A growing gap is emerging between financial awareness and actual protection among young Indians, highlighting concerns around long-term health security.
According to a recent report by a health insurance company, based on a survey of over 2,400 individuals aged 24–34, young Indians follow disciplined financial habits but tend to prioritise liquidity and lifestyle over insurance coverage.
The findings show that only 8% of monthly income is allocated to insurance. This is further divided, with vehicle and life insurance taking 3% each, while health insurance receives just 1%. In comparison, 40% of income goes toward essential expenses, 26% is saved in cash or bank accounts, and 14% is spent on leisure and lifestyle. Notably, lifestyle spending exceeds the 12% invested in wealth-building tools like mutual funds, SIPs, and fixed deposits.
Despite this low allocation, interest in health insurance remains high. Around 51% of respondents ranked it among their top 3 financial priorities. However, only 14% actually own a personal health insurance policy.
The report highlights key reasons behind this gap. About 38% of non-owners believe they are “too healthy” to need insurance, 36% point to high premium costs, and 33% prefer financial products that offer visible returns, seeing insurance premiums as a “lost” expense.
To assess preparedness, the study introduced a Health Protection Score (HPS), which factors in family history, lifestyle, financial readiness, and preventive care. The average score stands at 4.54 out of 10, placing most young Indians in the “somewhat vulnerable” category. Around 76% remain exposed to financial or medical emergencies.
While 58% of respondents rated their health as “excellent,” this confidence is often unsupported. About 29% of non-owners admitted they have never undergone medical check-ups or followed a healthy lifestyle.
The report also found that while discovery happens through digital platforms like YouTube (45%) and Google (42%), actual purchase decisions are influenced by personal networks. Around 62% of policyholders bought insurance based on advice from family, friends, or colleagues. Ownership is also higher among those with home or personal loans.
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