There is a common misconception among young individuals in their 20s that critical ailments, like heart disease, cancer, stroke, etc. can only occur when they grow old. Young people tend to overlook the need to financially protect themselves from critical illnesses without realizing that medical conditions can affect anyone belonging to any age group and that availing treatments for such ailments can be expensive.
A critical illness insurance plan provides financial support and safety if you suffer from a severe medical condition. The most attractive aspect of this type of health insurance policy is that it is easily affordable in your 20s.
Why are Critical Illness Plans Affordable in Your 20s?
A compelling reason to invest in a critical illness health plan in your 20s is the low premium price. Generally, insurers calculate the insurance premiums based on the risk level you pose, and your age is one of the major factors determining this risk level.
At a young age, you are considered to be at a low risk of developing serious ailments, which is why it is cheaper for you to avail critical illness medical insurance.
This is the primary reason for critical illness plans being affordable only when you are in your 20s. If you purchase a critical illness medical policy in your 40s or 50s, you will have to pay a higher premium when compared to buying the same plan in your 20s.
This is because as you age, your chances of developing a serious medical condition increase. Consequently, your insurer will provide you with critical illness cover at a high premium cost, as you pose a high-risk level as you age.
Advantages of Purchasing Critical Illness Plans Early in Life
Now that you know that in your 20s, you can get access to affordable critical illness insurance, let us discuss some of the major benefits of buying critical illness plans in the early years of your life:
- You Will Not Require a Medical Check-up: When it comes to health insurance for young adults, including a critical illness plan, you are not required to undergo a medical check-up. Moreover, purchasing this plan at a young age allows you to avail yourself of instant critical illness coverage without hassle.
Additionally, trusted insurers make provisions for you to renew this plan for a lifetime. Using this cover you can get financial coverage for some of the expensive life-threatening ailments like renal failure, heart attacks, cancer, etc.
- You Will Receive a Lump Sum Payment: It can be expensive to avail yourself of treatment for critical ailments, which can impact your savings significantly. However, with critical illness medical insurance for young adults, you can receive a lump sum payout.
This payment is made based on the illness diagnosis specified in the terms and conditions of the policy. This payment helps to deal with the steep treatment expenses and financial coverage in case of loss of income while under treatment, provided it is according to the policy’s terms.
- You Do Not Have to Worry About Waiting Period: Each critical illness plan comes with a specific waiting period, which you are supposed to complete so you can receive the lump sum payout from your insurer. Availing of this plan in your early years will ensure that you complete the waiting period as specified in your policy document.
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Conclusion
Any critical illness in the family can lead to significant financial losses, which can be avoided by opting for a critical illness plan. Therefore, you should compare the different health plans in the market before selecting the one that meets your requirements. Also, remember to read the policy wording carefully to learn about the exclusions, benefits, limitations, etc. before purchasing the policy.
Frequently Asked Questions
At what minimum age can you avail of critical illness insurance?
Ans. The minimum age for critical illness insurance that most insurers offer is 18 years.
At what age do people get critical illness?
Ans. While critical illness may occur at any age, individuals above 40 years are at a greater risk of developing them.
What are the disadvantages of critical illness insurance?
Ans. Some disadvantages of critical illness insurance include high premiums, limited illness coverage, limited claims in a policy year, and age-based coverage.
Who will benefit from a critical illness policy?
Ans. A critical illness policy can benefit different categories of individuals, including those with a family history of critical ailments, those who are primary breadwinners of their families, self-employed individuals, aged adults, etc.
