The Importance of Health Insurance for Young Adults in India

The Importance of Health Insurance for Young Adults in India

Health insurance can be a scary thing to tackle, especially when you’re young! But, knowing the basics and the significance of having health insurance in India will be essential for your health and financial prosperity. So, we put together a complete guide to health insurance for young adults by covering the basics and talking about the benefits, types of coverage, terms you will need to know, and tips on how to pick the plan best for you.

Why Health Insurance Matters for Young Adults

Health insurance is a critical part of any financial plan. In the event of illness or injury, it covers medical expenses and helps reduce financial dependence in times of distress. Here are three compelling reasons why you need insurance for health protection:

  1. Financial Safety : Likely the most clear explanation is financial security. Such a policy protects you against hospitalisation fees, the cost of surgery, and sometimes even out-patient expenses, to avoid dipping into your savings during the time of medical emergencies.
  2. Quality Healthcare : With a good health insurance plan, you will have the ability to get top-quality healthcare services. Cashless treatment at top hospitals – Several insurance players have tie-ups with good hospitals, providing cashless treatment options.
  3. Preventive Care : Many health insurance plans pay benefits for preventive care, such as regular check-ups and vaccinations. In doing so, it facilitates early diagnosis and treatment of health problems and helps to maintain the general state of well-being.

Types of Health Insurance Plans

Reading about the health insurance plan types can help you choose them wisely.

Individual Health Insurance: This covers a single person and is great for young adults entering the workforce. It offers hospitalisation benefits and covers pre and post-hospitalisation costs along with day-care treatments sometimes.

Family Floater Health Insurance: A family floater plan covers your whole family under a single policy. This cost-saving measure also guarantees that entire household members have health coverage without requiring separate policies.

Group Health Insurance: Normally offered through employers, it gives benefits to employees and in some cases to their families. Although it helps, it should also be complemented with your own personal health insurance plan.

Critical Illness Insurance: This plan offers coverage for certain critical illnesses such as cancer, heart attack, and stroke. It pays as a lump sum of money when diagnosed, for treatment purposes or any other expenses.

Personal Accident Insurance: This type of insurance provides coverage against the bills caused by accidents. It also offers compensation in the event of disability or death as a result of an accident.

Key Terms in Health Insurance for Young Adults

Learning the major terms used in health insurance can make it easier to read the policy.

Premium: The premium is the payment towards coverage that you give to the insurer. Payments can be deposited on a monthly, quarterly, or even yearly basis.

Deductible: A deductible is the amount paid out of pocket before an insurance provider will pay the remaining balance. Higher deductibles generally lead to lower premiums.

Sum Insured: The sum insured is the maximum amount insured by the insurance company per annum as medical expenses in a respective policy year.

Co-payment: Simply put, co-payment is defined as the percentage of your medical bill you have to pay while the rest will be paid by your insurance company.

Network Hospitals: These are the hospitals that are in contract with the insurance company and provide cashless treatment.

How to Choose the Right Health Insurance

Access your Needs

Evaluate your health needs and financial status. Think about aspects such as family medical history, lifestyle, and health risks in the future.

Compare Plans 

Compare plans on coverage, premium, co-payment, and other terms. Use online comparison tools to get in-depth analysis.

Check the Network Hospitals 

The insurance provider must have a maximum network of hospitals in your location providing cashless treatment.

Read the Fine Print 

Familiarise yourself with the policy add-ons, exclusions, waiting periods, and claim filing process. Avoid surprises later by reading the small print.

Read Customer Reviews and Ratings 

Check customer reviews and ratings for insurance companies. Select an intermediary with a good claim history and follow-up service.

Benefits of Health Insurance for Young Adults

Many young adults take health insurance for granted, but there are three remaining advantages to obtaining a plan.

Lower Premiums 

Health insurance premiums are usually a lot cheaper for young adults because they are considered healthier and of lower risk to insure. Early purchase of a policy can lock in the lowest premiums.

Comprehensive Coverage 

Many policies include comprehensive coverage that includes hospitalisation, preventive care, and even mental health services—all of which are particularly important for young adults.

Tax Benefits 

The premiums paid towards your health insurance can be eligible for tax deductions under Section 80D of the Income Tax Act, which would reduce your taxable income.

Peace of Mind 

One of the biggest advantages of having health insurance is knowing that you are secure financially in any emergency related to medical issues.

Common Myths about Health Insurance

There are several common myths about health insurance that can keep young adults from wanting to purchase it.

Health Insurance is Pricy 

Of course, you may have to worry about premiums, but you should think of going around minefields to get affordable health insurance. Moreover, the expenses of being uninsured could add up to considerably more in case you experience a powerful necessity for innovative intervention.

It is for Old People Only 

Health insurance helps individuals across all age groups. Lower premium rates and comprehensive coverage for young adults.

Inadequate Coverage via Employer-Provided Insurance 

Group health insurance provided by employers might not be sufficient in all circumstances. Your best bet will be to add extra protection with your very own supplemental policy.

It is Complicated to Understand 

Health insurance is never simple to grasp because, though if you study and enkindle the facts and benefits, it becomes pretty easy.

Frequently Asked Questions

Why should young adults have health insurance?

Both financially and safely, health insurance assists young adults who need it the most.

How do I choose a health insurance plan?

When you want to avail of a plan, consider whether it covers your needs well enough, the premium amount, network hospitals, etc.

Tax Advantages of Health Insurance Premiums?

Yes, the amount paid towards health insurance is tax deductible up to Rs 25,000 under Section 80D of the Income Tax Act.

If you have a pre-existing condition, can you still get health coverage?

No, although there might be a waiting period before coverage for pre-existing conditions is effective. Waiting periods can be shorter, depending on the plan & condition.

Do I need my own health insurance if my employer offers one?

Yes, personal health insurance plans give you better coverage and protection; hence, your security in terms of coverage is ensured.

At what age should you buy medical insurance?

There is no right time to buy health insurance, the sooner you can get one the better it is for you. If you’re younger, then you will be able to afford a comprehensive plan for the price of less than one paycheck.


Having health insurance is a critical part of a young adult’s financial planning in India. Instead, it gives you financial security and peace of mind. Read on to note the various kinds of plans, the important phrases that go along with them, and how you can opt for a plan that will safeguard your health as well as your fiscal future. An insurance policy offers countless benefits and does not wait for a medical emergency to head home, the most important one of all.


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