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Advantages of Individual Health Insurance for People Aged 20 to 35

Roocha KanadeDec 10, 2025

While in your 20s and 30s, buying an individual health insurance plan might seem unnecessary as there might not be a lot of medical treatments required. But as you age, the chances of illnesses or the need for medical treatment may increase. Buying a health plan then can have some downsides like longer waiting periods, higher premiums, etc.
Buying health insurance early helps you get affordable premiums, continued coverage, less number of exclusions, etc. Let’s explore why getting an individual health insurance plan between 20 and 35 can be one of the smartest money moves you make.

"Feature image showing the benefits of individual health insurance for young adults, highlighting financial savings and comprehensive protection."

Contents

Why Buy Individual Health Insurance Early in Life?
Financial Benefits of Individual Health Insurance for Young Adults
Health and Coverage Advantages of Getting Insured Early
Tips for Buying Individual Health Insurance in Your 20s and 30s
Conclusion
Frequently Asked Questions

Why Buy Individual Health Insurance Early in Life?

Buying health insurance early is advantageous because you might not suffer from a lot of health issues like hypertension, or diabetes. When you have less health issues, an insurance company considers you a low risk customer. Such low risk customers are offered better pricing because the chances of claims are lower. Moreover the underwriting process (the process of setting actual coverages and exclusions, pricing, etc. for a particular customer).

Another major advantage is waiting periods. Every individual health insurance plan comes with waiting periods for pre-existing diseases and specific treatments. If you buy the policy in your early 20s, these waiting periods run out much before you actually need them. Even if you develop a condition later in life, your cover will already be active.

Example: Imagine two colleagues, Riya and Sameer, who decide to buy the same individual health insurance plan with a ₹10 lakh cover.

Riya is 25 years old. She leads an active lifestyle and does not suffer from any health issues. Her individual health insurance premium comes to about ₹8,000 a year.

Sameer is 40 years old. He is healthy overall but has mild BP fluctuations. Because of his age and higher medical risk, the same plan costs him around ₹14,000 a year.

The difference is clear. Riya pays less, gets her waiting periods out of the way early, and enjoys full coverage by the time she is in her thirties. Sameer pays almost double and still needs to complete waiting periods at an age when he might actually need the cover.

Premium and Benefit Comparison

Age	Approx Annual Premium	Health Risk Level	Waiting Period Advantage
25 years	Around ₹8000	Low	Gets over early, cover ready when needed
40 years	Around ₹14,000	Higher	Still has to serve waiting periods at an older age

Financial Benefits of Individual Health Insurance for Young Adults

Here are some benefits of buying individual health insurance for young adults.

Discounted premiums: When you are young, you might not need much medical attention except during an unfortunate accident. So your health insurance premiums are automatically discounted as compared to an older person.
No Claim Bonus Builds Over the Years: Individual health insurance offers a No Claim Bonus whenever you do not make a claim during the policy year. This bonus increases your sum insured without increasing your premium. When you start early, your NCB has many years to grow. By the time you reach your 40s, you may have a much higher cover at no extra cost simply because you began early.
Tax Benefits Under Section 80D: As a young policyholder, you can claim tax deductions under Section 80D on the premiums you pay. This reduces your taxable income and gives you yearly savings. It is a simple benefit but one that adds up as long as you continue the policy.

Health and Coverage Advantages of Getting Insured Early

Health insurance taken in your 20s or early 30s gives you access to wider benefits that go beyond premiums or tax savings.

Less chances of rejection: Since young people may not suffer from any major health condition, their health insurance application might get approved easily.
Easy completion of waiting periods: If you start your policy early, the waiting period for future health conditions ends well before you may actually need care. This means even if you develop a lifestyle condition in your late 30s or early 40s, you will already be covered.
Access to Better Coverage Options: Buying early gives you the freedom to choose from more plans, higher sums insured, and better add-ons. You can pick top ups, personal accident covers, or room rent flexibility easily because your health profile is strong.
Long Term Financial Security and Lifestyle Benefits: Good health insurance in your 20s or 30s is more than a safety net. It supports long term financial independence. As medical costs continue to rise due to inflation, an early policy ensures you are not caught off guard by sudden expenses. It also gives you the flexibility to choose lifestyle based add-ons later in life. For example, if you plan to start a family in a few years, you can add maternity cover in advance so that waiting periods are completed on time.
Avoid sudden increase in premiums: When you buy early, you also avoid future premium spikes that are common with age. Your base premium stays lower, making it easier to maintain long term. Individual health insurance secures your future while letting you focus on building your career and life goals.

Tips for Buying Individual Health Insurance in Your 20s and 30s

Here are a few simple tips to help you make the most of your decision.

Start with basic coverage of five to ten lakhs.
Add riders like critical illness or personal accidents later as your needs grow.
Do not rely only on employer provided group cover. It ends when you change jobs.
Compare plans online and read the inclusions and exclusions before buying.

Starting small is better than starting late. The cost advantage keeps growing every year you continue the policy.

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Conclusion

Even if buying health insurance may not be on priority for people in their early 20s or 30s it is a good idea to add it to the financial portfolio. This will help secure the future financially when health may deteriorate because of age or an illness. It’s one of those decisions that quietly pays off year after year.

Frequently Asked Questions

Here are common questions on Advantages of Individual Health Insurance for People Aged 20 to 35

Why should I buy individual health insurance at a young age?

You should buy individual health insurance at a young age because you can get discounted premiums, less exclusions, and you can serve the waiting period easily.

How much sum insured should I buy in my 20s?

In your 20s, the sum insured of ₹5 lakhs to ₹10 might be sufficient depending on your medical needs.

Does employer health insurance cover enough medical expenses?

No, an employer's health insurance may only cover basic medical needs. But in case there are any major illnesses or emergencies, then you would need a comprehensive health plan.

Can I get tax benefits as a young policyholder?

Yes, as a young policyholder you get tax benefits on the premium you pay for buying a health insurance plan. You can continue to get it as long as you pay the premium.