So, you just graduated (early to mid-20s) and got your first job. Some of your friends have already bought their first car and home and others invested their money. You have been approached by insurance agents to get a policy soon. It does not make sense to you now as you think you are still too young to think that far.
Never too early to buy insurance
One thing for sure, you must not neglect the need for insurance and the earlier you start on this, the better it is for you. Yes, no doubt there will be paperwork and documentation involved but once you get past that, it will be quite easy. After you graduate, you will have a list of things to buy and commit to and a lot of Malaysians tend to ignore the need for an insurance policy. Since you are still young, it is not likely that you will fall sick so easily which means health insurance could well be the last item on your list. So, is this an unnecessary expenditure? It is not. Here are reasons why you should consider getting medical insurance before you reach 30.
Cost and affordability
One thing for sure, it will be cheaper and more affordable if you start early. The younger you are, the lower the premium will be for sure. If you start buying health insurance at the age of 26, it would be cheaper than when you are 36. Furthermore, you get more bargaining power at a younger age. If you talk to the agent at the age of 35, a lot of variables will come into play like your financial commitments, family and such.
Another issue that you must consider is the waiting period. The older you are, the waiting period is longer. A waiting period is a duration by which you are not allowed to claim as the policy is not mature yet. This can range from 90 days and up to 2 years. Imagine you have to pay without the possibility to claim for the first 2 years because of your age.
More comprehensive coverage
When you are younger, you have more options and you can choose the type of medical insurance that gives you more coverage. You get to find a plan which is more flexible and volatile. For instance, if you are in your 30s and have hypertension and you try to buy medical insurance, chances are the policy will not cover treatment for high blood pressure-related expenses (or you have to pay a very high premium because of your condition).
Protection starts while your lifestyle changes
You can count on the fact that how you live your life in your 20s will be significantly different when you are in your 30s. An early plan will protect you throughout the changes. As you grow older, the chances and risks of obesity or hypertension become higher. You cannot guarantee that you won’t start smoking at a later age which increases your risk of lung cancer. So, what you want here is to get protection early in case such instances occur at a later age.