Wellness With Coverage: Here’s How Gen Z, Millennials Are Rethinking Health Insurance

For most policyholders, health insurance meant only one thing, protection against a medical expense. But for the younger generation now, it includes a lot more, including wellness benefits, according to a recent survey by HDFC ERGO General Insurance and NielsenIQ.

Findings reveal that nearly 36 per cent of the 2,200 millennials and Gen Z buyers surveyed across 17 Indian cities are choosing health insurance not just for emergencies, but for the added wellness benefits, such as annual health check-ups, preventive screenings, and fitness-linked perks.

Insurers are also paying close attention to this shift in preference, as the younger age group now constitutes the bulk of India’s population. Their choices are beginning to reshape how the insurance industry thinks about products and service delivery.

A huge 61 per cent of those surveyed said they are actively looking beyond traditional coverage.

What Do Young Consumers Really Want?

About 1,400 respondents said health coverage was the foremost priority in selecting an insurance policy. About 37 per cent cited rising medical costs as the top concern, which prompted many to get insured as a financial safeguard.

Respondents in Kolkata (51 per cent), Bengaluru (49 per cent), Mumbai (49 per cent), and Chennai (47 per cent), showed a growing interest in having pre-hospitalisation expenses, such as consultations, diagnostic tests, scans, covered under standard health plans. For many, these out-of-pocket costs add up quickly, and the expectation is that insurance should catch them too.

The expectation of insurance services has risen too. About 48 per cent of respondents want quicker, more responsive customer support, while 47 per cent said they are looking for educational resources to better understand their coverage and benefits. It is not that they don't want to buy insurance, it is that they don’t want to be left confused once they do.

Other than this, insurance buyers are also keen on having flexible premium payment options. Around 30 per cent of respondents in Hyderabad and 29 per cent in Mumbai want premiums they can pay over time, indicating affordability as a key concern among buyers, even the ones who are digitally savvy.

Despite being digital natives, 67 per cent of Gen Z respondents still said they needed help when purchasing a policy, and 60 per cent actually bought theirs offline, often through agents they trust.

There is also a split in how they gather information, too. Gen Z leans heavily on direct input from insurance companies or through recommendations from friends and family. Millennials, on the other hand, are more likely to turn to aggregator websites and compare policy features before deciding. Different approaches, but both looking for clarity and control.

What’s Holding Some People Back?

For all the growing interest, barriers remain. Among Gen Z respondents who have not bought health insurance, 44 per cent said it is simply because they are not aware of it.

And while millennials are more familiar with the concept, 43 per cent of those without personal insurance believe their employer's group cover is good enough. Whether that’s due to lack of awareness about the limitations of group plans or simply a matter of convenience is unclear, but it does show that personal ownership of insurance is still not understood clearly.

The Bottom Line

The report reveals a shift in the mindset of people when it comes to buying or customising insurance policies. ‘Wellness Benefits’ are one part of that. But so are clear terms, responsive service, a smoother digital experience, and plans that align with costs beyond hospitalisation.