When we should buy health Insurance?
Health Insurance is a core financial product to avoid, unexpected shocks to our financial health.
- When we are still healthy: If any hospotalisation or health deterioration like even BP or Diabetes, there will be loading (additional premium). The bad thing is this loading will be for life. And the worst thing, if risk is higher, insurance companies may not accept the risk and not provide cover.
- When Young: This is because health insurances will have waiting period from 2 to 4 years for specific diseases and pre-existing diseases. The earlier we complete the waiting period, the safer we will be.
- Before hitting age 45: There is something internally happens at the magic age of 45, resulting in higher probability of hospitalization after 45. To compensate higher risks, insurance companies raise premium by 30-45% after turning 45.
- Border ages: Health insurance premium will be same for age bracket of 5. Meaning, between 35-40 years, same premium. 40- 45 another premium (higher), 45-50 another bracket. Etc. If we are at border of the age, it is benefitial to buy multiyear premiums at once to save significant cost.
- There are other criterias, like sublimits, copayment, number of network hospitals, claim settlement ratio etc.
So, health insurance buying needs good homework and quick action. Just online comparison may not be sufficient.
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