Did you know that millennials are the most uninsured generation in Kenya? Perhaps this is because millennials are also known to be more risk-averse when it comes to their money. Regardless, if you’re a millennial and don’t have medical coverage, your generation has some explaining. But not getting insurance at a young age can be risky, especially if it means that a major illness or accident could lead to bankruptcy or other serious financial problems later on down the road.
Many people think they need medical coverage only when they start ageing or when they become prone to falling sick and dependent more on medicines. One of the biggest misconceptions about health insurance is that people think that they do not need it if they are young and healthy. But this bubble needs to burst sooner than later.
People as young as 18 years of age can buy health insurance in Kenya. And people below the age of 18 years can be covered under the health insurance policy of their parents. It is well-known that Health insurance is as important for children as it is for adults.
The key factors that determine the health insurance premium are:
- Sum Insured
- Age of the insured
- Number of the members to be insured
- Pre-existing disease(s)
- Add-on covers (optional)
- Co-payment & deductible
Advantages of getting medical coverage at a young age
Following are some of the advantages of purchasing a health insurance plan early:
- Low Premium: Yes, you read that right. If you get medical coverage early in life, the premium rate that the insurance companies charge you is significantly less. It is because you are healthy and thus, your claim frequency is likely to be comparatively lesser than the more aged people.
- Extensive medical coverage: If you are young and fit, a health insurance policy will provide you with extensive coverage at low premium costs. You can also opt for some of the required add-on covers which can further enhance the coverage of your health insurance policy.
- More options to choose from: Being young allows you to compare health insurance plans before settling on one. The rejection of your proposal form is not likely as you are healthy and young. But, as you age, you might not be covered for certain illnesses and may be left with very few options of health insurance providers to choose from.
- No medical tests required: Many insurance providers ask you to undergo a few medical tests & health check-ups if you are old & are willing to buy a health insurance policy. The results of these medical tests are analyzed by the underwriters of the insurance company. Based on their analysis, it is decided whether the health insurance policy has to be issued or not. On the other hand, if you are young, health insurance companies will not ask you to undergo any medical tests and will issue a health insurance policy to you readily.
- No waiting period: With the increase in age, most people face one or more health-related issues. So, if you purchase a policy while having a pre-existing disease, the coverage for the same will not start immediately after the commencement of your health insurance policy. There is a certain waiting period for the different pre-existing illnesses before the coverage for the same begins. Thus, by investing early in health insurance, the waiting period for certain diseases could lapse by the time you might require medical attention for the same.
- Lifelong renewal option: With the lifelong renewal option, you can secure your finances during all your future trips to the hospital. All you need to do is renew your health insurance policy before the date of expiry of your policy. Even if you forget to renew health insurance before the expiry date, you get a grace period of 7 – 30 days to renew your policy. You can reinstate the benefits of your existing policy if you renew it in the grace period.
- Extension to cover the entire family: Initially you can start with an Individual health insurance plan, which provides coverage for people who are above the age of 18 years. This health insurance plan offers the following features and benefits:
- Covers pre and post-hospitalisation expenses
- Cashless health insurance facility at 6500+ network hospitals
- Free health checkup
- Facility for extended family coverage (You can extend the coverage of this policy to cover your parents, parents-in-law, grandparents, grandchildren, as well as dependent siblings)
- The policy term for 1, 2 and 3 years
- Covers ambulance charges
- Health insurance tax benefits
Earn the benefit of cumulative bonus: At Shimin Insurance Agency, we offer our customers the benefit of a cumulative bonus, which is an opportunity to earn a higher SI (Sum Insured) without any increase in the premium amount for every claim-free year. If you are young, it is very less likely that you file claims frequently. Thus, if you get medical coverage at a young age, you can earn a cumulative bonus for every claim-free year.
When Is The Right Time to Buy A Health Insurance Policy?
The right age to get medical coverage is in your mid-twenties and early thirties. At this age, you will most likely be in your best health and will be free of any financial responsibilities of your family. Let’s take a look at the outcome of buying a health insurance policy at different ages below:
Buying Health Insurance in Your Twenties:
If you buy medical coverage in your mid-twenties, you will be able to pay its premium easily as you won’t have any financial pressure. Your premiums will be affordable, which will allow you to opt for the best coverage as per your insurance needs. You will be able to afford additional coverage such as maternity insurance and get over its waiting period in case you plan to start a family in the coming years. Moreover, you can get a lifetime renewal facility and earn a cumulative bonus with ease.
Buying Health Insurance in Your Thirties:
If you decide to get medial coverage in your thirties, you are most likely to opt for a family health plan. You may be planning to settle down and start a family at this age if you haven’t already and would want coverage for your spouse & children as well. Further, you may want to buy additional covers for diseases, such as heart ailments, whose symptoms are known to start showing at this age. Thus, the likelihood of your health insurance premium increasing and raising a claim is greater in your thirties.
Buying Health Insurance in Your Forties And Fifties:
If you are thinking of getting medical coverage in your forties and fifties, you would need to opt for higher coverage. Your financial responsibilities will be the highest at this age and you may have developed certain ailments like diabetes, high blood pressure, cancer, etc. As a result, you may have to opt for wider coverage with critical illness and sum insured enhancement benefits. Your premium will no doubt be very high at this time. You may opt for a family floater coverage to reduce your premium to some extent but it will still be pretty high.
Buying Health Insurance after Turning 60 Years Of Age:
If you are getting medical coverage after turning 60 years old, you will have to pay a hefty premium amount. You are most likely to face severe health ailments during this age, which may need long-term treatment and hospitalization. A primary health policy will not be sufficient at this stage of life and you may require a senior citizen health insurance policy. They will come with a higher sum insured and provide coverage for AYUSH treatment, domiciliary hospitalization, organ donor expenses, etc.
In A Nutshell
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 Shimin Insurance Agency to choose the best policy within your budget.