While younger expatriates might be tempted to make savings by skipping on medical insurance, this is a false economy. We look at the reasons why you should take out a comprehensive health insurance policy even if you are young and fighting fit.
Young, but not invincible
A study published in the Lancet Oncology in December 2024 revealed that increasing numbers of young people are developing bowel cancer. This continues a disturbing trend in early-onset cancers, including breast, colon, oesophagus, kidney, liver, and pancreas, which started in the early 1990s. The number of strokes in young people is also on the rise and heart attacks are also becoming increasingly common.
There are a number of factors at play here from poor diets to increasingly sedentary lives and a lack of sleep so it’s a good idea for all of us to take a look at lifestyle improvements we can make to minimise the possibility of becoming ill.
Nevertheless, fate sometimes simply deals an unjust hand. Chris Hoy is a sad example of how youth and keeping fit don’t make you invincible.
That’s one reason why we believe every expatriate, regardless of age, should protect themselves, their finances, and their families by taking out a comprehensive medical insurance policy.
Nine reasons to take out medical insurance when you’re young (even if you think you don’t need it!)
Taking out medical insurance while you’re young offers numerous long-term benefits as you age. These include:
- Lower premiums
Insurance premiums are generally lower for younger people because they are considered lower risk. Starting young allows you to lock in affordable rates compared to applying later in life when premiums may increase significantly due to age or health conditions.
- Coverage for pre-existing conditions
If you develop health conditions as you age, they may be considered ‘pre-existing’ if you apply for insurance after diagnosis, and some policies might exclude them from coverage. Getting insured early ensures continuous coverage for any conditions that develop over time.
- No waiting periods
Many insurance plans have waiting periods for certain benefits, like coverage for pre-existing conditions or specific treatments. If you get insurance young, you’ll likely complete these waiting periods well before you need those benefits.
This is particularly pertinent for young expatriate women who may want to have children. Insurance plans typically require a waiting period of 9 to 24 months before maternity-related expenses, such as prenatal care, delivery, and postnatal care, are covered. By securing insurance early, young women can ensure they don’t become pregnant before the end of the waiting period.
- Cumulative benefits
Some policies offer rewards, such as a no-claim bonus, for each year you don’t file a claim. These benefits may increase your coverage limit or reduce your premiums over time.
- Access to better policies
Younger individuals are often eligible for more comprehensive plans with fewer restrictions. As you age, insurers may impose tighter conditions or decline coverage altogether.
- Preventive care
Many insurance policies cover preventive care services such as routine check-ups, vaccinations, and screenings. Regular access to these services can help detect and address health issues early, potentially avoiding serious problems later.
- Financial security in your prime
Unexpected medical expenses can easily derail your financial planning if you have to delve into your savings to pay them. Having insurance early on ensures that your finances are protected during your prime working years, whatever life throws at you.
- Continuity of care
If you stay with the same insurer over time, you build a history with them, which can make the renewal process easier and ensure uninterrupted coverage as you age.
- Peace of mind in retirement
Retirement may seem far off but any 50-something will tell you just how quickly it creeps up. Having medical insurance from a young age ensures you remain covered as you transition into retirement, a phase where healthcare needs typically increase. Starting early with health insurance isn’t just about immediate coverage – it’s a strategic move to safeguard your future health and finances.
Here at Infinity, we understand that budgetary constraints may be a factor in delaying taking out medical insurance, but we would encourage all young expatriates to prioritise health cover and try to make savings elsewhere.
We work with many health insurance providers and are tied to none so our consultants can compare policies and prices to find one that suits your budget and your needs.
If you’d like to discuss your requirements with one of our highly knowledgeable team, contact us today for an informal chat.
A leading provider of expat financial services and wealth management services across Asia.
