Buying insurance when you are older? Here are the things you need to know!
Besides of medical history, age is the main factor that determines your health insurance premium rates. The lowest rates for the adults starts at the age of 21. The largest increases occur for adults over age 50 when using federal ratios. Quoted from valuepenguin.com, below is the graphic illustration of how the insurance premium rates increasing for people who’s at their 20’s, 30’s and how it compares to the one who’s at their 50’s and above.
From the data we have learned above, the increase percentage is more than 100%, when you are 50 and above. While the chart for ages under 30 is much more sloping in terms of rate increase. Even though those facts are not surprising anymore, there are still a lot of young people who are not aware and underestimate the benefit of buying insurance covers when they are still under 30 years old, putting aside the fact that the rate percentage will be much steeper as time goes buy.
Insurance awareness in young people
When you are young, mentally and physically healthy, do a lot of physical activities, this must be the time when you think you won’t go to hospital a lot. Well, maybe once every 3 months ’cause you got flu or fever because the weather is bad. But what if you got a serious medical condition caused by accident, or in the worse case, chronic illness that takes a long time and effort to heal. In fact, quoted from National Library of Medicine, 20-30% young people have chronic illness, defined as one that lasts longer than six months.
Understanding that fact, buying insurance when you are young, seems like the wise decision. Not only because of the premium pricing, but also because young people are not avoidable from chronic illness, and also the medical condition caused by accidental things.