Health Insurance at 40

Why Health Insurance Becomes Crucial at 40?

Health insurance is a must these days. The treatment expenses are going up, and health risks are always around the corner, which may result in extreme financial worries. If you are 40 and still don’t have a health insurance policy, do not worry. It is never too late to buy health insurance in your 40s. Investing in the policy at this age saves you from paying high medical bills and offers you peace of mind. However, at this age, you may have to compromise on the coverage and the premium.

To understand why buying health insurance at 40 is crucial, the benefits of a health insurance plan, the type of policy you should pick,  and how much coverage is ideal

Keep reading!

Why Health Insurance is a Must at 40?

At 40, the risk of medical emergencies increases, and even a short hospital stay can drain all your savings.

Health insurance at 40 is important due to:

• Increased risk of chronic illnesses
• Higher medical inflation
• Family responsibilities such as children’s education and ageing parents
• Reduced ability to absorb sudden medical expenses

Benefits of Buying Health Insurance at 40

Having health insurance at 40 offers several advantages to the policyholder.

The following are the benefits of health insurance:

1. Financial Protection: The cost of medical treatments is going up every day, so having health insurance protects your savings and investments from being wiped out by hospital bills.
2. Hospitalisation Benefits: Health insurance covers the cost of hospitalisation, including room rent, doctor fees, nurse charges, medical procedures, surgery fees, and medicines.
3. Coverage for Pre- and post-hospitalisation: These plans often include pre- and post-hospitalisation expenses like diagnostic tests, medicines and follow-up consultations.
4. Yearly Medical Check-Ups: You get the benefit of annual health check-ups, which help in the early detection of potential health problems and allow you get timely treatment.
5. Ambulance Services Covered: A comprehensive health insurance policy provides coverage for ambulance services, which eventually helps by transporting the patient to the nearest hospital during urgent medical situations.
6. Tax Advantages: You are eligible for tax benefits under Section 80D of the Income Tax, 1961, for the premium you have paid for your health insurance plan.
7. Coverage for Lifestyle Diseases: Many insurance providers cover lifestyle-related illnesses such as diabetes, high blood pressure, and heart disease after a waiting period.
8. Peace of mind: Knowing that you have health insurance offers you peace of mind, especially during urgent medical situations.

Things to Keep in Mind While Purchasing a Policy at 40?

The following are the elements you should consider while buying a policy:

• Ensure you have Sufficient Coverage: It is one of the most essential factors you need to consider. Pick a health insurance policy that provides adequate coverage. This is because you are more prone to illnesses and chronic ailments.
• Look for Exclusions/limitations: Carefully, go for a plan that has either no exclusions or lower exclusions and sub-limits so that you do not have to face any issues later.
• Check Premium Amount: At this age, the premium will only increase as older adults develop age-related ailments or may already have pre-existing conditions. However, you don’t have to worry about the premium amount because a high premium will be far more worthwhile than using your savings.
• Higher chances of making a claim: At 40, you may have a higher chance of filing a claim. People are less likely to file a claim when they are young. But as they get older, things might change. Certain health issues are highly likely to affect people 40 to 60 years of age and older. You might get the most out of your health insurance plan if you are in your 40s and protect your savings by filing a claim in the event of a medical emergency.
• Get Coverage at the right time: When people in their 40’s, mainly those who are healthy, don’t bother about a health insurance policy. However, it is wise to invest in health insurance at the beginning of your 40s rather than waiting until you fall ill. Buying a policy early ensures better coverage and fewer restrictions.

Common Mistakes to Avoid While Buying Health Insurance at 40

Some of the mistakes that you should strictly avoid are listed below:

1. Picking a policy without checking coverage: Usually, when purchasing a policy, individuals concentrate on lower premiums and not the coverage. Policies with lower premiums will come with limited benefits, which may be insufficient at this age. Instead, go for a plan that offers sufficient coverage.
2. Ignoring Policy Exclusions: Every health insurance policy comes with certain exclusions, and being unaware of these can result in claim rejection or unexpected expenses later. It is advisable to carefully understand the policy exclusions related to pr- existing diseases, specific treatments, waiting periods, and non‑medical expenses.
3. Lack of Research: It is always recommended to thoroughly research the health insurance plans offered by different insurers. Buying a plan without researching and comparing different policies can result in insufficient coverage or unnecessary expenses. Comparing policies can help you find the right coverage according to your age and medical requirements.
4. Not reading the policy wording carefully: Carefully read the terms and conditions that are mentioned in the policy document. Pay special attention to the things that are not covered to avoid any misunderstanding later.
5. Underestimating the Required Sum Insured: Choosing a low sum insured can sometimes reduce your premiums, but it can be insufficient during serious medical emergencies.

Do I Need to Undergo Medical Tests at 40?

Yes, most health insurance companies require a medical test before you buy a policy at this age. Some common tests you may need to undergo are:

• Blood Pressure
• Fasting Blood Sugar
• Post‑Prandial Blood Sugar
• HbA1c
• Complete Blood Count (CBC)
• Lipid Profile
• Liver Function Test (LFT)
• Kidney Function Test (KFT)
• Urine Routine Test
• ECG
• Height & Weight (BMI)

Note: These tests can vary from insurer to insurer.

However, remember to disclose your existing illnesses or past surgeries, if any, to the insurance provider in order to avoid unpleasant surprises later.

How Much Health Insurance Coverage Is Ideal at 40?

When choosing health insurance at 40, selecting the right amount of coverage is important because at this age, the basic coverage may be insufficient to cover the cost of your medical expenses.

However, the ideal coverage can vary based on your health status, geographical location, and medical history. Health insurance experts generally recommend the following coverage at this age:

• Individuals: Rs. 10–15 lakh
• Family floater: Rs.15–25 lakh

Summing Up

For a 40-year-old individual, a health insurance coverage of Rs. 10-15 lakh can be considered ideal as it serves as a reasonable starting point, with additional layers of protection through super top-ups and critical illness covers.