Millennials and Health Insurance: The Rising Importance

Jun 14, 2020 (0) comment

Millennials and Health Insurance

Ever wondered if a health crisis wipes out your dreams if you don’t have a Health Insurance Plan or a Mediclaim Policy. Being young definitely has its perks. You are free from major responsibilities, you are in the prime of your health and there are dreams & aspirations to look forward to. That is why you work hard, save and create a corpus. However, a medical emergency poses a big threat to this accumulated corpus if you don’t have adequate Health Plans.

Since healthcare costs have become very expensive, meeting them is a burden. Only 18 percent of people in urban areas and 14.1 percent in rural areas are covered under any kind of health insurance scheme. Surprisingly, many Millennials know about it. They know the rising healthcare costs and despite the awareness, health insurance penetration is still low in our country. Only 1.5 – 2 percent of total healthcare expenditure in India is currently covered by insurance providers. Its low as the younger generation abstains from investing in a health insurance plan at an early age. Its the fight between Ignorance and Carelessness.

Here are some reasons why a health plan is ignored and a reality check highlighting the importance of a health plan against each circumstance

Millennials believe they are immune to ailments

Youth is definitely a wonderful period when your health is at its peak. Since ailments grip those with weak health, you find yourself immune to the risk of contracting illnesses. That is why many believe that a health plan can be done away with the product.

Reality check- Have you given any consideration to accidents? Accidents have become quite common and they pose a serious life risk. If one is involved in an accident and needs intensive treatment for a week, for sure it’s going to put a gaping hole in his pockets. Besides accidents, in the modern age, illnesses have also become common among millennials. Whether you blame it on the stress, preference for junk food, smoking or drinking, youngsters today are equally prone to ailments as adults. So, if you want to avoid the financial implications of rising ailments and accidents, better equip yourself with a health insurance plan.

Rising income leads to increased spending on lifestyle and healthcare services. Lifestyle diseases are here to stay and will account for a bigger hole in your pockets. Diseases like cardiac, cancer, internal organs are poised to rise apart from the standard ailments of diabetes or blood pressure.

Employer provides group Health Plan. Why buy one?

With millennials getting jobs in corporates at an early age, a group health plan comes wrapped in their CTC package. It covers them and their dependent family. With this given as part of employment terms, an independent Health plan is given a miss.

Reality check- Your group health plan is valid as long as you remain in the employment of your current employer. Do you promise to do so for your entire career? The modern generation does not stick to one job for their entire career. They switch jobs or Start-up own venture to nurture their dreams. As such the group health plan holds little relevance. Your new employer might not have a group health plan or may not cover entire family or may have a limited coverage plan. Moreover, as start-ups are booming across the country, the younger generation is busy riding the trend. Launching new products, applications, prolonged working hours, challenging deadlines are the rage. If you are in a self-employed occupation, you wouldn’t have any employer-sponsored health plan for yourself. Wouldn’t you need a Health plan then?

Credits: Instabima

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