Rising Demand for Affordable Health Insurance in FY24

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Rising Demand for Affordable Health Insurance in FY24

The demand for affordable health insurance has seen a substantial increase, with Policybazaar's analysis revealing that 70% of individuals are opting for cost-effective coverage in fiscal year 2024, signaling a heightened understanding of the need for financial preparedness in the face of medical emergencies, particularly among the senior population. Among those selecting affordable plans, the data shows that 60% are first-time insurance buyers, emphasizing a shift towards prioritizing healthcare protection among a broader demographic.

In the realm of affordable health insurance, the age group of 55+ years stands out as the largest segment of buyers, representing 34% of the total, closely followed by those aged between 41-55 accounting for 29%. While seniors traditionally favored plans with co-payments to keep premiums low, recent findings suggest a positive change in preferences, with 25% now opting for plans with zero co-pay, showcasing a shift towards greater flexibility in selecting insurance options tailored to individual financial circumstances and healthcare requirements.

Policybazaar's report highlights how many plans now offer the elimination of co-pay or the option to reduce it to 0% by paying an additional premium, a departure from the previous norm where co-payment was mandatory for those entering plans after the age of 60. Additionally, 60% of affordable health insurance buyers choose at least one rider when purchasing a plan, with consumable riders covering expenses like room rent and doctor visits proving to be the most popular choice among over 65% of customers, followed by riders offering Day 1 coverage for common ailments such as diabetes and heart disease selected by 33% of customers. This trend underscores a growing recognition of the potential financial implications associated with even common health issues.