Why You Should Buy Health Insurance At Young Age?

Sumit Kati

29 Jul 2017

We often hear about a distant relative, who despite his age, suffers from no ailment. However with our hectic schedule and work lifestyle, the adage may not be applicable to the current generation. Although the life expectancy in India has increased, thus the diseases that affect the younger population has increased as well. In such a fast paced scenario, there is no better time to get your health insured.

Straight to the point
It is well known that with progressing age, the annual premium for health insurance increases accordingly. An older person, as compared to his younger counterpart, will have to pay more in order to get his/her health insured. The reason here is clear; as a person gets older, his or her chance of falling ill is higher, due to the weakening of his or her immune system. 

One never wishes to use his/her hard-earned money to pay the hospital bills. It is advisable that one gets a health insurance policy at an early age to make most of it and also avail various benefits. Here are a few reasons to make the right health decision before your next birthday. 

1) Best offers
A plan with Rs.10 lakh coverage would cost around Rs.10,000 at the age of 25. At the age of 35, the premium for the Rs.10 lakh coverage might be as high as Rs.14,000. As one grows old, the premium keeps increasing. So, book your policy at the lowest price possible. Also, you get discounts in premium or other benefits from the insurance company for leading a healthy lifestyle.

2) Health coverage
When compared to your company's health coverage, hospitalization for regular illness can cost you a lot more than you can imagine. The need for medical attention increases as you grow old. The need for insurance can not be overlooked with the increasing healthcare costs. 

3) Financial planning 
Accidents occur without any prior knowledge and it is the best to be well-equipped. Buying a health insurance ensures that you're prepared for any unprecedented occurrences. By paying your insurance premium, you can also save tax.

4) Wide-ranging deals
With a lower scope of pre-existing diseases at a young age, any illness that crops up later in your life might automatically be covered.  A wise decision of buying insurance at an early age means holistic and wide-ranging coverage. 

5) No waiting period
When you buy an insurance at an early age and you do not have a requirement for that, you have covered the waiting time. This means that you can avail the full benefits later when you are in dire need of the same for surgeries, treatments, etc.

Summing It Up
Many a times, health insurance companies offer a loyalty or bonus for people who continue with the policy, year after year. Depending on the cover, the health policy may pay not only for serious hospitalization or treatment, but also for an ambulance, medications, and other such non-hospital related things. It's also possible to customize your health insurance cover according to your family needs. In the end, the phrase stands true; make hay while the sun shines.


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Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Why You Should Buy Health Insurance At Young Age?

Sumit Kati

29 Jul 2017

We often hear about a distant relative, who despite his age, suffers from no ailment. However with our hectic schedule and work lifestyle, the adage may not be applicable to the current generation. Although the life expectancy in India has increased, thus the diseases that affect the younger population has increased as well. In such a fast paced scenario, there is no better time to get your health insured.

Straight to the point
It is well known that with progressing age, the annual premium for health insurance increases accordingly. An older person, as compared to his younger counterpart, will have to pay more in order to get his/her health insured. The reason here is clear; as a person gets older, his or her chance of falling ill is higher, due to the weakening of his or her immune system. 

One never wishes to use his/her hard-earned money to pay the hospital bills. It is advisable that one gets a health insurance policy at an early age to make most of it and also avail various benefits. Here are a few reasons to make the right health decision before your next birthday. 

1) Best offers
A plan with Rs.10 lakh coverage would cost around Rs.10,000 at the age of 25. At the age of 35, the premium for the Rs.10 lakh coverage might be as high as Rs.14,000. As one grows old, the premium keeps increasing. So, book your policy at the lowest price possible. Also, you get discounts in premium or other benefits from the insurance company for leading a healthy lifestyle.

2) Health coverage
When compared to your company's health coverage, hospitalization for regular illness can cost you a lot more than you can imagine. The need for medical attention increases as you grow old. The need for insurance can not be overlooked with the increasing healthcare costs. 

3) Financial planning 
Accidents occur without any prior knowledge and it is the best to be well-equipped. Buying a health insurance ensures that you're prepared for any unprecedented occurrences. By paying your insurance premium, you can also save tax.

4) Wide-ranging deals
With a lower scope of pre-existing diseases at a young age, any illness that crops up later in your life might automatically be covered.  A wise decision of buying insurance at an early age means holistic and wide-ranging coverage. 

5) No waiting period
When you buy an insurance at an early age and you do not have a requirement for that, you have covered the waiting time. This means that you can avail the full benefits later when you are in dire need of the same for surgeries, treatments, etc.

Summing It Up
Many a times, health insurance companies offer a loyalty or bonus for people who continue with the policy, year after year. Depending on the cover, the health policy may pay not only for serious hospitalization or treatment, but also for an ambulance, medications, and other such non-hospital related things. It's also possible to customize your health insurance cover according to your family needs. In the end, the phrase stands true; make hay while the sun shines.