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What Gen Z and Millennials Expect from Health Insurance in 2025

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Health issues are increasing rapidly among people of all ages, prompting more young people to invest in health insurance. A custom survey commissioned by HDFC ERGO General Insurance Company and conducted by NielsenIQ (NIQ), among 1,400 respondents, it was revealed that 61% of Gen Z and millennials now consider health insurance an essential part of their overall well-being, as well as their financial planning. However, they are not settling for just any policy but looking for one that best matches their healthcare needs and lifestyle.

How Gen Z and Millennials View Health Insurance

HDFC ERGO General Insurance recently shared more details from a survey about what Gen Z and millennials want from health insurance.

The survey revealed:

• Out of 167 Gen Z, 44% state a lack of awareness as a barrier to purchasing personal health insurance, whereas 43% millennials out of 393 surveyed rely on corporate health insurance

• Out of 505 Gen Z, 55% rely on family members regarding health insurance decisions

• Out of 840 respondents, 60% millennials and Gen Z purchase policies through offline mediums owing to trust in agents to help at the time of claim

• Out of 1400 respondents, 36% of millennials and Gen Z buy health insurance due to wellness benefits, while for 37%, the increased cost of medical procedures is the main trigger

Here’s how Gen Z and millennials relate to health insurance:

Gen Z

1. Just getting started:

Most are either still studying or in their first jobs, so health insurance is new to them. They may not trust advertisements easily and prefer to ask friends or family, or check reviews and social media before making a decision.

2. Comfortable with tech:

They are happy to explore options on apps and websites, but still want guidance from someone they trust.

3. Looking for flexibility:

One-size-fits-all doesn’t work for Gen Z. They choose plans that fit their lifestyle and health needs, even if it costs a little more. Mental health cover, online doctor consultations, fitness rewards and flexible features are high on their list.

Millennials

1. More familiar with insurance:

Many already have health insurance, often through work, so they understand how it works. Still, they take their time, compare plans and look for good value, especially when covering their family.

2. Digital-first, but support is important:

They are comfortable using online platforms to compare and buy plans, but expect reliable and prompt customer service when it matters, particularly during claims.

3. Looking for life-stage benefits:

They prefer plans that match their current life stage, such as maternity coverage, child health benefits, or long-term care. Wellness features, such as regular check-ups and rewards, are a bonus. Also, customisation is key for them.

Key Survey Insights on Young Buyers

Based on a survey conducted on both Gen Z and millennials, the following insurance buying trends were observed:

• Out of 393 millennials, 61% compare policies on aggregator websites: Most young buyers don’t just buy any policy. They shortlist a few plans and compare their inclusions, exclusions, benefits, premiums and more before selecting a suitable one.

• Out of 167 Gen Z, 44% avoid health insurance due to lack of awareness: Terms like ‘deductible’ or ‘co-pay’ may still confuse many young buyers. It is imperative to propel the insurance awareness to bring more people under the ambit of insurance

• Out of 840 respondents, 60% policyholders still trust agents for final decisions: Even though Gen Z is good with technology, 67% said they need help when buying insurance. In fact, 60% of all respondents, including both Gen Z and millennials, prefer to buy insurance offline because they trust agents more.

Why INR 1 Crore Health Insurance Makes Sense for Young Indians

Healthcare costs are rising rapidly, and even a minor medical procedure can force you to dip into your savings. If you are diagnosed with a life-threatening condition or need to undergo a major treatment, the expenses can run into several lakhs. This can put emotional and financial pressure on you and your loved ones. That’s why it is wise to invest in an INR 1 crore health insurance plan like HDFC ERGO’s Koti Suraksha, especially while you are still young. Even if you don’t need that much coverage right now, it gives you long-term security, protecting your health and finances, and giving you peace of mind today and whenever a medical emergency arises.

The following are some reasons why you should choose an INR 1 crore health plan, like HDFC ERGO’s Koti Suraksha, even if you are young and healthy:

1. Medical inflation:

Due to advancements in technology and rising medical costs, healthcare expenses are increasing rapidly. You now have to pay significantly more for the same medical procedures. Hence, having high health insurance coverage is important.

2. Affordable premiums:

Health insurance premiums increase as you age. So, if you invest in a plan when you are young and healthy, the premiums will be more affordable. This means you can secure your health at a lower cost.

