Most people think about health insurance only when it's too late, after a hospital bill or an unexpected illness hits. In India,
over 77% of urban households still pay hospital costs out of pocket, which can quickly drain savings or disrupt financial plans. By starting early, in your 20s or early 30s, you can lock in lower premiums, access wider coverage, and avoid complications related to pre-existing conditions later.
Early insurance also helps you plan for modern treatments and lifestyle-related illnesses that may arise as you age. Waiting until your 40s or beyond often means higher costs and limited options. Simply put, the earlier you buy health insurance, the better your financial and health security for the future.
What is the Right Time to Buy Health Insurance?
Early 20s
If you're in your early 20s, starting your first job, paying rent, or managing student loans, health insurance might feel unnecessary. But this is the best time to buy. Premiums are the lowest, coverage is broader, and you're less likely to have
pre-existing conditions. For example, with insurance, a minor accident or sudden illness won't hamper your savings or cause stress over bills.
Pros:
- Lowest premiums and affordable even with a beginner's salary
- Broader coverage with fewer exclusions and the option to add benefits like maternity or critical illness later
Cons:
- Waiting for waiting periods, especially if you wish to include your ageing parents.
- The coverage amount might seem large compared to current expenses with an entry-level income
Early to Late 30s
By your 30s, life changes - marriage, kids or increasing responsibilities. Hospital visits become more frequent as lifestyle diseases like diabetes or hypertension start appearing. A hospitalisation without insurance can quickly drain savings.
Pros:
- Protects you and your dependents from rising health risks
- Financial security for emergencies
- Premiums still reasonable
Cons:
- Slightly higher premiums than in 20s. It could be challenging to find the right balance for coverage and premiums
- Minor exclusions may apply for early health issues
- Applicability of waiting periods for future conditions, such as a waiting period to use maternity benefits
40s and Above
After 40, health risks rise, which increases your chances of claiming your insurance for health emergencies, and increases your premiums. Waiting too long can make coverage expensive and limited, leaving you vulnerable to high out-of-pocket expenses during medical emergencies.
In addition to the above scenarios, if you are aware of any family history of critical illnesses or lifestyle diseases (PEDs), such as cancer, liver and kidney disorders, heart conditions, etc., purchasing a comprehensive health plan with specialised protection for such illnesses early can ensure complete protection.
Benefits of Investing Early in a Health Plan
1. Tax Benefits from Day One
Buying health insurance early allows you to claim tax deductions right from the start. You can claim up to ₹1 lakh for premiums paid for your policy, reducing your taxable income under
Section 80D of the Income Tax Act. Over the years, this adds up to significant savings, helping you invest more in your health. Starting young means more years of tax benefits.
2. Coverage for Accidents & Emergencies
Health emergencies and accidents are unpredictable. By buying insurance early, you ensure that sudden hospitalisations or medical treatments are covered. This prevents you from dipping into savings or taking loans in stressful times. Early coverage means both minor and major emergencies won't disrupt your financial stability.
3. Access to Preventive Health Check-ups
Many health insurance plans offer regular preventive check-ups. Buying early gives you the opportunity to monitor your health over time and detect potential issues before they become serious. Early detection helps in timely treatment, maintaining long-term health and reducing the risk of expensive medical bills later in life.
4. Long-Term Financial Security
Health insurance purchased early locks in lower premiums and ensures coverage for unexpected medical costs. Over time, this creates financial safety, protecting your savings from sudden medical expenses. By investing in a plan when you are younger, you reduce the financial burden on yourself and your family.
5. Lifestyle Alignment
Early health insurance can be tailored to match your lifestyle and evolving health needs. Whether you have a high-risk job, travel often or follow a specific fitness routine, if you buy early, your plans can adapt to your habits. This ensures your coverage remains relevant, providing support for treatments and wellness services that fit your personal health journey.
6. Affordable Premium
When you buy health insurance at a young age, you will get it at an affordable premium rate. This is because when you are young, you are generally healthy and have no serious health conditions. Therefore, your insurance provider perceives you as a low-risk policyholder who has a lower probability of filing a claim under the health plan.
7. More Options
When you buy a health plan at a young age, you have the liberty to compare health plans offered by the various insurance companies, which will allow you to make an informed decision. However, an older person may not get to enjoy the perk of the option of choosing from different insurers, as their options are limited.
8. No Necessity of Medical Tests
If an older person buys a health plan, they must undergo several medical tests and check-ups. The results of the tests determine whether the policy will be issued to that person or not. However, when you are young and healthy, you don't have to go through any of this.
9. Waiting Period
Every health plan has a certain
waiting period during which coverage for pre-existing conditions is not provided. Therefore, if you are buying a health plan with an existing medical condition, it will not be immediately covered under the plan. However, investing in a health insurance policy at an early age ensures the waiting period is over in case you are diagnosed with a disease in the future, and you will get coverage immediately.
Conclusion
Health insurance is a safety net in all phases of life. Whether you are in your 20s, 30s or over 40, insurance protects you from unexpected expenses arising out of medical emergencies. That said, purchasing health plans early in your 20s is ideal, as it allows you to opt for more comprehensive plans at lower premiums as compared to buying them at a later age. This is mainly because you are at a higher risk of developing age-related illnesses, which requires higher coverage, thereby increasing your premium prices.
To ensure complete protection for you and your family, purchase a flexible and comprehensive plan with Reliance
Health Insurance that grows with your evolving needs. Our wide range of coverage options, add-ons like maternity cover and advanced features like lifelong renewability or restore benefits ensure you are covered at all times. With plans starting at just ₹243/month*, features and premiums are perfectly balanced to fit your budget and healthcare needs.
Frequently Asked Questions
What is the minimum age for insurance?
We offer our health insurance plans for adults starting from 18 years of age. For dependent children, you can secure health protection as early as 3 months of age.
What is the 5-year health insurance rule?
According to this rule, health insurers cannot deny claims after 5 continuous years of coverage because you failed to disclose your pre-existing health conditions.