A report by Niva Bupa Health Insurance highlights that health insurance ownership in India correlates more strongly with financial maturity than income levels alone. Policyholders demonstrate better financial discipline, including stronger portfolio diversification, liability management, and long-term planning—positioning insurance as an integral component of financial security rather than a standalone product.
Niva Bupa Health Insurance unveiled the Young India Health Insurance Report – India’s Health Protection Score at its annual flagship event, Better Together, a premier gathering of leaders from across its partner and distribution ecosystem.
The Young India report is based on a survey which was conducted among 2,400+ respondents across 35+ urban and rural centres, spanning Tier 1, 2, and 3 towns as well as villages. It highlights a significant gap between awareness and actual ownership of health insurance among younger consumers.
While 51% of young Indians rank health insurance among their top three financial priorities—indicating strong intent—only 14% currently own a personal policy, revealing a clear gap between awareness and action.
A key highlight of the report is the introduction of Health Protection Score (HPS)—a first-of-its-kind composite metric designed to assess how prepared young Indians are to handle medical emergencies.
The score brings together four critical dimensions: 1) Lifestyle discipline, 2)Family health history, 3) Self-assessment of health status & care, and 4) Financial adequacy—offering a comprehensive view of health readiness beyond just insurance ownership.
Health Protection Score reveals a vulnerable young India
The HPS findings present a compelling and somewhat counterintuitive picture of India’s
health preparedness landscape. Buoyed by an unverified sense of strong overall health, young India scores a low 4.54 on the Health Protection Score, signalling inadequate readiness to manage medical emergencies.
More notably, 76% of young Indians fall within the vulnerable zone, with 23% classified as very vulnerable and 53% as somewhat vulnerable. Alarmingly, only 24% are remain financially or medically prepared against unforeseen health event.
These findings underscore that the challenge extends beyond financial readiness to include gaps in preventive health behaviour and lifestyle discipline—closely reflecting evolving consumer attitudes,financial priorities, and risk perception.
Intent is high, but action remains delayed The research suggests that this intent-action gap is driven less by affordability and more by perception of good health. Many young consumers believe health insurance is a need for later in life,when the perceived risk of illness increases.
This behaviour mirrors broader financial patterns—young Indians are disciplined in managing day-to-day finances but tend to prioritise liquidity (26%) over long-term protection (8%).
Ownership signals financial maturity, not just income
The report highlights that health insurance ownership correlates more strongly with financial maturity than income levels alone. Policyholders demonstrate better financial discipline, including stronger portfolio diversification, liability management, and long-term planning—positioning insurance as an integral component of financial security rather than a standalone product.
Family protection drives decision-making
A sense of responsibility towards family remains central to purchase decisions. Rising healthcare costs, assurance to afford treatment in the best hospital, and the need to protect family members are the most powerful motivators—especially in smaller towns, where insurance is viewed primarily as a safety net for accessing quality healthcare.
Human touchpoints remain critical in closing the sale
While digital platforms such as Google and YouTube play a key role in discovery, final purchase decisions are still heavily influenced by human interactions. Among youngest consumers (24–27 years), friends and family influence 52% of decisions, while reliance on insurance agents increases with age—from 34% in 24-27 years age-group to 41% in 31-34 years age-group.
Banks, advisors, and personal networks continue to play a vital role in building trust and simplifying product understanding.
Sustained ownership remains a challenge
Retention continues to be a concern, with 6% of young policyholders lapsing their
insurance—nearly half within the first three years. Key reasons include inability to afford
premiums, perceived good health and low tangible returns, particularly among individuals who consider themselves healthy.
34% discontinued their policy because they felt they and their families were healthy, viewing the premium as an unnecessary expense. 31% opted to ` rather invest in something that gives returns”treating insurance as a sunk cost rather than a safeguard. This sentiment is notably strong in Tier 1 cities (38%), where the opportunity cost of capital is felt more acutely.
Confidence exceeds actual preparedness
The study also reveals a confidence gap—many young Indians believe they are financially and medically secure based on their current health status. However, actual preparedness remains limited, particularly among those without insurance. The report reinforces that insurance ownership significantly improves both financial readiness and overall health consciousness.
Commenting on the findings, Nimish Agrawal, Director Digital Business Unit & Chief Marketing Officer, Niva Bupa Health Insurance, said “India’s young population is increasingly aware of the importance of financial planning, and health insurance is gradually becoming part of that conversation. However, the gap between intent and ownership shows that the category still needs to become more relevant, relatable, and easier to understand for younger consumers.
With the introduction of the Health Protection Score, Niva Bupa Health Insurance aims to provide young India with a tangible framework to understand, measure, and improve their preparedness for health emergencies.”