Senior citizen health insurance in India has seen 50-60% annual growth over the past four years, with most policies bought between ages 60-65. Renewals comprised 65% of policies, indicating customer trust, while new purchases also increased.
On the occasion of World Senior Citizens Day, a report by PolicyBazaar has highlighted that senior citizen health insurance in India has witnessed strong growth in recent years, recording a 50-60 per cent compound annual growth rate (CAGR) over the last four years. The report noted that the majority of health insurance policies for senior citizens are purchased in the 60-65 age bracket.
It stated “Approximately 6 in 10 health insurance policies are purchased between ages 60-65, with this bracket alone accounting for approx. 57 per cent of all followed by a steady rise in the 66-70 segment as awareness and health risks increase”.
The data further revealed that around 65 per cent of health insurance policies for senior citizens were renewals in the last financial year, reflecting strong trust and continuity among existing policyholders.
At the same time, more than one-third of the policies were new purchases, indicating that a rising number of seniors and their families are actively opting for health cover.
The report also shed light on the claim patterns of senior citizens. Heart conditions, joint replacements, cancer care, and dialysis emerged as the leading reasons behind claims.
The average claim size for senior citizens was reported in the range of Rs 1.8-2.5 lakh, with costs rising sharply after the age of 71. Notably, seven in ten seniors preferred cashless claim settlement, while three still opted for reimbursement.
The report further highlighted gender-specific choices in add-on covers. Senior women showed a preference for OPD coverage, wellness benefits such as annual health check-ups, and teleconsultations. Men, however, leaned towards critical illness add-ons, treating them as a safety net against high-cost treatments.
Over the last three years, there has also been a growing interest in wellness riders, with more seniors opting for annual health check-ups, teleconsultations, and fitness-linked rewards.
The report data also pointed out that seniors in metros like Delhi, Hyderabad & Bangalore have highest insurance penetration, often opting for higher covers of Rs 10-25 lakh with relevant add-ons.
Smaller towns like Tier-3 towns in Bihar, Jharkhand & Northeast have lowest penetration. Coverage is typically picking up via government schemes.
Mid-sized cities are showing steady growth, bridging the gap between rural and metro markets.
The findings highlight the rising awareness and adoption of health insurance among India’s elderly, with policies increasingly being tailored to meet their evolving medical and lifestyle needs.