Let's compare the features offered by a comprehensive plan and one offered to people with lifestyle diseases:
Features of Comprehensive Plan |
Features of plans offered to people with a lifestyle disease |
No room rent limits, all treatments covered up to sum insured, minimal deductions. |
Room rent limits, stringent financial limits on every treatment carried out, sharing of costs (copay) with the insurer, and many other conditions. |
Modern lifestyles, including work stress, food habits, smoking, drinking, etc., and the environment degraded by pollution are all contributing factors to chronic diseases (cancer, cardiac ailments, etc.) at a younger age.
On the other hand, not everyone suffers chronic diseases at an early age, but, you never know when you can be hospitalised for infectious diseases, such as Dengue and Malaria, or for injuries sustained from accidents. So, buying the policy early and not taking the risk of rejection later is a no-brainer.
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Exhaust All Mandatory Waiting Periods Before You Get Old
A waiting period is a duration after policy purchase during which the insurer doesn’t cover you for any expenses related to the hospitalisation of certain diseases, specific surgeries, pre-existing illnesses, and special treatments as mentioned in their policy wording. Any hospitalisation expenses you incur during this period cannot be claimed, so you must pay them out of your own pocket.
Summary of waiting periods
Condition |
Waiting Period |
Accidents |
0 |
Pre-existing conditions |
1-4 years |
Specific illness/procedures |
90 days to 4 years |
Initial Waiting Period |
30 days from the date of policy issue |
If you purchase a policy when you are young and healthy, say at the age of 20 or 25, you serve the waiting period while you are not in need of health insurance. By the time you reach the point when you may make a claim, the waiting period will most likely be over.
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No Medical Check-Ups
If you are 45 years or older, most insurance companies require you to undergo a health check-up. This is because, at this age, you are more likely to fall ill and make a claim. Therefore, your insurer will have to make sure that you are not a risky individual to cover before approving your application.
When you purchase a policy at a younger age, there will be no medical check-ups required, unless your application form mentions any existing illness or lifestyle condition.
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Tax Benefits U/S 80D
Under Section 80D of the Income Tax Act, you are eligible for income tax exemptions by purchasing a health policy. So, if you buy a health insurance plan at a young age, you can start taking advantage of this benefit sooner!
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No Claim Bonus
When you do not make any claims during your policy year, health insurance companies offer you a reward called No Claim Bonus.
This no claim bonus is provided in 2 ways -
The chances of you filing claims are lower at a young age, so with every renewal of a claim-free year, you will earn a No Claim Bonus. You can, thus, enjoy an increased cover in later years, thanks to the No Claim Bonus accrued over the years.
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Smooth
As long as you have not filed any claims or don't have a disease at the time of transfer, the process should go smoothly.
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Challenging
Incoming insurers can decline portability based on past claims or medical history. Therefore, it is better to avoid taking a chance at an older age when disease/conditions could complicate the situation.