On the occasion of World Senior Citizens Day, a report by PolicyBazaar has highlighted a strong surge in senior citizen health insurance in India. The sector has experienced a 50–60% compound annual growth rate (CAGR) over the past four years, reflecting growing awareness and demand for healthcare protection among the elderly.
The report noted that the majority of policies are purchased between ages 60 and 65, accounting for approximately 57% of total purchases, followed by a steady increase in the 66–70 age group as health awareness and risks rise.
Around 65% of policies in the last financial year were renewals, demonstrating strong trust and continuity among existing policyholders. At the same time, more than one-third were new purchases, signaling that an increasing number of seniors and their families are actively seeking health coverage.
Claim trends reveal that heart conditions, joint replacements, cancer care, and dialysis are the leading reasons for claims. The average claim size ranges from Rs 1.8–2.5 lakh, with costs rising sharply beyond age 71. Notably, seven in ten seniors prefer cashless claim settlement, while the remainder opt for reimbursement.
The report also highlighted gender-specific preferences in add-on covers:
Senior women favor OPD coverage, wellness benefits such as annual health check-ups, and teleconsultations.
Senior men tend to select critical illness add-ons as a safety net against high-cost treatments.
Over the last three years, there has been growing interest in wellness riders, including annual health check-ups, teleconsultations, and fitness-linked rewards.
Geographic trends indicate that seniors in metros like Delhi, Hyderabad, and Bangalore have the highest insurance penetration, often choosing higher coverage limits of Rs 10–25 lakh with relevant add-ons. In contrast, Tier-3 towns in Bihar, Jharkhand, and the Northeast show the lowest penetration, with government schemes playing a key role in coverage. Mid-sized cities are demonstrating steady growth, gradually bridging the gap between rural and metro markets.
The findings underscore the rising awareness and adoption of senior health insurance in India, with policies increasingly tailored to meet the evolving medical and lifestyle needs of the elderly population.
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