With the increasing medical cost, health insurance plans have become an ultimate necessity. And it necessitates health insurance for people of all age groups — both the young and the old. As a result, insurance providers offered different types of customisable health insurance plans to enhance coverage based on individual needs.
Apart from the financial benefits, individual health insurance plans combine a few other perks, particularly for 20-35 year old people. But to get the best combination of perks, you should always compare health insurance plans. Comparing plans can also help you save money on insurance premiums.
But before we get started, let us understand what individual health insurance plans mean.
What Is An Individual Health Insurance Policy?
An individual health insurance policy is a type of health insurance plan that provides financial coverage to pay for health-related expenses specific to the individual insured. Therefore, the entire insured amount will be used to manage the medical expenses solely for the individual.
Some of the key features of an individual health insurance policy are:
- Individual coverage
- Extensive sum assured
- Customisable options for tailor-made individual health insurance plans
- Varied add-on cover options, including critical illness cover, maternity benefits, etc.
Benefits of Individual Health Insurance For 20-35 Year Old Individuals
- Increasing health issues and broader coverage
People aged 20-35 have become vulnerable to serious illnesses such as cancer, diabetes, etc., considering the recent lifestyle changes and practices. For instance, people working for extended hours in the IT sector and not having sufficient workout routines and a healthy diet are bound to get affected by heart-related disorders or face obesity-related issues.
In such scenarios, the individual health insurance plan can provide broader coverage based on the individual needs, such as in-hospitalisation, pre and post-hospitalisation, daycare procedures, etc.
- Lower premium
The premium for the health insurance policy will be based on factors such as age, gender, pre-existing illnesses, etc. Therefore, compared to older individuals, people in the age group between 20 and 35 years of age will have lesser or no health complications and pre-existing illnesses. Therefore, the premium is lesser for the applicable extensive and broader health insurance benefits for individuals.
- Easy ride through waiting periods
One of the main considerations for availing certain specific health insurance benefits is the waiting period. At an early age, individuals can easily surpass the waiting period without making any claims to benefit from the coverage when they are in extreme need. It is because, at an early age, they are highly unlikely to suffer from a specific disease or an illness for an extended period.
- No medical tests required
Generally, people aged 20-35 years old may not be required to undergo a medical screening to purchase health insurance plans unless they are not affected due to a pre-existing illness. Therefore, the process to avail of the policy benefits get simple and hassle-free, especially when they buy health insurance online.
- Make multiple claims
At a younger age, people may be susceptible to different types of health issues that are not major and require a large part of their sum assured compared to older individuals. Therefore, they can initiate claim requests for each instance and benefit by making multiple claims until the sum assured gets depleted.
- Tax benefits
Tax benefits of health insurance in India are remarkable. Premium paid for the health insurance policy will qualify for a tax deduction of up to ₹25,000 under Section 80D of the Income Tax Act of 1961.
Moreover, individuals can also avail of an additional tax deduction benefit for the premiums paid of up to ₹25,000 for their parents less than 60 years of age and ₹50,000 if they are above 60 years of age.
Conclusion
While purchasing health insurance plans is common among older individuals, it is becoming increasingly important for younger individuals, especially in the age group 20-35. Due to the rising health issues and inflated medical costs, people are becoming more aware of their health requirements.
Health insurance for younger individuals is important. They provide individual coverage, higher sum assured, and customisable features. In addition, they can pay lesser premiums, surpass waiting periods easily, and avoid going through the medical screening processes to access health insurance coverage when in extreme need!