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Why it is a good idea to opt for an individual health insurance plan after 40?

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Life can go fast. One day, you are in college sipping cold drinks in the canteen, and within the next few years, you see yourself struggling to find tea breaks at work. While leading a fast-paced life, we need to prepare for medical emergencies like ailments and injuries. If you are part of a nuclear family and you have a family floater health plan, it is a good decision. But with time, you need to keep evaluating your insurance needs. That’s why turning 40 is a significant milestone where you should switch to an individual health insurance policy. Read on to learn the reasons why it is a good idea.

Reasons why you should opt for an individual health insurance plan after 40

There are several reasons why it is wise to invest in an individual health insurance plan after 40 –

1. Increase in health risks:

As you cross 40, there is an increased risk of developing health conditions like hypertension, diabetes, or heart ailments. You may also require regular medical attention to ensure all vitals are under control. Also, medical emergencies can occur anytime due to health risks. If you have an individual health insurance policy, it will offer adequate coverage for all medical expenses relating to these conditions and other health issues, and you need not worry about the costs associated with treatment and quality healthcare.

2. Personal sum insured:

For people with chronic health conditions and those above 40, it is recommended to buy individual health insurance because the sum insured is meant only for the insured. Family health insurance may prove insufficient, as the sum insured is shared amongst all household members. If you exhaust the entire sum insured, other members will be at risk.

3. Rising medical costs:

As the sum insured of an individual health insurance plan is dedicated to the policyholder only, you will not feel the pinch of high expenses arising due to surgeries, treatments, medications, etc. An individual health insurance policy shields you from unforeseen and rising medical costs, which otherwise can burn a hole in your pocket.

4. Extensive coverage:

Individual health insurance with comprehensive coverage is a must for people aged 40 and above. In addition to hospitalisation, pre- and post-hospitalisation expenses, daycare treatments, and other medical services, the plan must also provide coverage for regular check-ups and health screenings. These will help diagnose potential health risks and avail of timely medical intervention to reduce health complications.

5. Frequent travels:

Travelling frequently at this age will increase health risks, as you are exposed to different climatic conditions, cuisines, and customs. A global health insurance policy is a must-have for complete financial protection and securing your well-being.

6. Customised plans:

An individual health insurance will allow you to customise the policy based on your health risks, lifestyle, and workplace conditions, which is not possible in a family floater. You can choose the sum insured, coverage, add-ons, etc., based on your individual needs and preferences.

7. Group health plan is not sufficient:

Completely relying on employer-sponsored group health insurance is not a good idea. Firstly, the coverage is limited, and secondly, you will be covered till the time you are employed there. If you lose your job, switch organisations, or plan to retire early, you will not have any financial security immediately, as waiting periods associated with PEDs and certain ailments must be completed before you can make a claim for such illnesses. Having an individual health insurance plan will ensure there is continuity in coverage.

8. Tax benefits:

You are eligible for a tax benefit of up to INR 25,000 for paying the premium of your individual health insurance plan.

9. Peace of mind:

If a medical emergency crops up or there is a planned surgery, the individual health insurance plan will have your back, giving you peace of mind.

Things to keep in mind while buying individual health insurance after 40

• Sufficient coverage:

When buying a health plan, you should not consider only medical emergencies. There are many other ailments which require planned treatments. Hence, you must ensure the individual health insurance plan has a sufficient sum insured for both planned and unplanned expenses. If you cannot afford a policy with a high sum insured, you can consider top-up or super top-up plans to boost the coverage; these plans are also cost-effective.

• Buy early:

Investing in an individual health insurance policy when you are in your 40s and still healthy will get you lower premiums. You can also complete the waiting periods for pre-existing conditions and specific ailments.

• Low waiting period:

After 40, there are chances of people suffering from pre-existing conditions like diabetes, high blood pressure, and cardiac ailments. These conditions are covered after a waiting period of 1-3 years, depending on your insurer. So, it is important to check the waiting periods offered by different insurance providers and opt for plans with a minimum waiting period. You can also opt for a waiting period waiver or reduced waiting period rider, for which you have to pay an additional premium.

• Network hospitals:

Check the list of in-network hospitals of your insurer and how many are located in your vicinity. The wider the network, the better. In network hospitals, you need not worry about upfront payments because it is between the insurance company and the network hospital to settle the bills.

• Exclusions:

Most of us just focus on what is covered in the policy. Remember, being aware of the exclusions is also important because it will help avoid claim denials.

• Critical illness insurance:

If you are at risk of contracting critical illnesses due to age, family history, or lifestyle, you should invest in a critical illness insurance policy for financial protection against the high treatment costs. On being diagnosed with a critical illness like cancer, stroke, paralysis, or kidney failure, the insurer will provide a lump sum compensation up to the sum insured.

• Compare health plans:

With so many health plans in the market, how do you buy the best one? You need to compare them on the basis of coverage, cost, benefits, inclusions and exclusions, network hospitals, etc., and choose the one that offers maximum coverage at affordable premiums.

Who should buy individual health insurance?

Apart from people above 40, individual health insurance is ideal for those who are single, battling chronic medical conditions, have high health risks, and individuals who want a dedicated sum insured instead of being covered under a family floater. The premium, lower than a family health plan, is calculated based on the individual's age, health profile, and lifestyle.

Conclusion

Now that you know the benefits of having individual health insurance and why it is preferred over family health insurance after 40, start your research for an individual healthcare plan right away. Shortlist and compare a few to select the plan that best fits your needs and budget. Ensure the policy has a good sum insured to protect you financially against rising medical costs.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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