Despite Rising Costs, Young Indians Still Choose Health Insurance as a Priority

Health insurance may once have been viewed as a luxury by younger generations, but that’s no longer the case. In today's India, young adults are increasingly recognising the necessity of being insured. Rising medical inflation, changing disease patterns, and increased awareness are prompting millennials and Gen Z to invest in health insurance, even as living expenses continue to rise. But what drives this change, and why are they prioritising insurance over other financial commitments? Let’s find out.

Why are Medical Costs Rising in India?

Medical inflation in India, which hovers around 14%, has become a growing concern. This sharp rise is due to several reasons, such as:

• Increased cost of advanced medical technology
• Higher consultation and hospitalisation charges
• Costly pharmaceuticals and diagnostic tests
• Greater demand for private healthcare services

Young Indians are aware of these trends and want to avoid getting caught off guard by unforeseen health issues.

What’s Changing in the Mindset of Young Indians?

Gone are the days when insurance was a decision primarily focused on retirement. Today's youth are:

• Proactive: Many young professionals now recognise that starting early provides them with access to lower premiums and more favourable policy terms.
• Digitally informed: With easy access to online resources and mobile apps, they research and buy policies themselves.
• Health conscious: There’s a growing awareness of lifestyle diseases and mental health, which was rare a decade ago.

Also, the COVID-19 pandemic was a game-changer. It exposed the fragility of public healthcare and highlighted the importance of private insurance. Even those who earlier delayed getting covered began buying health plans.

Some of the key lessons learned were:

• Emergency medical bills can wipe out years of savings.
• Employer-provided insurance may not always be sufficient.
• A personal or family health insurance plan provides greater financial support during medical emergencies and peace of mind.

Why Choosing Health Insurance is a Smart Decision

Young people often struggle to budget for non-immediate expenses. But health insurance is not just about risk coverage; it is also a smart financial move. Here's why:

• Tax savings: Premiums paid for health insurance qualify for deductions under Section 80D of the Income Tax Act.
• Cumulative bonus: Many plans offer increased coverage for claim-free years.
• Cashless treatment: Ties with hospitals allow direct claim settlement, easing financial pressure on the policyholder.
• Wellness benefits: Some plans include preventive health check-ups and mental health support.

By buying early, youngsters secure lower premiums while maintaining broader coverage.

Health Risks Affecting Young Adults

The modern lifestyle comes with its own set of challenges, such as:

• Stress: Urban jobs, long hours, and lack of work-life balance
• Pollution: Air quality in metros is worsening, increasing respiratory issues
• Poor diet and sedentary living: Fast food and desk jobs contribute to obesity, diabetes and hypertension

These factors are prompting many to adopt healthier habits and also seek financial protection through insurance.

Coverage for the Entire Family

As many young professionals start families or support ageing parents, their needs evolve. They seek plans that offer:

• Multi-member coverage
• Maternity and newborn benefits
• OPD and dental benefits

This is where a family health insurance plan becomes valuable. It simplifies policy management and is often more cost-effective than individual plans.

Digital Adoption is a Key Enabler

Today, getting insured is easier than ever. Here is how:

• Instant policy comparisons online
• Paperless KYC and digital signatures
• Chatbots for 24x7 support
• App-based claims tracking

This digital ease appeals to young Indians who value convenience and quick service.

The Long-Term Benefits of Early Insurance

Starting early pays off in more ways than one, like:

• Lower premiums
• No-claim bonuses build faster
• Less likelihood of facing exclusions due to pre-existing conditions
• Easier financial planning as responsibilities grow

Investing in a health insurance plan early in life is not just about risk cover. It empowers you financially for the years ahead.

Challenges Young Indians Face When Choosing Insurance

Despite growing interest, some hurdles remain:

• Information overload: Numerous plans with varying terms can confuse first-time buyers.
• Mistrust: Not all insurers have transparent claim processes.
• Affordability: While cheaper than later in life, premiums still pinch in early careers.

To counter these, youngsters must:

• Read policy documents thoroughly
• Choose IRDAI-registered insurers
• Opt for plans with high claim settlement ratios and hospital networks

Conclusion

Even in a time of rising living costs, health insurance remains a top priority for young Indians. This shift signals a maturing financial outlook among young people, one that views insurance not as an expense but as a strategic investment.

With digital platforms simplifying the purchase process, better awareness of health risks, and long-term savings benefits, getting insured early is a priority.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.