Senior Health Insurance Grows 50–60 % With Most Buyers Aged 60–65

According to recent studies, the uptake of health insurance among older Indians has surged by 50 to 60% in the past few years. Nowadays, a significant proportion of new buyers fall within the 60 to 65 age band. That tells you one thing clearly: people are increasingly aware that health costs don’t wait!

When you think of protecting your parents or yourself in later years, choosing the right health policy becomes a critical decision. In this article, you learn everything about health insurance for senior citizens and also how health insurance for parents fits into your family plan.

The steep rise in health insurance for senior citizens

• Reports indicate that nearly 6 in 10 health insurance policies for seniors are bought between the ages of 60 and 65.

• The average claim size across India has increased sharply. In FY25, the average health insurance claim was around Rs. 81,000, up from about Rs. 62,000 just a few years ago.

• In the senior citizen segment, average claims are often reported in the range of Rs. 1.8 to 2.5 lakh.

• Many older people now prefer policies with higher coverage. Studies show that about 73 % of policyholders over 60 are choosing covers of over Rs. 10 lakh.

How to pick the best health insurance for senior citizens?

When you shop for health cover at older ages, insurers make a deep scrutiny. Many plans even impose waiting periods (1 to 3 years) for pre-existing diseases. You cannot make an insurance claim before the expiry of this period.

Additionally, premiums are usually steep for older individuals. However, in 2025, regulators have set a rule! Now, insurers cannot raise premiums for senior citizens by more than 10% a year without special approval.

To select a good health insurance for senior citizens, you can consider these tips:

1. Lifelong renewability

   You must be able to renew your plan for life, regardless of your health changes. Good senior plans offer this.

2. Network hospitals and cashless treatment

   Ensure the insurer has a wide network so you can use cashless services. Seniors often prefer cashless claims to avoid upfront payments.

3. Co-payment and sub-limits

   Some plans make you bear a portion of costs (co-pay) or cap how much they pay for certain treatments. Lower co-pay is better for you.

4. Add-ons and wellness benefits

   Many older people prefer benefits like annual check-ups, tele-consultations, and OPD coverage. These reduce the burden of minor expenses.

How to choose health insurance for parents (or for you as you age)?

You may be buying for your ageing parents or preparing your own cover. Here’s a practical checklist to select a good plan:

• Sum insured: Don’t pick too low. Given escalating costs, consider coverage of Rs. 10 to 15 lakh or more if you can.

• Premium affordability: It should be manageable in the long run, especially if health costs rise.

• Waiting period: Aim for the shortest possible waiting time on pre-existing conditions.

• Claim settlement record: Go with insurers having high claim settlement ratios as they are more reliable.

• Lifetime renewability: Absence of this can render the policy useless later.

• Coverage features: Look for coverage of treatments like outpatient care, home care, ICU, organ transplantation, etc.

How your health insurance fits with other protections

Health cover doesn’t work in isolation. Insurance alone can’t handle every medical expense or financial need. You also need a mix of savings, emergency funds, and preventive care. For example, a fixed deposit or health fund can cover non-medical costs, while regular check-ups and a healthy lifestyle reduce the need for frequent claims.

Want to build a holistic plan? Here’s how you can do so:

Secure comprehensive health insurance for senior citizens

Choose a policy that offers broad coverage, including hospitalisation, day-care procedures, and critical illness. It ensures you or your parents are protected against large, unpredictable medical bills without draining your savings.

Buy separate health insurance for parents early

Don’t wait until health issues arise. Buying health insurance for parents early helps lock in lower premiums and avoids long waiting periods for pre-existing diseases. It also keeps them financially independent during medical emergencies.

Build a dedicated health emergency fund

Set aside 3 to 6 months of household expenses in a liquid fund or fixed deposit. This reserve can handle:

• Co-payments

• Post-hospitalisation costs

• Non-covered treatments

This reduces the pressure on your insurance policy.

Perform preventive and wellness measures

Regular health check-ups, fitness routines, balanced nutrition, and timely vaccinations help detect issues early. Many insurers even reward such habits through wellness benefits or discounts on renewals.

Review and update your cover regularly

Medical costs rise every year. Revisit your policy every 12 to 18 months to check if the coverage, add-ons, and sum insured still match your needs. If your parents’ health changes, upgrade the policy or opt for a top-up plan to stay adequately protected.

5 ‘don’ts’ to avoid while picking health insurance for senior citizens

1. Don’t delay coverage until health issues appear. Insurers may reject or overprice policies.

2. Don’t choose a very low sum insured. The cost of treatment rises fast.

3. Don’t ignore fine print. Sub-limits, co-pay clauses, and exclusions can significantly impact your claims.

4. Don’t forget to check the insurer’s hospital network.

5. Don’t let the policy lapse. Once you lose it, resuming later can be problematic.

Conclusion

The surge in uptake of health insurance for senior citizens is no accident. Nowadays, people are recognising that medical costs can derail even good savings. Whether you’re buying cover for yourself or arranging health insurance for parents, choose plans thoughtfully. Particularly, focus on:

• Lifetime renewability

• Strong coverage

• Affordable premiums

• Reliable insurers

In an age when health risks are rising, having a robust health insurance plan is not just smart, it’s essential.