I’m a 21-year-old female looking to become a freelancer. Should I buy a health cover now or in a few years?

Hi, I am 21-year-old female and plan to become a freelancer after graduating from college. Should I buy a health insurance policy now or a few years later?

Name withheld

Reply by Shreeraj Deshpande, Head of Health Business, SBI General Insurance.

As a young individual entering the world of freelancing, it’s commendable that you’re taking the initiative to think about your health insurance needs. You should prioritise financial security as freelancers often lack employee benefits provided by organisations, such as group health insurance. It is recommended to have an individual health insurance policy so that you are able to create a safety net that provides you financial protection against unforeseen medical expenses.

There are many things to consider when purchasing a health insurance policy:

One key aspect is the cost of premiums. Generally, health insurance premiums tend to rise with age. You can take advantage of lower premiums by acquiring a policy at a younger age. Additionally, if you currently have no pre-existing medical conditions, it may be easier to qualify for comprehensive coverage.

Another factor to consider is coverage for pre-existing conditions. If you develop any health conditions before purchasing a policy, they may be regarded as pre-existing. Insurers typically impose waiting periods for coverage related to pre-existing conditions. Obtaining a policy earlier allows you to commence the waiting period sooner, ensuring coverage for any future treatment.

Policy flexibility is an essential aspect to evaluate. Health insurance policies typically impose waiting periods for specific coverage, such as maternity benefits. If you have plans to start a family in the near future, purchasing a policy now ensures that you will be eligible for maternity-related benefits once the waiting period is over.

While it’s essential to consider these factors, ultimately, the decision depends on your specific circumstances and preferences. It is recommended to consult with a qualified insurance advisor who can evaluate your needs and guide you in selecting the best health insurance policy.

 (Views expressed by the investment expert are his/her own)