Key Facts:
The Indian healthcare system is one of the largest in the world, with the number of people it concerns: nearly 1.3 billion potential beneficiaries.
One hundred million Indian households (500 million people) benefit from health coverage.
Prime Highlights:
Senior citizens in India saw a 60% rise in health insurance uptake during FY25, indicating a growing awareness of healthcare needs.
Senior citizens now account for 28% of all health insurance policies purchased, highlighting a shift towards prioritizing health coverage.
Key Background:
The health insurance sector for senior citizens in India has witnessed a significant transformation, with a 60% increase in uptake during FY25. This surge reflects a heightened awareness among elderly citizens regarding the importance of securing comprehensive healthcare coverage. As of FY25, senior citizens account for 28% of all health insurance policies purchased, highlighting a shift in priorities towards healthcare.
Several key factors contribute to this growth, including favorable regulatory changes introduced by the Insurance Regulatory and Development Authority of India (IRDAI). These reforms, such as the removal of age caps and the reduction of waiting periods for pre-existing conditions, have made health insurance more accessible to the elderly. Notably, 27% of senior citizens now independently manage their health insurance premiums, reflecting their growing financial autonomy. In contrast, 73% still rely on their children to cover premiums, with 11% benefiting from support provided by children living abroad. This demonstrates the importance of familial support in elderly healthcare in India.
The rising cost of medical treatments, such as critical surgeries and cardiac procedures, has further driven the demand for higher coverage. As a result, 65% of senior citizens are opting for policies with a sum insured (SI) of ₹10 lakh or more. Additionally, seniors are increasingly choosing add-on benefits, with 85% opting for Pre-Existing Disease (PED) waiver riders and 65% including Outpatient Department (OPD) cover in their plans. The consumables add-on, which 90% of seniors select, helps offset the costs of medical supplies.
In response to the affordability challenge, the insurance industry has introduced tailored solutions. Cumulative bonus riders, new-age plans, and strategies like opting for deductibles or limited hospital networks are being embraced by seniors to reduce premium costs while still accessing comprehensive healthcare.
