When you're young and healthy, you might not be too worried about getting sick. But you have to understand that your health is nothing to take for granted. Medical emergencies and illnesses can hit anyone at any time. If you live in the USA, you will be looking at a very expensive medical bills

Health insurance will help you cover a surprise medical bill will minimal out-of-pocket expenses depending on your plan. If you buy health insurance in your 20s, you'll enjoy lower premiums and better coverage. You can also plan your finances better because you’ve eliminated an uncertainty.

Still wondering whether to get insurance? Let's discuss all the reasons for purchasing health insurance in your 20s.
 

Top Benefits of Getting Health Insurance in Your 20s

Purchasing health insurance when you're young is one of the best investments you'll ever make. It will help you protect your finances and make other investment decisions wisely. 
 

Low Premiums

Usually, the premium you have to pay depends on your age. So, insurance companies will charge you a lesser premium when you are young. It is primarily because you're less likely to develop a severe illness in your 20s than in your 60s. 
 

Free Preventive Medicine

Most insurance plans are required to cover 100% of preventative medicine, screenings, checkups, vaccinations, etc. This puts you way ahead of the game health wise and can catch problems early.
 

No Worry During the Waiting Period

Some health insurance plans come with a waiting period, between which you can't claim benefits even though you are paying for it. Generally, this period is not more than 30 to 90 days, according to the Affordable Care Act (ACA). 

So if you start a new job without insurance, it could be another 90 days before your benefits kick in. That is a lot of time to be open to a $35,000 appendectomy.
 

Tax Benefits

When you buy health insurance through state or federal marketplace, COBRA, and Medicare premiums (Part B and D) the premiums are tax-deductible. This can have a positive impact on your taxes, allowing you to save more at a young age.
 

Pre-Medical Health Check-ups Covered

If you're above 40, most insurance companies will ask you to undergo a health checkup to determine underlying illnesses. Only after meeting the terms, you'll receive the insurance. And the process is often hectic.

Not in your 20s, though! You might undergo health checkups at this age, but not too many. Plus, the insurance covers your annual checkups and preventive medicine expenses. So, it's a win-win situation.
 

Pre-Existing Conditions and Possible Changes to the Law 

Under the ACA health insurance companies can no longer deny you coverage for pre-existing illnesses. However, there have been proposals in Congress to relax this protection.

Some proposals would allow insurers to deny claims related to pre-existing conditions for a limited period of time (say 1-2 years). Other proposals would only allow insurance to deny coverage if the application had a lapse in their insurance coverage. So getting health insurance and keeping it is the safest place to be.
 

Difference Between Medical Loans and a Health Insurance

Medical loans are personal loans that you can use to pay your medical bills. You can easily get them from banks and money lenders. However, these are unsecured, as there isn't any collateral attached to them. They typically have a high interest rate, somewhere between a car loan and a credit car.

If you fail to pay the amount back, you won't lose any property, but it will wreck your credit rating. Compared to health insurance, which isn’t cheap, it may still be a better deal financially than potentially going deep into debt with a hospital or other health care provider.
 

Why Health Insurance is Better Than a Medical Loan

Unlike medical loans, health insurance plans offer better coverage and even tax benefits. 
 

Better Medical Facilities

Health insurance plans offer you access medical facilities with no questions asked. You show up with your insurance card and your health care provider will bill the insurance company. 

Medical loans on the other hand take time open. Such delays can be dangerous for your health. Not to mention health care providers treat the uninsured suspiciously since they want to make sure they get paid.
 

More Affordable

You have to pay monthly premiums for your health insurance plan. In addition, you get benefits such as small copays, discounted services, free medical checkups, etc.

In the case of medical loans, you have to pay out of pocket for everything, then interest on top of that. Over time, that could be much more costly than health insurance.
 

Doesn't Affect Credit Score 

Health Insurance premiums have no impact on your credit score. But, if you miss a payment on your medical loan this will ding your credit score.. That might prevent you from getting an educational or home loan later on.
 

Save Tax Money

Health insurance plans allow you to save money on taxes, as most premiums are tax-deductible. 

That's not the case for medical loans, as you won't be eligible for any tax benefits or deductions. So, automatically these loans will prove to be costlier later on.
 

Endnotes 

As our lives are full of uncertainties, being prepared is the best we can do. So, purchasing health insurance in your 20s will enable you to protect your finances and health later. It also prevents your family and dependents from a lot of hassles during critical situations. 

So, research and compare multiple insurance options before selecting the right one for you.