India’s senior citizen health insurance landscape is transforming rapidly, driven by rising medical costs and growing awareness. Policybazaar data shows that seniors now hold 18% of all health insurance policies, reflecting an increasing focus on long-term healthcare security.
A key shift is in coverage preferences, with 73% of seniors opting for plans above ₹10 lakh, largely due to costly treatments like joint replacements and cardiac procedures. To address affordability, insurers offer cumulative bonus features that expand coverage over time without major premium hikes.
Regulatory reforms by IRDAI have further boosted accessibility, eliminating age caps, reducing waiting periods for pre-existing conditions, and enabling universal cashless treatment. These changes encourage more elderly individuals to secure health insurance.
Premium payment trends are also evolving—while 73% of policies are still funded by children, 27% of seniors now pay independently, signaling a shift toward financial autonomy. Additionally, 11% of seniors with children abroad receive direct financial support.
Beyond hospitalization, demand for add-ons is rising. Around 85-90% choose consumables coverage, 61% opt for pre-existing disease waivers, and 30-35% include OPD coverage. Cost-saving strategies like deductible-based plans and hospital network-specific policies are also gaining traction.
As these trends shape the industry, the focus is shifting from basic coverage to optimizing policies for long-term financial and healthcare security.
