In recent years, the importance of buying a health insurance policy has increased due to the increased incidences of lifestyle-related diseases and rising costs of medical treatments. People have started buying comprehensive medical insurance plans at all ages to protect themselves from the financial burden that can be caused by a medical emergency. Insurance providers offer different types of plans to help people manage such emergencies without breaking the bank. One such plan is critical illness insurance, where the policyholder gets a lump sum if diagnosed with a critical illness as specified in the policy. You can also buy online health insurance from the comfort of your home and office.
When you buy a health insurance plan, you approach an insurance provider, provide your details and get a quote. The cost of the health insurance plan will differ for every individual. While there are many factors that affect the premium calculation of a health insurance policy, age is a major aspect. In this article, we will talk about how age can impact the cost of health insurance.
Do Health Insurance Costs Change With Your Age?
When you buy a health insurance plan in your twenties, you will pay less compared to buying one in your sixties. In simpler terms, the premium of medical insurance plans increases with age. Here are some factors that result in an increase in the average health insurance cost by age:
- Growing old = Health Issues: Typically, human health tends to deteriorate with age. When you are in your twenties, you are usually fit and don’t suffer from lifestyle-related diseases. However, as you age, various organs start developing problems, which result in health issues.
- Higher risk: Since older people are more prone to falling ill, they have a higher possibility of filing a health insurance claim. Therefore, insurance providers look at older people as high-risk policyholders. Hence, they charge a higher premium.
- Pre-existing illnesses: As we age, we tend to develop various health conditions. These pre-existing illnesses tend to increase the premium of health insurance plans.
- Inflation: In India, the inflation rate of medical treatments is around 14%. This means that the costs of medical treatments double once every few years. This impacts the costs of medical insurance too.
The Recommended Approach For Buying Health Insurance
Many people wonder if they should buy a health insurance policy when they are younger since the possibility of needing medical care is minimal. However, with an increase in the number of lifestyle-related ailments, many people have started falling prey to illnesses associated with a sedentary lifestyle. Hence, you need a comprehensive health insurance plan that helps you manage medical emergencies even when you are younger.
Most health insurance plans have a waiting period. When you buy health insurance in your twenties, you have a better chance of getting through the waiting period without needing coverage. However, if you buy one at a later stage, then you might have to work around various chronic ailments that could dent your finances until the waiting period is over.
Therefore, it is prudent to buy a health insurance policy when you are younger and make changes to the coverage as you age.
As you can see, the cost of health insurance will increase as you age. Therefore, it is advisable to buy a comprehensive health insurance policy early in life. Before buying a policy, go through the websites of different insurers and get an idea about the typical health insurance premium by age. This will help you determine the cost you might have to pay based on the coverage you need. Good Luck!