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Affordable health insurance is experiencing a surge in demand, with a whopping 70 per cent of individuals opting for cost-effective coverage in fiscal year 2024, showed data analysed by Policybazaar. This trend highlights a growing awareness of the importance of financial preparedness for medical emergencies, particularly among senior citizens.
Out of the total customers opting for affordable plans, 60 per cent are first time insurance buyers.
The age group above 55+ years comprises the largest percentage of affordable health insurance buyers, accounting for 34 per cent of the total; this is closely followed by customers in the age group of 41-55 at 29 per cent.
Traditionally, senior citizens often opted for plans with co-payments to keep premiums low. However, the report indicates a positive change. At least 25% are now opting for plans with zero co-pay, a benefit made possible by the increasing availability of plans that either eliminate co-pay entirely or allow for its reduction with a slightly higher premium. This flexibility empowers seniors to choose a plan that best suits their financial situation and healthcare needs.
"Co-payment, traditionally chosen by senior citizens to keep premiums low, was previously mandatory for those entering plans after the age of 60. Currently, many plans either eliminate co-pay entirely or provide the option to reduce it to 0 per cent by paying an extra premium," noted the report.
At least 60 per cent of the affordable health insurance buyers opt for at least one rider while purchasing any plan. Of these, consumable riders, which cover expenses such as room rent charges and doctor visits, are the most popular choice (over 65%), are opted by over 65% customers, followed by riders offering Day 1 coverage for common ailments like diabetes and heart disease (33%). This trend reflects a growing awareness of the potential financial burden associated with even common health issues.
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Further, room rent modification riders and cumulative bonus booster riders are preferred by 17% and 15% customers, respectively.
Indians are also realizing that corporate health insurance alone is not sufficient. At least 30 per cent of customers who already have employer-sponsored medical insurance are opting for a retail health insurance policy with deductibles to make their plan affordable and customizable as per their needs.
Policyholders typically opt for a minimum sum insured of Rs 5 lakh, with popular choices ranging between Rs 5 to 7 lakh.
At least 15 per cent of customers also opted for ‘Preferred Hospital Network’ option, that allows for up to 15% discount on the premium.
The most popular health plans that were bought on Policybazaar in FY24 were:
Reliance General Insurance, Niva Bupta Health Insurance, Star Health Insurance and Aditya Birla Health Insurance.
