Quora Answer: Is There an Optimal Age & Coverage When Purchasing Health Insurance?

The following is my answer to a Quora question: “Given that health insurance gets more expensive the older you get and the higher the coverage amount, is there an optimal age and amount in which to purchase coverage?”

If your concern is price, then there is no optimal age since health insurance is renewed annually, and the premium follows the age band.  In Singapore, however, long term policy holders are rewarded with discounts on their premium, but the savings are marginal.  The only real difference in price would be if there is loading.  Loading is a percentage increase in your premium due to increased risk due to poor health, obesity or hereditary factors.

The reason why people should get health insurance as early as possible is to get coverage as soon as possible, and before there is a diagnosis of anything that would become a preexisting condition.  In many places in the world, a preexisting condition is either exempted from coverage, or there is a reduced payout.  That means treatment can become very expensive.