A latest survey of Fintech firm Policy Bazaar highlights a significant disconnect between consumers’ intentions, awareness and real ownership of health insurance in India. While 28.3% of the 3,955 respondents identified health insurance as a “Must-Eve” product for their financial plan, only 18.7% owned health insurance policy.
This ownership difference exists despite high awareness levels; About 83% of respondents claim that they understand health insurance as a financial product and recognize its importance. Additionally, more than one -third of respondents have considered purchasing health insurance, and about 23% had policies in the past, but they have allowed them to miss them.
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While ranking the required financial products, health insurance was placed in the top five, but other investment options were quite stuck. Gold led preferences at 54%, followed by insurance -related savings schemes such as life insurance (43%), fixed and recurring deposits (42%), and real estate (40%). This priority suggests that health insurance is considered less valuable than other financial products, possibly due to concerns about cost and efficiency.
Covered coverage amounts selected by policyholders are clear. The survey found that 48% health insurance owners have coverage 5 lakhs or less. Coverage rates in Tier 2 and Tier 3 cities were particularly low, where policies were worth up 5 lakhs were the most common. The second most popular coverage range among all respondents was among the range 5-10 lakhs.
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In the absence of health insurance, the respondents reported various alternative strategies to handle medical emergency conditions. About 21% of people without health insurance said that they would rely on investing in mutual funds, stocks or similar vehicles to cover health costs. About 16% will resort to borrowing from friends and family or taking personal loans. Mostly, 19% of the respondents admitted that they have no plans for medical emergency conditions.
