Top 5 Reasons Young Indians Delay Health Insurance

Posted on: Sep 3, 2025 | 3 mins | Written by: HDFC ERGO Team

Top 5 Reasons Young Indians Delay Health Insurance

Are you delaying buying health insurance because you're young, fit, and healthy? Many young Indians share this sentiment, believing insurance isn’t a priority at present. However, unexpected medical emergencies can happen to anyone, and having a good health plan early can save you a lot of trouble later.

Healthcare costs in India are rising rapidly. According to government statistics, medical inflation in India has been around 14% in recent years. Yet, many young Indians continue to postpone purchasing health insurance.

A survey commissioned by HDFC ERGO General Insurance and conducted by NielsenIQ gathered insights from 2,200 respondents across 17 Tier 1 and Tier 2 cities in India. The report emphasises that out of 167 Gen Z, 44% do not invest in health insurance due to lack of awareness, whereas 43% millennials out of 393 surveyed believe that their existing coverage under corporate health insurance is sufficient and hence, do not purchase personal health insurance. Let’s take a closer look at what's holding them back and how the right health coverage can help.

1. Lack of Awareness Among Gen Z

The survey revealed that out of 167 Gen Z individuals surveyed, about 44% delay buying health insurance because they don’t know enough about its benefits and options. Many don’t fully understand how health insurance works or how easy it is to buy online. As a result, they often wait until a medical emergency happens, missing the chance to get protected early.

By providing clear information and easy-to-use online tools, insurers can help young people better understand health insurance and get covered sooner.

2. Reliance on Corporate Health Cover

Many millennials rely only on the health insurance provided by their employers. In fact, out of 393 respondents, 43% stated that they believe staying covered under a group plan is sufficient.

However, this can be risky, as corporate health plans often have limited coverage and end when you leave the job. This means you might be left without protection during job changes or career breaks. Having your own health insurance ensures you stay covered, no matter where you work.

3. Over-Reliance on Family and Agents

Gen Z and millennials continue to rely on family and agents when selecting and purchasing the right coverage. This is because:

• Family influence remains strong for Gen Z, with about 57% of the 167 respondents saying they rely on family members and friends for advice when selecting a health insurance plan.

For example, a young adult chooses the same insurer or plan their parents had for years, thinking it must be good. They may overlook newer plans that offer better coverage, lower premiums, or benefits more suited to their current needs.

Some people depend on their parents’ employer-provided insurance, unaware that it might not be sufficient or could be discontinued at any time.

Despite being tech-savvy, many Gen Z still prefer buying insurance offline. 67% Gen Z among 840 respondents require assistance and support, leading to a significantly higher preference in purchasing policies through offline channels.

4. Affordability Misconceptions

A major reason young Indians delay buying health insurance is that they believe it is not affordable. The survey also highlighted a growing demand for flexible payment options:

• Out of 300 respondents, approximately 30% in Hyderabad and 29% in Mumbai said that they are actively seeking staggered payment options, such as monthly or quarterly premiums. This indicates a growing demand for more manageable and budget-friendly health insurance plans.

• While many young buyers look for flexible premium payment options, the good news is that several insurers already offer them, making health insurance more accessible than it may seem.

5. Lack of Clarity on Wellness Benefits

Among 1,400 respondents, only about 36% of young Indians said that wellness benefits influence their decision to buy health insurance. This shows many are not clear about what these benefits include or how they can help.

Wellness benefits, such as free health check-ups, discounts on gym memberships and rewards for healthy habits, could encourage youngsters to buy health insurance sooner.

How Optima Secure Can Address These Gaps

HDFC ERGO’s Optima Secure is a smart health insurance plan designed to offer extensive coverage that is both affordable and flexible. It gives you 4X coverage at no extra premium, so you are better protected against rising medical costs.

Here’s how this plan helps address the common gaps that stop many young Indians from buying health insurance:

Common Gaps	How HDFC ERGO's My:Optima Secure Makes It Easy
Lack of Awareness Among Gen Z	Optima Secure makes buying health insurance simple and hassle-free with an easy digital process. You can quickly understand your options and buy coverage directly through the app.
Reliance on Corporate Health Cover	Optima Secure offers personal coverage of up to INR 2 crore that stays with you, even if you switch jobs or become self-employed.
Over-Reliance on Family and Agents	Instead of relying on family or agents, Optima Secure enables users to explore, compare, and buy plans online. The process is transparent so that buyers can make informed decisions.
Affordability Misconceptions	Optima Secure gives you 4X coverage at no extra cost with its special 'Restore Benefit.' You can also pay through easy EMIs, monthly, quarterly or half-yearly, making it more affordable for young buyers.
Lack of Clarity on Wellness Benefits	The Optima Wellbeing add-on gives you unlimited doctor visits, both online and in-person, at network clinics. You also get unlimited sessions with a psychiatrist or dietitian. These services are cashless but must be booked in advance through the app. You also get discounts on lab tests, scans, and health check-ups at network centres.

Conclusion

Health insurance is essential for everyone, especially now that health issues are increasing and medical costs are soaring. So, even if you are young and healthy, it is still wise to stay covered. Buying insurance early not only protects your health and finances but also comes with several additional benefits. You can get higher coverage for lower premiums, complete the waiting periods in advance and enjoy added perks like wellness programmes and no-claim bonuses. Start exploring your options today and choose a health insurance plan that's right for you.

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 as well as an 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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