Why should you Buy Critical Insurance Policy in Your 20s?

The 20s are a crucial phase of our lives. This is when we make life-changing decisions. For example, maintaining a healthy lifestyle is important to prevent diseases in the long term. However, merely counting on a good diet and healthy habits is not enough to keep you in a good shape.

Today’s sedentary lifestyle and stressful times make us prone to critical diseases.
This is why critical illness insurance is highly important. With rising medical inflation, it can help you stay financially prepared for any unexpected diagnosis in the future, which can derail your life plans.

Have a look at why buying the policy in your 20s can prove beneficial.

Lower Premiums

The premiums of critical illness cover are dependent on pre-existing medical conditions. Since you are perceived to be healthy in your early 20s, the premiums are low.  Further, high BMI (Body Mass Index) is related to medical complications like diabetes, joint problems, and heart ailments. This way you could end up paying higher premiums. The BMI is usually stable at a young age and does not impact the premium of your insurance. 

Zero Waiting Period

Critical illness insurance typically specifies a waiting period before it comes to action. It usually begins from the date you buy the plan and continues till the benefits begin. This could be a few weeks up to a couple of years. Therefore, it is a smart move to buy the policy early. This way, the waiting period is completed by the time you could require the funds. This lets you claim the benefits immediately.

Low Chances of Rejection  

If you have a bleak medical history, like stroke, kidney/liver failure, or cancer, the chances of getting a cover are less. The risks associated with younger individuals are comparatively low. So, you are less likely to be denied a critical illness plan in your 20s.  If you acquire these diseases, later on, they automatically get covered. 

Tax Benefits

Under Section 80D of the Income Tax Act, the payouts of critical illness policy are completely tax-free. So, buying the critical illness cover in your 20s makes it easy to enjoy tax advantages for a longer time. You can save a good amount of money over a longer timeframe which might not be possible at a senior age.

Upsurge in Health Expenses

Advanced technologies may only cause healthcare costs to escalate in the future. Lifestyle expenses are also on the rise. Therefore, the early 20s is the ideal time to buy critical illness insurance.

Get in touch with a life insurance agent to understand the benefits of early insurance purchase better. Check the illnesses covered, get an idea of treatment expenses, and keep the miscellaneous costs in mind too. Keep in mind to consider the exclusions if any, so that you can avoid hassles in the future. Further, use a critical illness premium calculator to know the total payable amount, so that you can choose the best policy based on your budget.