When the Insurance Regulatory and Development Body of India (Irdai) eliminated the age restriction of 65 years for individuals purchasing health insurance policies last year, it was a big reform to make space for senior citizens. For years, senior health insurance in India has been a niche (and expensive) segment, often overlooked by insurers and policyholders alike because of the heavy cost it bears.
However, things are changing. A recent report by PolicyBazaar.com, an online insurance marketplace, notes that the adoption of health insurance for senior citizens has seen around 60 per cent growth in the financial year (FY) 2025. With rising medical costs and some recent favourable regulatory reforms, more seniors and their families are now realising the importance of comprehensive health coverage.
60% Rise in Adoption Among Seniors
In just about three years, the adoption trend of health insurance among the elderly has seen massive growth.
FY-23: 35%
FY-24: 48%
FY-25: 60%
In FY 2023, the growth rate was lying at 35 per cent, gradually rising to 48 per cent in FY24 and then seeing a sudden spike to 60 per cent in FY25. The major driving force behind this surge is a series of positive changes introduced by Irdai.
“This growth trajectory is largely attributed to positive regulatory reforms introduced by Irdai. These include no age capping, PED waiting period reduction, and cashless for all,” the report notes.
Who’s Paying The Premiums?
The data notes that the financial responsibility of health insurance premiums for the elderly is mostly shouldered by their children. Around 73 per cent of premiums for senior policyholders are paid by their children, showing a strong familial commitment to elderly healthcare.
On the other hand, 27 per cent of seniors independently manage their premiums, which shows a segment that can comfortably cover their own healthcare needs.
Out of those with NRI children, 11 per cent receive premium support from their children living abroad, which helps them manage healthcare for their senior parents from overseas. Many insurance providers now provide ‘specialised concierge services’ that enable such NRI children to manage policies and healthcare needs remotely.
High-Coverage Plans: The New Norm
The report finds that elderly policy buyers are increasingly opting for high-coverage plans wherein 65 per cent of them go for sum insured amounts of Rs 10 lakh or above.
This shows a growing awareness among seniors amid rising costs of medical treatments, particularly for major surgeries such as hip or knee replacements and cardiac surgeries.
To further ensure that they get comprehensive coverage, the elderly are also opting for add-ons in their policies. The major health riders being opted for are;
Pre-Existing Disease (PED) waiver: 85 per cent of senior citizens are opting for PED waiver riders to ensure immediate coverage for pre-existing conditions.
Outpatient Department (OPD) cover: 65 per cent of seniors include OPD cover to manage ongoing consultations, diagnostics, and medications.
Consumables add-on: This is one of the most preferred riders being opted by seniors. Around 85 to 90 per cent of them select consumables coverage to reduce costs on medical supplies like bandages, catheters, and surgical gloves.
How To Ensure Cost-effective Coverage On Senior Policies?
Affordability is a critical factor to consider when it comes to choosing a health plan for seniors. Insurers extend a variety of tailored policies that can make coverage more accessible for the elderly. These are;
Cumulative Bonuses: This facility comes in the form of a ‘bonus’ that automatically increases the Sum Insured every year, regardless of any claims made. This bonus can increase the policy's total sum insured by up to 7x, 10x, or even more over a defined period, the report states.
Migration to New-age Plans: Switching to better plans within the same insurer can offer you more affordable coverage without losing benefits.
Opting for Deductibles: Choosing a deductible option helps reduce premiums by covering a portion of expenses yourself.
Limited Network Coverage: Opting for a limited network of hospitals can help save up to 15 per cent on premiums, without compromising quality care but with a lower cost.
As medical inflation continues to rise, the cost burden would be most detrimental for the senior policyholders who already face high premiums.
The trends noted in this report show a growing awareness and willingness among both seniors and their families who filing to invest in comprehensive health covers. This growth is further supported by positive regulatory reforms and customised coverage plans (such as with add-ons), which are making health insurance more accessible.
