Why Get Term Life and Health Insurance Early
Dear Freshers and People Under 30,
Life is unpredictable, and medical emergencies can wipe out your entire life savings in the blink of an eye.
You might be tempted to spend on credit cards, the latest iPhone, or that dream vacation, but trust me—those things can wait.
Also Read: GST Reduction on Insurance: Impact on Policyholders & Economy
One of the smartest financial decisions you can make while you’re young and healthy is to get health insurance and term life insurance.
Insurance premiums are significantly cheaper when you’re young and free from medical conditions.
Even if your employer provides group health insurance, it may not be enough or might not cover your family.
An individual health insurance policy for yourself and your loved ones is essential for complete peace of mind.
In this article, we’ll explore why getting insured early is crucial, the benefits involved, insights from the Indian insurance market, expert opinions, and common mistakes to avoid.
Key Benefits of Why Get Term Life and Health Insurance Early
1. Lower Premiums
- Insurance premiums are significantly lower when you are young and healthy.
- Companies assess risk based on your age and medical history. Buying early ensures long-term affordability.
- Don’t wait until a medical condition develops—act now while premiums are cheap.
- For example, a 25-year-old buying a term insurance policy for ₹1 crore might pay around ₹500 per month, while a 40-year-old could pay ₹1,500 for the same coverage.
2. Comprehensive Financial Protection
- A sudden medical emergency or unexpected death can drain savings and leave your family in financial distress.
- With both term life and health insurance, you secure your family’s financial future and ensure they won’t struggle financially in your absence.
- Health insurance can cover hospitalization, surgeries, critical illnesses, and even post-treatment expenses.
3. Tax Benefits
- Premiums paid for term life and health insurance are eligible for tax deductions under Section 80C and 80D of the Income Tax Act.
- Under Section 80C, you can claim up to ₹1.5 lakh for life insurance premiums.
- Under Section 80D, you can claim up to ₹25,000 for health insurance premiums and an additional ₹25,000 if buying for parents.
- These deductions reduce your taxable income, offering significant financial relief.
4. Peace of Mind
- Imagine the relief of knowing that no matter what life throws at you, your family is financially secure.
- Instead of worrying about unexpected expenses, you can focus on your goals and aspirations.
- The assurance that your loved ones are financially covered if something happens to you is invaluable.
5. Coverage for Pre-existing Conditions
- Getting health insurance early ensures coverage before the onset of any medical condition.
- Insurers may deny coverage or increase premiums once a condition is diagnosed.
- Common conditions like diabetes, hypertension, and heart issues can make it challenging to find affordable insurance later.
Common Mistakes to Avoid When Buying Insurance
While getting to know more about Why Get Term Life and Health Insurance Early” few common mistakes you should avoid.
1. Relying Only on Group Insurance
- Group insurance provided by employers often has limited coverage and ceases once you leave the company.
- Always complement it with individual insurance policies to stay covered regardless of employment status.
2. Choosing Insufficient Coverage
- Calculate the required coverage based on your lifestyle, debts, and future responsibilities.
- Experts recommend a coverage of 10-15 times your annual income for term life insurance.
3. Ignoring Add-Ons and Riders
- Riders such as Critical Illness Cover, Accidental Death Benefit, and Waiver of Premium can enhance protection.
- Opting for these riders might slightly increase premiums but provides comprehensive coverage.
4. Not Reviewing Policies Periodically
- As your financial situation changes, review and update your insurance coverage.
- Upgrading your policy can be beneficial as your income and responsibilities grow.
Popular Indian Companies Offering Term Life and Health Insurance
1. LIC (Life Insurance Corporation of India)
- Why Choose LIC: Government-backed and highly trusted.
- Popular Plans:
- LIC Tech Term Plan: Pure protection plan with flexible options.
- LIC Jeevan Amar: Customizable term insurance with affordable premiums.
- Claim Settlement Ratio (2024): 98.62%
2. HDFC Life Insurance
- Why Choose HDFC Life: Offers comprehensive coverage and critical illness riders.
- Popular Plans:
- HDFC Life Click 2 Protect: Flexible options and premium waiver.
- HDFC Health Assure: Covers a range of medical emergencies.
- Claim Settlement Ratio (2024): 99.04%
3. ICICI Prudential Life Insurance
- Why Choose ICICI Prudential: High claim settlement ratio and flexible term plans.
- Popular Plans:
- ICICI Pru iProtect Smart: Covers terminal illnesses and accidental deaths.
- ICICI Health Saver: Combines life cover with health insurance.
- Claim Settlement Ratio (2024): 97.80%
4. Max Bupa Health Insurance
- Why Choose Max Bupa: Offers comprehensive health coverage with cashless facilities.
- Popular Plans:
- Health Companion: Covers pre- and post-hospitalization expenses.
- Health Premia: International coverage and maternity benefits.
- Claim Settlement Ratio (2024): 96.95%
Expert Opinions & Market Trends
Financial experts unanimously recommend Why Get Term Life and Health Insurance Early by purchasing insurance early to lock in lower premiums.
A study by Policybazaar found that 70% of young adults regret delaying their insurance purchase as they face higher premiums and reduced coverage later.
According to IRDAI, the insurance penetration rate in India rose from 3.2% in 2019 to 4.2% in 2024, primarily due to increased awareness among younger generations.
FAQs related to Why Get Term Life and Health Insurance Early
Q1: Is it necessary to buy both term life and health insurance?
Yes, both serve distinct purposes. Term life insurance ensures financial security for your family, while health insurance covers medical expenses.
Q2: How do I know how much coverage I need?
Calculate based on your annual income, debts, lifestyle, and future financial goals. Generally, aim for 10-15 times your annual income.
Q3: Can I upgrade my insurance plan later?
Yes, most insurers allow upgrades or add-ons. However, premium rates might increase based on age and medical conditions.
Q4: What is a critical illness rider?
A critical illness rider covers major illnesses like cancer, stroke, and heart disease. Adding it to your base policy ensures a lump-sum payout upon diagnosis.
Q5: What happens if I miss premium payments?
Missing payments may cause your policy to lapse. Many insurers offer a grace period, but it’s crucial to stay consistent with premiums to maintain coverage.
My Final Thoughts
If you’re young and just starting your career, remember that credit cards, gadgets, and vacations can wait.
Prioritize term life and health insurance to build a strong financial foundation.
Medical emergencies or unforeseen events should not derail your financial future—act now to secure the best rates and complete peace of mind. That’s all about Why Get Term Life and Health Insurance Early
👉 Don’t delay—compare insurance plans today and take control of your financial security!