What is the right age to buy health insurance?
Why shouldn’t it be combined with your parents’ health insurance?
And what are the things to keep in mind while buying it?
In our previous post, I covered life insurance.
You can check it out here.
And in this article, I will cover health insurance specifically for you and your immediate family.
Especially Four Things:
- What is the right age to buy health insurance?
- Why not combine your and your parents’ health insurance plans?
- Why have an additional health insurance plan along with a corporate plan?
- Things to keep in mind while buying health insurance
Let’s start.
1. What is the Right Age and Time to Buy Health Insurance?
The definition of insurance is: if X happens, then give me financial protection.
For health insurance, this X becomes: if hospitalization happens, then give me financial protection.
Hospitalization is never planned. There are so many examples where all the savings and investments of families have been wiped out because a hospitalization was needed without any warning or planning. That is why health insurance is important.
Now, if you are young and healthy and you take health insurance at that point, then that is, for me, the right time to do it.
Why?
Three reasons:Maximum cover at the least premium
Your premium would be the least. Because you are young and healthy, your risk of hospitalization is so low that the insurance company would give you maximum cover at the least premium.
You can get a ‘No Claim Bonus’
Since the likelihood of your hospitalization is so low, you can get a no-claim bonus year after year.
No claim bonus: A reward by an insurance company to an insured for not raising any claim request during a policy year.
It means that if you haven’t claimed anything in one year, then at the time of renewal, you will get a no-claim bonus — through which you get more coverage at the same premium. So, over the years, your cover keeps increasing for the same premium. This can only happen if the chances of your claim are very low, which is possible when we are healthy and young.
Lower rejection rates
If you take insurance at a healthy and young age, then, God forbid, even if you get hospitalized, your rejection rate would be very low. It’s unlikely that there would be something to suggest that you hid a pre-existing disease or did not disclose something properly.
Because of these three reasons, I genuinely think that the best time to buy insurance for yourself and your family is as early as possible. I have insurance for myself and my family.
2. Don’t Combine Your Health Insurance with Your Parents’
Your parents’ health insurance plan should not be combined with your family’s health insurance plan. Take a separate insurance plan for parents.
To know how, why, and what things to keep in mind, please check this article: [link].
And take a dedicated plan for your family, which we will talk about today.
3. Corporate Health Plan
Many working professionals get a corporate health insurance plan as part of their benefits. A lot of people think:
“Since I have a corporate health plan, why do I need to buy a separate one?”
Because in that plan you, your partner, children, your parents, and in some cases your in-laws are also covered, it seems like the best plan ever.
You don’t even have to bear the expense — the company does — so it feels even better.
But it has some limitations that you should know, and that’s what I’m going to share now.
Limitations of Corporate Health Plan:
1. It ends when you leave the company
If you’re not planning to stay in one company for life, then please be sensible — take a separate health insurance plan for yourself.
2. Having two plans is allowed
In India, it’s possible to have two insurance plans.
For cashless treatment, you can use only one plan, but the remaining unpaid amount can be claimed from the other plan.
Example:
- Your hospital bill is ₹4 lakhs.
- Corporate insurance covers ₹2 lakhs.
- You have a personal plan worth ₹3 lakhs.
You can:
- Use your personal plan for ₹3 lakhs (cashless),
- Pay ₹1 lakh from your pocket,
- Then claim reimbursement of ₹1 lakh from your corporate plan using original receipts from the hospital.
Many people don’t know this. That’s why you should always take a personal plan along with your corporate plan.
Co-Pay
Many companies have a co-pay clause in their corporate plans to prevent misuse.
Co-pay: The insured person pays a portion of the medical expenses themselves; the company pays the rest.
For example, if your bill is ₹4 lakhs and your co-pay is 10%, the company will pay only ₹3.6 lakhs. You’ll have to pay ₹40,000 from your pocket.
So, check whether your corporate plan has a co-pay clause. If yes, it’s a limitation.
Limited Coverage
Since the company is paying the premium, the coverage is usually limited.
I’ve seen plans with ₹1–2 lakhs per person.
So, for you, your partner, and two kids, you may get a total plan of ₹4–8 lakhs.
But if you buy your own plan, you decide the coverage — maybe ₹10 lakhs for a family of 4, or ₹5 lakhs for a couple.
Also, personal plans continue even after you leave your job — you keep renewing them. That’s why I strongly recommend having a separate health insurance plan for yourself.
4. Things to Keep in Mind While Buying Health Insurance
Here are five key things to look for when choosing a health insurance plan:
1. The Right Amount
According to me:
- ₹2–2.5 lakhs per adult
- ₹1 lakh per child
So:
- 2 adults = ₹5 lakhs
- 2 adults + 1 child = ₹6 lakhs
- 2 adults + 2 children = ₹7 lakhs
This is a good guide to estimate your needs.
2. Network HospitalsCheck how many cashless hospitals are in the insurance company’s network — especially those near your area.
3. Lifetime Renewal
Ensure your policy allows lifetime renewal.
Some policies only allow renewals up to a certain age — which is not ideal.
4. Medical Check-ups Included
Some plans offer free annual check-ups.
When you’re young, it feels unnecessary, but it’s useful and should not be ignored. Choose a plan that includes this.
5. Maternity Benefits
If you’re planning a family, maternity benefits matter.
Look for:
- Higher benefit amount
- Shorter waiting period
Many plans offer limited maternity benefits or longer waiting times.
Conclusion
These were the basics of health insurance.
Now, how do you buy it?
You can use Policybazaar.com — a great platform to compare different insurance companies, get deals, and make an informed decision — all in one place.
Watch the video here:
https://youtu.be/sYuzikmYLMo?t=707 (Double-check the link)
Final Note
If you have any doubts or questions about this post, feel free to ask in the comments.
I hope this was useful.
Please, please, don’t ignore your health insurance.
Don’t combine it with your parents’.
Take it for your family. Even if you’re single, start now — then add your spouse, then your kids.
This is the wisest thing you can do before investing money to grow your money.
