Summary of this article
65 per cent risk financial instability after a medical emergency
51 per cent invest early but delay buying health insurance
Many rely on parental cover despite growing investment portfolios
Many young adults are yet to make health insurance a part of their financial planning, even as they are showing increasing confidence in investing, according to a study by BajajCapital Insurance Broking. The report has found that a vast majority of Gen Z remains dependent on their parents for their insurance coverage, leaving them vulnerable to unforeseen medical expenses, even as they diligently take to wealth creation through mutual funds investments and systematic investment plans (SIPs).
Released on Insurance Awareness Day, June 28, 2026, the How Modern India Protects Its Future: India's Health Insurance Reality Report (2026) has found that 51 per cent of Gen Z respondents invest regularly in mutual funds and SIPs. However, the study has also noted that many delay purchasing an individual health insurance policy because they believe their existing family cover is sufficient.
Improved Investment Habits
Today’s Gen Z are more comfortable making independent financial decisions and investing for long-term goals over their predecessors. Most young earners regularly contribute to SIPs and mutual funds.
However, this financial discipline does not always translate into buying health insurance. The report said insurance is often viewed as a purchase for later life stages, such as the 30s or in marriage, rather than an immediate financial necessity.
The challenge is not lack of awareness. Instead, many young consumers understand the importance of health insurance, but delay taking action.
Research Does Not Always Lead To Purchase
The report said that Gen Zs actively seek information before making financial decisions. Around 29 per cent of respondents said they use financial apps to learn about health insurance, while 26 per cent rely on financial influencers for guidance.
Even so, many stop short of buying a policy. According to the report, one reason is that investments offer visible returns and regular portfolio updates, whereas the benefits of health insurance become evident only when a medical claim is made. This often reduces the urgency to purchase adequate cover.
Medical Costs Can Disrupt Financial Plans
The report has found that a striking 65 per cent of Gen Z could face financial instability if they encounter a major medical emergency. While 35 per cent believe they are adequately protected through parental or employer-sponsored health insurance, many others would have to depend on personal savings, seek financial support from family members, sell investments or borrow money to pay for treatment.
The report has recommended making health insurance easier to purchase through digital platforms, improving communication on adequate coverage, and encouraging people to review their insurance needs regularly. It said that increasing health insurance adoption among young consumers will depend on turning financial awareness into timely action before a medical emergency affects long-term financial stability.
