I’m 24 and work out daily. Which covers should I look for while buying a health insurance policy?

I work out regularly and take good care of my health and fitness. Which covers should I look for while selecting a health insurance policy? I am 24 and have just started working.

By Bhaskar Nerurkar, Head – Health Administration Team, Bajaj Allianz General Insurance.

It's good to hear you are proactive about your health and fitness at a young age! Investing in health insurance at 24 is indeed a wise decision since it financially secures your future and gives you the advantage of lower premiums while you’re in good health.

Health insurance policies typically come with specific conditions, like moratoriums and waiting periods, that are essential to understand. A moratorium period refers to a specific duration after which an insurer cannot reject a claim on the grounds of non-disclosure or misrepresentation of pre-existing conditions. It currently spans 5 years as per IRDAI guidelines.

On the other hand, the waiting period is the duration you must wait before receiving benefits from your policy for specific, defined conditions. For example, the waiting period for maternity coverage may range from 9 to 36 months, depending on the policy terms and conditions. Hence, by purchasing health insurance at a younger age, you meet these conditions sooner, ensuring comprehensive protection against potential health issues in the future.

Let me guide you through essential considerations when selecting a health insurance policy:

When choosing a health insurance policy, it’s crucial to opt for a Sum Insured that provides sufficient coverage that meets rising medical costs. I recommend an amount in the range of ₹5 lakhs to ₹10 lakhs for an individual policy. Additionally, every claim-free year earns you a Cumulative Bonus, which essentially boosts your sum insured without additional cost.

If you’re looking to opt for a health insurance policy for your family, a Family Floater Policy is a great choice since it allows family members to share the sum insured. Opting for a coverage amount in the range of ₹20 to ₹25 lakhs is advisable in such a scenario. This is a wise choice, especially since you’ve just started earning and want to take responsible care of your family.

Medical science is evolving rapidly; hence, ensure your policy covers Modern Treatments, keeping you prepared for advanced medical procedures in the future. Outpatient Department (OPD) coverage is also important, as it allows access to outpatient care without hospitalisation, promoting proactive health management. Consider adding Maternity and Baby Care cover, as there’s usually a waiting period of 24 to 36 months for maternity benefits, making it a smart decision if you're planning a family in the future.

Another key feature to look at is the Critical Illness and Accident Multiplier feature, which can boost your sum insured by 2 to 3 times if you contract a major illness like cancer or kidney failure or if you meet with an accident, offering much-needed financial support when you need it the most. Additionally, consider the Loss of Income cover, which compensates for lost income during your hospitalisation and recovery. It provides a pre-determined amount each week you are hospitalised, helping you manage expenses while focusing on your recovery.

Finally, seek out policies that offer Wellness Subscriptions and benefits such as gym memberships, preventive check-ups, fitness classes, and discounts at wellness centres within the insurer's network. These incentives encourage you to stay committed to your health while enjoying additional perks.

Additionally, Section 80D of the Income Tax Act, 1961 offers tax deductions of up to ₹25,000 on health insurance premiums paid in a financial year, enabling you to reduce your taxable income and potentially save a significant amount of money. Additionally, it’s essential for youngsters to focus on proactive health measures rather than reactive ones.

The best time to buy health insurance is when you’re young and healthy, as you can lock in lower premiums, clear waiting periods early, and build on your No-Claim Bonus. Take the time to explore your options, compare plans, and choose a policy that offers holistic coverage. A well-planned health insurance policy doesn’t just cover medical expenses—it ensures uninterrupted access to the best care while keeping your finances intact.

(The views expressed by the expert are solely his own)