Health Insurance for Young Adults

When you're in the prime of your life, healthcare may seem like a redundant expense. Unfortunately, there is no right age for a disease to strike, so it's best to be prepared. With the rise in medical inflation, the age bar for developing chronic illnesses dipping, and the general unpredictability of life, it's better to be safe than sorry. With that in mind, this article discusses the need for young adults to have a health insurance plan and lists the top 5 health insurance plans for young adults. Let's jump straight in: 

Pro tip: The health insurance market can be a labyrinth. Instead of spending hours navigating through the hundreds of policies out there, why not book a 30-minute call with our expert IRDAI-certified advisors? We don’t spam or pressure you to buy. Just honest insurance advice.

Why Young Adults Should Consider Taking Health Insurance

The term' young adults' is vague. For the sake of simplicity, let's narrow it down to the age bracket of 18-22. Young adults falling in that age range often feel invincible, but health issues can surface considering their lifestyle. Stress, irregular sleep, poor diet, and sedentary lifestyles contribute to concerns like anxiety, digestive issues, and even chronic conditions like hypertension. Accidents, sports injuries, and injuries sustained during travel may also add to medical expenses. With that in mind, let's take a look at why young adults may consider taking health insurance:

• Lower Premiums: Premiums get more expensive as you move from one age bracket to another. So, the earlier you buy a health insurance policy, the more pocket-friendly it will be. Moreover, if you're in the age range of 18-22, you're unlikely to have any pre-existing diseases(PEDs). This avoids the addition of 'loading charges' to your premium. Loading charges generally vary in the range of 10%-40% but can be higher depending on the severity of the conditions. 
• Comprehensive Coverage: The likelihood of developing an illness increases as one ages. Most insurers will happily offer their services when one is young and healthy. On the flip side, if one delays the purchase for a long time, they may develop an illness that insurance companies usually do not cover. For example, cancer is a disease that insurers generally include in their list of permanent exclusions if it's present before buying the policy. On the other hand, if one develops it after purchasing the policy, it will be covered immediately. 
• Unexpected Emergencies: Life is unpredictable, and medical emergencies can strike without warning, whether due to an accident or a sudden diagnosis. Beyond the emotional toll, the financial burden can overwhelm you and your family. Having health insurance early ensures you're prepared for the unexpected without draining your savings.
• Moving out of the family floater plan: Many family floater plans will only cover children until they reach a certain age. That age may vary from 18 to 30, but adults will inevitably move out of the family floater plan purchased by their parents. Securing a health insurance plan for yourself provides continuous coverage and security. 
• Lifestyle-related illnesses: Unhealthy habits like smoking, excessive drinking, and poor diet are becoming more common among young adults, leading to a rise in conditions such as hypertension, diabetes, and heart disease. While these illnesses were once associated with older individuals, they now affect younger people. Health insurance ensures access to timely medical care and financial protection against expensive treatments that may arise due to lifestyle-related health issues.

Key Features for Young Adults to Look for in a Health Insurance Plan

If you're new to the insurance world, understanding policy terms and zeroing in on a policy that fits you can be an uphill battle. Thankfully, we're here to make it easy for you. Take a look at the points below to figure out which features you must look out for when finalising a policy:

• Adequate sum insured: Although no ideal sum insured exists, opting for one on the higher end of the spectrum (Over 10-15 Lakhs) is still wise. If you're young, your premiums will naturally be low. It'd be wise to leverage this opportunity and opt for a high sum insured that would be sufficient no matter which disease one contracts.
• Minimal Restrictions: Select a policy that has no co-payment, no room rent restrictions, and no disease-wise sub-limits. Hence, you get full coverage in case of hospitalisation and do not have to shell anything out of your pocket. Additionally, go for a policy with minimal waiting periods to avail yourself of the coverage as soon as possible.
• Insurer's Metrics: Choosing the right policy is essential, but getting the right policy from the wrong insurer can defeat the purpose of getting health insurance in the first place. Therefore, it is important to check an insurer's Claim Settlement Ratio (the CSR tells us about the number of claims settled in a policy year out of all the claims a company receives) and Incurred Claim Ratio (the amount paid out in claims vs the amount received in premiums by an insurer) before finalising the policy purchase. The CSR of the insurer should be =>90%, and the ICR should be in the range of 55%-80% to maintain a balance between claim reliability and financial stability.
• Insurer's Hospital Network: Network hospitals are partner hospitals where the insured can avail of cashless treatments for authorised hospitalisations. When choosing an insurer, prioritise one with a vast network (10,000+ hospitals) and ensure that reputable hospitals near you are included for easy access to quality care.
• Bonuses and Restoration: Restoration of the sum insured and no-claim bonuses are two of the best features to have in a health insurance policy. While the restoration benefit replenishes your sum insured once you make a claim, the no-claim bonus adds a percentage of your sum insured to your base cover every year you go without making a claim. Choose a plan with unlimited restoration perks upon partial exhaustion for different illnesses with a substantial bonus percentage.

