Why Young Adults Should Not Delay Buying Health Insurance

Young adults reviewing health insurance documents, symbolizing the importance of buying coverage early for financial security and protection against medical expenses.

Table of Contents

1. Summary

2. Introduction

3. The Misconception: “I’m Young and Healthy, I Don’t Need Insurance”

4. Rising Healthcare Costs in India and Globally

5. Benefits of Buying Health Insurance Early

6. What Happens If You Delay?

7. Case Study Examples

8. Tips for Young Adults Choosing the Right Health Insurance Plan

9. FAQ's

Summary

Many young adults postpone purchasing health insurance, assuming they are too healthy to need it. But waiting can be a costly mistake. From skyrocketing healthcare expenses to unexpected medical emergencies, delaying health insurance exposes young professionals to financial risks. Buying early ensures lower premiums, longer coverage, and critical benefits like waiting period completion and tax savings. This blog explains why health insurance is not just a safety net but a smart financial move for every young adult.

Introduction

At 25, health insurance often feels unnecessary. Most young adults think: “I’m fit, I exercise, I don’t need coverage right now.” But the reality is—medical emergencies don’t come with a warning. An accident, lifestyle disease, or sudden hospitalization can wipe out your savings overnight.

Healthcare costs are rising at double the rate of inflation, making medical treatments unaffordable without financial protection. This is why delaying the purchase of health insurance is one of the most common financial mistakes young professionals make.

The Misconception: “I’m Young and Healthy, I Don’t Need Insurance”

Youth often equals good health, but it does not equal immunity. Lifestyle changes, sedentary jobs, and increasing stress levels mean that illnesses like diabetes, hypertension, and heart conditions are being diagnosed much earlier than before.

Moreover, accidents, viral infections, and even minor surgeries can lead to hospital bills in the range of ₹50,000 to ₹5 lakh or more. Without insurance, this financial burden falls entirely on you or your family.

Rising Healthcare Costs in India and Globally

According to IRDAI reports and insurance industry data:

• The average hospitalization cost in India rose by nearly 15% over the last decade.

• A single hospital stay for dengue, appendicitis, or gallbladder surgery can cost ₹1–3 lakh in a mid-range hospital.

• Advanced treatments like cardiac surgery or cancer therapy can exceed ₹10–15 lakh.

With medical inflation rising at 10–12% annually, delaying health insurance means you risk being underprepared for even basic healthcare expenses.

Benefits of Buying Health Insurance Early

1. Lower Premiums

Premiums are calculated based on age and health risks. Buying a policy at 25 may cost you half of what the same plan will cost at 35. Locking in low premiums early saves money in the long run.

2. No Claim Bonus Accumulation

Most policies reward you with No Claim Bonus (NCB) for every claim-free year. The earlier you start, the more bonus coverage you accumulate without extra cost.

3. Waiting Period Benefits

All health insurance policies have waiting periods for pre-existing diseases (typically 2–4 years). Buying young ensures these waiting periods are completed long before you may develop age-related conditions.

4. Tax Savings

Under Section 80D of the Income Tax Act, you can claim up to ₹25,000 per year for health insurance premiums. Buying young means you enjoy tax benefits right from the start of your career.

5. Mental Peace & Financial Security

Health insurance ensures you never have to compromise on quality treatment due to financial constraints. It allows you to focus on recovery, not bills.

What Happens If You Delay?

Delaying health insurance until your 30s or 40s can lead to:

• Higher Premiums: Premiums rise significantly with age.

• Rejections: Insurers may reject your application if you already have medical conditions.

• Longer Waiting Periods: If you develop conditions like diabetes or hypertension, waiting periods mean you may not be covered when you need it most.

• Financial Stress: Emergencies may force you to use credit cards, loans, or savings—impacting long-term financial goals.

Case Study Examples

Example 1:

Rohan, 26, bought health insurance for ₹6,000 annually. By 32, he had accumulated a 50% No Claim Bonus and paid lower premiums throughout. When he needed surgery worth ₹2.5 lakh, his policy comfortably covered it.

Example 2:

Anita, 28, decided to wait until she was “older.” At 34, she was diagnosed with PCOS and thyroid issues. When she applied for health insurance, her premium was 40% higher, with a 3-year waiting period on those conditions.

Tips for Young Adults Choosing the Right Health Insurance Plan

1. Choose adequate coverage: At least ₹5–10 lakh sum insured, considering rising costs.

2. Look for cashless hospital networks: Wide coverage ensures smooth hospitalization.

3. Consider riders: Add-ons like critical illness cover, maternity, or accidental coverage.

4. Check waiting periods: Shorter is better.

5. Review claim settlement ratio of the insurer before buying.

FAQ's

1. Is health insurance cheaper if I buy it when I’m young?

Yes, health insurance premiums are generally lower when you buy a policy at a younger age because insurers see young people as low-risk. As you grow older, premiums increase due to higher chances of health issues.

2. What are the benefits of getting health insurance early?

When purchased early, you enjoy lower premiums, accumulate waiting period benefits (for pre-existing diseases or maternity cover), and have access to financial protection in case of unexpected medical emergencies.

3. Can I upgrade or change my health insurance later?

Yes, most health insurance plans allow you to upgrade or enhance coverage later. However, starting young ensures you already have a base policy in place, making upgrades easier and more affordable.