Summary of this article
The data shows that nearly 6 in 10 purchase policies between the ages of 60 and 65. Super top-ups have doubled in just three years. Additionally, over 40 per cent now want Day-1 coverage for pre-existing conditions. Portability has also increased by more than 60 per cent as seniors seek better value and benefits.
On World Senior Citizens’ Day, new data shows how India’s elderly are approaching health insurance differently than before and the sharpest change is in ‘timing’. According to an analysis by Policybazaar, a majority of policies are now bought in the early sixties, when health risks start to rise, but premiums are still relatively manageable.
Nearly 57 per cent of purchases fall in the 60–65 age group, followed by a gradual uptick among those between 66 and 70.
The pandemic years have left a mark. Since then, adoption has grown at an annual rate of 50 to 60 per cent, and seniors are no longer simply renewing the same old cover. While two-thirds of policies last year were renewals, more than a third were fresh purchases. This shows that more seniors are aware and open to secure their healthcare, often nudged by families who don’t want to be caught off guard with medical bills.
How are the elderly keeping it affordable?
Money, unsurprisingly, drives most choices. Some seniors bring down premiums by opting for deductibles of two to three lakh rupees, while others layer their coverage with ‘Super Top-ups’. The uptake for the latter has doubled in popularity in the last three years, the data shows, rising from 17 per cent in 2022 to 31 per cent in 2024.
Around 12 per cent of seniors opted for co-pay feature at renewals, wherein the policyholder agrees to bear a part of the bills to keep the premiums low.
While switching insurers was not a common practice in the past, data shows that the market is maturing with wider awareness regarding the ‘portability of insurance policies’. Portability among seniors grew by nearly 61 per cent in just two years, from 18 per cent in FY23 to 29 per cent in FY25.
Today, around three in ten seniors choose to port policies in order to avoid steep premium hikes or to move towards better claims support.
Moreover, add-ons chosen by seniors reveal their changing priorities. Data notes that four in ten elderly policyholders opt for Day-1 coverage of PEDs (short form pre-existing diseases).
Where women buyers are increasingly opting for OPD riders, wellness check-ups and teleconsultations, Men lean more towards critical illness covers.
Post-pandemic, at-home treatment has also found more takers among those with mobility issues.
Coverage gaps persist
Seniors in metros such as Delhi, Bengaluru and Hyderabad are three times more likely to be insured than their counterparts in rural districts. They also buy larger covers wherein Rs 10 to 25 lakh is common in cities, while in smaller towns, uptake is still patchy and often tied to government schemes. Tier-2 centres are somewhere in between, with a steady upward curve.
“The shift is unmistakable,” says Siddharth Singhal, Business Head, Health Insurance, Policybazaar.com. “Seniors today are insuring earlier, with larger covers, and are far more conscious of value. Super top-ups have doubled in three years, and over 40 per cent want Day-1 coverage for pre-existing conditions. Portability is up more than 60 per cent. This is a clear sign of growing awareness and readiness to manage healthcare costs,” he states.
The data suggests that senior citizens are no longer passive buyers of health insurance rather they are actively weighing options. The challenge now, however, is to make sure this shift reaches beyond metros and tier-2 towns, into the places where coverage still lags behind.