Types of Health Insurance Plans Available for Young Adults

Let’s take a look at the different types of health insurance plans available for young adults in India in 2025:

• Individual: Individual health insurance plans cover a single person - the insured. They offer more flexibility and customisation as only one person's age, lifestyle, and health status are considered.
• Family-floater: Family floater plans cover the policyholder and their dependents, such as spouses, kids, and parents/in-laws. These plans allow for lesser customisation due to a family's diversity in age, lifestyle, and health status. They are generally more expensive as the age of the oldest member in the family is used to calculate premiums.
• Super Top-ups: A super top-up is a unique health insurance plan with a high sum insured and a low premium. The catch is that they have a component called 'deductible', which the insured must pay to trigger the super top-up plan. However, the deductible does not need to be paid from the insured's pocket; the base insurance plan can be used to cover the deductible amount.

Employer-extended Plans: Employer-extended or corporate plans are group insurance plans where the employer is the master policyholder. These plans have no room for customisation and only cover you till the company employs you. However, they also come with zero waiting periods and generally provide maternity coverage.

Benefits of Taking a Health Insurance Policy As A Young Adult

• Tax Benefits: Under Section 80(D) of the Income Tax Act, policyholders are liable to receive up to Rs 1 lakh in tax deductions for themselves, their spouse, their parents, and their kids.
• Future-proofing: Health insurance is a long-term commitment that protects both your health and finances. By getting a policy early—say at 22—you secure lifelong coverage, provided you continue renewing it. This ensures financial security in case of serious illnesses or hospitalisations in the future.
• Higher sum Insured: Getting a high sum insured is easier when you're young because the premiums are low. Not just that, insurers are more willing to extend policies with high sums insured to people with a lower risk of making claims, i.e., people with no PEDs. 

Common Mistakes Young Adults Make While Buying Health Insurance

• Delaying Purchase: Many young adults assume they don't need health insurance because they're healthy. However, buying early means lower premiums, shorter waiting periods, and continuous coverage before any conditions arise.
• Not reading through policy wording: Reading through the fine print is extremely important when purchasing a policy. A policy includes terms, conditions, and exclusions, understanding which, while making the purchase, is essential to preventing a shock while making a claim.
• Buying the most inexpensive policy: Opting for the cheapest policy may seem like a smart financial move, but it often comes with restrictions like sub-limits, co-payments, or limited hospital networks. It's essential to balance affordability with comprehensive coverage.
• Under-insuring: A low sum insured might save on premiums but can leave you financially vulnerable in an emergency. With rising healthcare costs, choosing adequate coverage is crucial to avoid out-of-pocket expenses.
• Relying solely on employer insurance: Corporate insurance is valid but may not provide sufficient coverage for all diseases. Also, it lapses when you change jobs or retire.  Supplementing your corporate policy with a strong retail policy is vital to ensure uninterrupted coverage. 

Top 5 Health Insurance Plans for Young Adults

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Conclusion

Buying healthcare as a young adult isn't just about financial security; it's about making a long-term choice to help you reap rewards for the rest of your life. With rising healthcare costs and the unpredictability of life, it's wise to invest in health insurance now instead of later. An early policy ensures comprehensive coverage, lower premiums, and lifelong protection.

If you're a young adult trying to navigate the labyrinthine maze that the concept of insurance can be, you're not alone. Feel free to reach out to any Ditto advisor for a free 30-minute consultation. We'll help you find the policy that best fits your needs without ever spamming you.