What is the right age to purchase a health insurance policy?

The concept of any insurance is making an arrangement of collectively covering a risk, where the participants pay a premium to contribute to an insurance pool, from which money is paid to those contributors who suffered due to the unfortunate happening of the insurable event.

If there are higher outflows from an insurance pool, the participants need to contribute more by paying a higher premium and vice versa.

So, to make insurance affordable, it’s very important to have low-risk participants among the contributors.

While young people are more healthy compared to the older people and have lower risks of getting ill, among other benefits of taking a health insurance policy at a younger age, their participation also helps in reducing the health insurance premium and make it more affordable for everyone.

“A health insurance plan is necessary for everyone to cover exorbitant medical costs. You could have heard folks/companies urging you to purchase health insurance when you were younger frequently,” said Rakesh Goyal, Director, Probus Insurance Broker, adding, “Ever ponder the reasons why?”

Goyal suggests the ideal age to buy health insurance and why you must do it sooner rather than later.

What is the Right Age?
The ideal time to purchase health insurance is between 20 to 30. You’ll be in good health at this age and won’t have any financial obligations to your family.

As described by Goyal, let’s check what happens when you purchase health insurance at different ages below:

Between 20 to 30 Years
If you purchase health insurance coverage in your mid-20s, you will have no trouble paying the cost because you won’t be under any financial strain. Because your premiums will be reasonable, you can choose the greatest coverage for your insurance needs. If you want to start a family shortly, you can afford additional coverage, such as maternity insurance, and get through its waiting period. Additionally, you can easily obtain a lifetime renewal option and a cumulative incentive.

When the Responsibilities Come Knocking
If you decide to purchase health insurance in your thirties, you can probably choose a family health plan if you haven’t already. Furthermore, if you consider starting a family at this age, you might need coverage for your spouse and kids as well. Additionally, you might want to purchase extra coverage for illnesses like heart conditions, whose symptoms are known to manifest around this age. As a result, the risk of your health insurance premium rising and a claim being filed is higher as you age.

During Your Middle Age
In your forties and fifties, you should consider purchasing health insurance with higher coverage. At this point in your life, you will have the most financial responsibility and you are highly prone to health issues like diabetes, high blood pressure, etc. You might therefore need to get broader coverage that includes critical sickness and sum insured enhancement features. Without a doubt, your premium will be on the higher end at this time. You can choose family floater coverage to partially lower your rate, but it will still be quite pricey.

At Retirement Age or Beyond
After turning 60, you will have to pay a hefty premium if you want to purchase a health insurance policy. At this age, you are more susceptible to serious health issues that can require hospitalisation and long-term therapy. You could need senior citizen health insurance coverage at this point in your life because a standard health policy won’t be adequate. They will include coverage for AYUSH therapy, in-home hospitalisation, organ donation costs, etc., and come with a bigger sum insured.

“For a stress-free and financially secure life, health insurance is a necessity. It doesn’t matter how old you are, good health insurance makes sure your following life is spent well. While you must buy insurance whenever you can, it is highly recommended that the earliest possible period is the ideal time to purchase a health insurance plan. As soon as you touch 20 years, you should get health insurance if it fits into your budget. Moreover, your wallet will benefit more if you buy early. It is as simple as that,” said Goyal.