3. Better coverage:

An INR 1 crore health plan offers enhanced coverage and benefits, including broader pre- and post-hospitalisation coverage, unlimited daycare procedures, home healthcare, organ donor expenses, free preventive health check-ups, wellness benefits, and more. Therefore, investing in one makes sense, especially if you want to protect both your health and finances.

4. Right coverage for your family:

The coverage is large enough to take care of you and your loved ones without worry. It helps you access the best healthcare and ensures better health outcomes.

5. Eases financial worries:

If you have other financial commitments, such as home or car EMIs, there may not be much left for unexpected expenses. In case of hospitalisation, your finances can take a hit if you don’t have enough health insurance. An INR 1 crore health plan gives you the confidence to handle medical emergencies without disrupting your financial goals.

6. Family history of critical illnesses:

Treating a critical illness can quickly deplete your savings. So, if there is a family history of conditions like heart disease, kidney problems, or cancer, having an INR 1 crore health insurance plan can ensure that you and your loved ones get quality treatment without financial strain.

Rising Medical Costs

Medical expenses are increasing every year, making it harder to keep up. From doctor consultations to hospital stays, everything is becoming more expensive due to inflation. That’s why many young people are starting to plan early. In fact, the survey revealed that 37% of Gen Z and millennials are now opting for higher health insurance coverage to stay prepared for the future. Therefore, getting a plan like an INR 1 crore health cover early on means you can lock in lower premiums and stay protected as healthcare costs continue to rise.

Demand for Flexibility and Digital Services

These days, youngsters want health insurance that’s easy to use and flexible. They expect quick help from their insurance providers and prefer to manage premium payments and other services online.

• Quick service:

Nearly 48% of Gen Z and millennials expect quick and hassle-free support when they need help. They don’t like waiting long for approvals or claims.

• Digital ecosystem:

Policyholders want to manage their policies, file claims, and receive health advice online to save time and effort.

• Agent trust:

Even with digital tools, 60% of Gen Z and millennials still rely on their agent’s advice to make confident decisions about their health insurance.

What Insurers Can Do to Adapt

Here’s what insurers can do to adapt:

• Offer hyper-personalised health plans that match policyholders’ age, health condition, family size and lifestyle.

• Design plans that are easy to understand, using simple language and clear benefits, so policyholders know exactly what is covered.

• Provide flexible options, such as top-up covers, add-ons, and the ability to increase or decrease the sum insured as needs change.

• Use digital tools to make buying, managing and claiming on policy fast and hassle-free, anytime and anywhere.

• Must ensure quick claim settlements with minimal paperwork, so policyholders don’t face delays during emergencies.

• Offer wellness programnes and preventive health check-ups for policyholders.

• Maintain strong support through trusted agents who can explain plans clearly and help people make informed decisions.

Final Thoughts

With rising medical costs and growing health needs, having the right insurance plan is more important. With an INR 1 crore cover, you can access quality healthcare, financial security and peace of mind. If you are looking for a plan that is flexible, easy to understand, and ideal for supporting the healthcare needs of you and your loved ones, HDFC ERGO’s My:Health Koti Suraksha is a smart choice. The policy offers a high sum insured of up to INR 1 crore, wide coverage and several benefits. Therefore, investing in it can provide you with long-term protection, peace of mind, and the confidence to handle any medical emergency without financial stress.

Disclaimer: For more details on the risk factors, terms and conditions, please read the sales brochure/prospectus before concluding the sale. The information, statements and opinions provided in this page are based on a custom survey conducted by NielsenIQ/NIQ and commissioned by HDFC ERGO General Insurance Company Ltd. HDFC ERGO General Insurance Company Ltd and NielsenIQ/NIQ do not advocate, endorse, represent, verify or arm any statements or opinions as contained herein, as their own in any manner or otherwise. NielsenIQ/NIQ’s role is limited to conducting the custom survey commissioned by HDFC ERGO General Insurance Company Ltd. and the reference to NielsenIQ/NIQ in this booklet/report is voluntary by HDFC ERGO General Insurance Company Ltd. and NielsenIQ/NIQ is not advocating any representation or endorsement on its behalf. NielsenIQ/NIQ as well as HDFC ERGO General Insurance Company Ltd hereby disclaim any and all liability, damages or loss incurred by any party or person with respect to any and all contents on this booklet/report. The survey details are subject to analysis done with the selected and limited audience and subject to inherent sample bias and may/may not represent views of the entire population. Insurance policies can be procured based on the terms and conditions and independent evaluation.
NielsenIQ (NIQ) is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behaviour and revealing new pathways to growth.

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