More and more Indians are starting young and purchasing Health Insurance for their entire family
It is a widely known fact that we Indians have close attachment to our families. We have close bonds with our loved ones and don't hesitate to invest for their well-being. Now, a new study has revealed that more and more Indians are buying health insurance for their entire family. Not only this trend has witnessed a sharp increase but also the buyers (average age 32 years) are starting young. The findings were published in the Max Bupa Health Insurance Pulse 2015.
This first of its kind multi city study was conducted to understand how health insurance is perceived, bought and utilized in India. The study conducted among 1500 plus respondents in leading metros like Delhi, Mumbai, Chennai and tier 1 and 2 centres like Hyderabad, Punjab and Rajasthan states that 6 out of 10 Indians prefer family health cover as against 4 out of 10 for individual cover.
40 per cent people buy Health Insurance due to rising healthcare costs and over 30 per cent feel that their employer provided health cover is insufficient. Further, comprehensive coverage for multiple diseases and protection against lifestyle and critical illnesses are the key reasons for purchase, affordability is the least important. 32 per cent of the respondents admitted they have not read their policy documents; trust on agent cited as the key reason for not reading terms and conditions.
Among the metros, Mumbai demonstrates better understanding of Health Insurance with 66 per cent Mumbaikars aware of the distinction between life and Health Insurance, as against 36 per cent Delhiites and 39 per cent people in Chennai. Doctor's advice triggers Health Insurance purchase for 46 per cent respondents in metros as well as tier 1 and 2 cities.
"Health Insurance consumers are evolving from being price conscious to being value conscious with majority of them preferring family health plans over individual coverage and opting for a sum insured of is Rs 6-7 lakh. Also the average age of Health Insurance owners has reduced to 32 years across metros and non-metros. Most of the owners still feel inadequately protected as cost of hospitalization and incidence of illnesses across age groups is on the rise," said Anika Agarwal, Head, Marketing, Max Bupa.
In terms of gender related findings, an increasing number of women are becoming the sole decision makers in buying Health Insurance (55 per cent), however almost two third of them are not aware that new born and in-laws can be covered under Health Insurance.