, it is easy to be blase about the need for a health insurance policy. However, there are some compelling reasons why it is important to invest in a health insurance policy in your 20s:

• Most companies provide a group health insurance cover also known as employee health insurance to their employees regardless of their age or medical condition. As long as an individual is in the employ of the organisation, he or she is eligible for group health insurance cover. However, it may not be sufficient to meet one's hospitalisation expenses. Also, if a person where to leave the organisation and move to a different one, the group health insurance cover will be discontinued. Therefore, it is advisable to consider purchasing an individual health insurance policy to receive adequate health cover.
• With the steady rise in healthcare costs and the number of lifestyle diseases, health insurance cover has become a necessity for all. We lead a sedentary lifestyle, therefore, the chances of developing a lifestyle disease are high. When choosing sum assured, most policyholders fail to take medical inflation into account. It is important to consider the cost of healthcare further down the years when choosing the sum assured of your health insurance policy. Choose a high sum assured to get an adequate health cover so that all your medical expenses are well-covered in your old age when you need it the most.
• Health insurance plans have a standard waiting period of 30 days, after the completion of which the policy benefits will become active. Except for hospitalisation as a result of accident, no other medical conditions or expenses are covered during the waiting period. In the case of pre-existing conditions, there is a 4-year waiting period after which the insured member will be covered for pre-existing ailments. Similarly, in the case of critical illness cover, there is a 90-day waiting period during which if the insured member is diagnosed with any of the specified critical illnesses, he or she will not receive the benefits. Given the long waiting period for different types of health insurance covers, it makes sense to purchase a health insurance policy early on so as to make use of the cover at your hour of need.
• Similar to motor insurance, general insurance companies offer No-Claim Bonus (NCB) to policyholders for every claim-free year at the time of policy renewal. At a young age, when one is hale and hearty, there are less chances of making a health insurance claim. Thus, the policyholder can accumulate several No-Claim Bonus over the years which can then be used to increase the Sum Assured or reduce the insurance premium.
• To get maternity cover, an individual has to plan ahead. Maternity benefits are available after a long waiting period. If an individual has plans of starting a family, the maternity benefit cover has to be purchased in advance.
• Senior citizen health insurance plans can be restrictive in terms of pre-policy medical tests, higher premium, lower coverage, higher health risks, copayments and sub-limits. As one grows older, the chances of eligibility for most health covers available on the market are lower. Therefore, make a smart choice to invest in a health insurance policy in your 20s.
• After the Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for insurers to provide health insurance policy with lifelong renewability option, there is no point in delaying the purchase of a suitable health insurance cover. You get to enjoy lifelong renewable features and benefits when you purchase health insurance at a young age.

The importance of health insurance is such that most governments in the world provide free health cover to its citizens. The central and state governments of India provide health insurance to those in the Below Poverty Line (BPL) category and the unorganised sectors, If you dont have any, We recommend you to check and buy the best for you in bankbazaar India. Many youngsters think that purchasing health insurance is not as important as buying life insurance, which is a mistake, which is a mistake. When planning your finances, don't let the need for health insurance be your last priority when in fact it has to be the first. It is better to be financially prepared for any eventuality so as to avoid any hassle in times of need.