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Yes. You should definitely buy a health insurance policy at a younger age. Take a look at some of the reasons why buying health insurance at a younger age is a great idea:
Lower Premiums: Your age is one of the most important factors that determine your health insurance premium. Insurance companies consider younger people healthier and so, are a lower liability for them. On the contrary, older people are more vulnerable to ailments and thus, are a greater liability to the insurance provider. As a result, the lower is your age, the lower will be your premium amount..
Easier to Get Over Waiting Period: Every health insurance policy comes with an initial waiting period of 30 days. Younger people are less likely to raise a claim during this period as their probability of having any serious medical condition is very low. Therefore, they can wait out the initial waiting period with ease. The same cannot be said for elderly people as they may face a medical emergency within days of buying the policy but will be unable to raise a claim during the waiting period.
Seek Professional Guidance: If you're unsure about where to start, it's highly recommended to seek professional guidance. An expert can assess your financial situation, health status including cover, and suggest suitable product thus reducing costly mistakes of claims denial etc.
Financial Freedom: The basic purpose of health insurance is to pay your medical expenses. With a health policy, you end up saving a lot of money on medical expenditures, especially those arising due to a sedentary lifestyle. Otherwise, you would have to pay for these expenses from your own pocket. Thus, the sooner you buy the policy, the more financial freedom you can enjoy.
Never Depend on Employer Cover: The moment your employment ends, the policy will get terminated. You will be out of insurance cover, till you get employed somewhere else. Not all the employer health insurance plans offer coverage to your dependent family members. It is one of the major shortcomings of this plan corporate plans. Hence, cover yourself and family with additional cover of your choice.
Strictly Not An Investment for Returns: Unlike investments, insurance premiums do not generate any returns or profits. The primary purpose of the premium is to transfer the risk from the policyholder to the insurance company. In other words, insurance premiums are a form of risk management, not a form of investment.
Protect Your Loved Ones: When you are looking for a suitable health insurance plan, the needs of your family are the top-most priority. Given the importance of health insurance for meeting medical expenses, it is more significant for people with financially dependent family members. The burden on a single income source for multiple people's healthcare is unimaginable.
It is essential to assess your situation carefully and invest in a plan that gives you optimum benefits. For example, if you have aging parents, they are more vulnerable to diseases and require efficient healthcare. You must calculate the need for health insurance earlier in life to prepare beforehand and have adequate financial support.
The right time to buy a health insurance policy is as soon as possible. The sooner you buy, the better it is for your pockets. Make sure to compare different health insurance plans online on Policybazaar.com to choose the best policy within your budget.
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Investing in mutual funds with a SIP is a popular and systematic way to grow wealth over time. Here's a brief guide to help you set up a SIP:
Understand Mutual Funds: Mutual funds are investment vehicles that pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities. SIP allows you to invest small amounts regularly.
Determine Financial Goals: Determine your financial goals for investing in mutual funds through SIP. Whether it's wealth creation, buying a house, or funding your child's education, having a goal will help you plan better.
KYC Compliance: Complete the Know Your Customer (KYC) process with a registered KYC agency or a mutual fund company. This involves verifying your identity and address.
Select the Right Fund: Based on your financial goals, risk tolerance, and investment horizon, chooses a mutual fund scheme. There are different types of mutual fund schemes like equity, debt, and hybrid funds.
Select the AMC: Once you decide on the fund type, choose an Asset Management Company (AMC) that manages the fund.
Determine SIP Amount: Decide how much you want to invest through SIP. The minimum investment amount can vary from one fund to another, but it's generally affordable.
Choose the Frequency of SIP Deduction: Choose the frequency for SIP deduction from daily, monthly, quarterly, semi-annually etc.
Pick SIP Date: Decide on the date of the month when you want the SIP deductions to take place. It can be any date that suits you.
Complete the Application Form: Fill out the SIP application form. Provide necessary documents like PAN card, bank details, and KYC acknowledgment.
Bank Mandate: You'll need to set up a bank mandate for the SIP. This allows the fund house to auto-debit the specified SIP amount from your bank account on the chosen date.
Review: After you start your SIP, review your investments periodically. Track the fund's performance and make adjustments if necessary. Review your portfolio to ensure it aligns with your financial goals.
Stay Committed: SIP is a long-term investment strategy. It's crucial to remain committed to your investment plan even during market fluctuations. Avoid stopping or redeeming your investments prematurely.
Tax Implications: Be aware of the tax implications on mutual funds. Equity funds held for over one year are subject to long-term capital gains tax, while debt funds have different tax rules.
Emergency Funds: Ensure you have an emergency fund in a liquid form to cover unexpected expenses. Don't rely solely on mutual funds for short-term liquidity needs.
Diversify: To reduce risk, consider diversifying your SIP investments across different asset classes and fund categories.
Professional Advice: If you're unsure about fund selection or your financial goals, consider consulting an expert for guidance.
Stay Informed: Keep yourself updated with financial news and the fund's performance. Knowledge is the key to making informed investment decisions.
Exit Strategy: Have a clear exit strategy. When your financial goal is near, consider shifting your investments to less volatile options or gradually withdrawing funds.
Investing in mutual funds through SIP is a smart and disciplined way to reach your financial goals. It's accessible to all and can help you create wealth over the long term. However, it's essential to research, plan, and stay committed to your investment journey.
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