Gen Z's guide to health insurance: Here is everything you need to know and why
Updated On: 07 July, 2024 02:56 PM IST | Mumbai | Aakanksha Ahire
Medical inflation stands at 14 per cent in India making access to quality treatment challenging. Those individuals getting treated are often left with a massive financial liability. For this reason, experts suggest Gen Z get insured at the earliest. Here is everything you need to know
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The Indian healthcare market, which was valued at $116 billion in 2016, is projected to reach $638 billion by 2025. Photo Courtesy: iStock
While chronic illnesses like diabetes, hypertension, and obesity are on the rise among the young, the awareness of health insurance in Gen Z is considerably low. Additionally, the skyrocketing costs of healthcare services make health insurance education even more crucial than ever.
Experts believe that Gen Z must get themselves insured as early as possible for the best support. However, determining which health insurance suits best for you and the process of getting yourself insured can be easily overwhelming.
Mid-day.com roped in experts from the health insurance sector to seek key insights on the same.
Syed Meraj Naqvi, CEO and principal officer, Riskbirbal Insurance Brokers tells Mid-day readers, “Imagine this - you are young and healthy, enjoying your life. Suddenly, an unexpected illness strikes. Hospital bills pile up, medications become a burden, and your savings dwindle. In such situations, health insurance acts as a protective shield. It helps cover significant portions of medical expenses, including hospitalisation costs, surgeries, and often even prescription drugs.”
Need for health insurance from a young age
Shilpa Arora, co-founder and chief operating officer, Insurance Samadhan highlights, “Medical inflation stands at 14 per cent in India. The cost of treatment has increased significantly. Unfortunately, this is making quality and timely treatment beyond the access of many, while the limited number of individuals getting treated are often left with a massive financial liability. For instance, even minor surgery can cost up to one lakh rupees. Additionally, in India, the ‘Out-of-Pocket Expenditure’ (the direct payment of money by an individual for healthcare services or goods) stands at 47.1 per cent, which is relatively higher than most countries. These aspects make it imperative to purchase a health insurance policy.”
The earlier you enroll in a health insurance plan, the better. Arora advises starting as early as possible or as soon as one turns 18. “When it comes to health insurance or insurance in general, those who purchase an insurance policy at a young age tend to benefit in more than one way. For instance, most insurance companies consider young applicants healthier than older adults due to their lower vulnerability to age-induced complications or chronic illnesses, making them lower liability. As a result, insurance providers offer comprehensive coverage at a lower premium amount than what an older adult would typically pay.”
“Similarly,” she adds, “younger adults are subject to less scrutiny when buying a policy. For instance, some insurers may not require a pre-policy medical check-up if the applicant is very young. However, this clause may differ from company to company. Some health insurance products also offer a cumulative bonus for every non-claim year. Such a bonus often helps increase the sum insured without any additional cost. Since younger individuals are deemed less likely to raise a claim during the policy year, they may become eligible for a claim bonus.”
Nikhil Apte, chief product officer, Royal Sundaram General Insurance Co. Ltd tells Mid-day.com, “Typically, up to the age of 25, a child is covered under family floaters; after 26 years onward, the child is covered as an independent and not in the family floater. The real answer to getting covered in health insurance is today, because the hard fact of life is that everybody at some stage will require hospitalisation, so it is important to start today and get the maximum possible insurance.”
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