Six Reasons To Get Health Insurance In Your First Job

Rahul Singh, 24, started his first job as a software engineer at 23, and he thought he wouldn't need health insurance. 

But then he needed an appendicitis surgery, and that cost him Rs 1.5 lakh, which he paid from his savings and a loan. The single medical event taught him that paying a small regular premium is far better than shelling out big amounts from his pocket.

When you are in your first job, it is a good time to get health insurance. You might think you are young and do not need health insurance, and you may never need it, but health insurance still makes sense. 

Let us look at six reasons why.

Stay Protected

You would probably not require health insurance in your early twenties, but it always makes sense to stay protected because emergencies can happen to anyone.

Get Better Healthcare

Your office may offer you group insurance, but coverage can be limited. Plus, you will be left without cover between jobs. So, a private health insurance cover is important. Through that, you can access a broader network of hospitals and doctors and ensure that you get the best medical care.

Also, with insurance, you get cashless hospitalisation and do not need to pay big bills upfront.

You Get Tax Benefits Under The Old Regime

Premiums you pay for medical insurance are eligible for deduction under section 80D of the Income Tax Act if you are under the old regime. That reduces your taxable income.

No Claim Bonus

Every year, if there is no claim, the insurance company will reward you with a no claim bonus, which increases your sum assured next year. The increase can be up to 50 per cent. If these no-claim bonuses add up, you will have a much higher sum assured when you are in your 30s or 40s.

Low Premiums

Since you are low-risk, the annual premiums will also be low. At 23, your annual premiums could be as low as Rs 12,000 per annum.

Prudent Financial Management

You would save some of your salary every month. However, in case of a medical emergency, in the absence of insurance, you would need to dip into your savings. Having health insurance is thus a crucial aspect of your financial planning.