Written By: Simran saxena

Simran saxena

Health and Term Insurance

Simran has over 4 years of experience in content marketing, insurance, and healthcare sectors. Her motto is to make health and term insurance simple for our readers has proven to make insurance lingos simple and easy to understand by our readers.

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Reviewed By: Anchita Bhattacharyya

Anchita Bhattacharyya

Health, Term & Life Insurance

Anchita has over 6 years of experience in content marketing, insurance, and healthcare sectors. Her motto to make health and term insurance simple for our readers has proven to make insurance lingos simple and easy to understand by our readers.

Updated on Jun 16, 2025 16 min read

Health Insurance for Gen Z

Are you someone who has just graduated from college? Life is amazing, no? Adulting can be a lot, but you never know when life takes a turn and something unfortunate happens. Stressing about medical bills is the last thing on your plate. However, investing in a health plan will prevent you from going broke. From routine check-ups to those ’just in case’ moments, being covered means less worry and more living.

traordinary Facts

Are you a Gen Z?

If you are someone born during the mid or late 1990s to the early 2010s, then you are called Gen Z. Generation Z, or Gen Z, includes those born after Millennials and before Generation Alpha. A common range used by many researchers and popular media is 1997 to 2012. 

POV - Nowadays, Gen Z are becoming an integral part of the global workforce at a fast pace.

Why is it Important for Gen Z to get Health Insurance?

Getting health insurance is important for everyone. But, for Gen Z, it is the most important thing in India today. With medical costs soaring at a staggering 14 per cent annually in India, accessing quality healthcare is becoming increasingly difficult. Individuals undergoing treatment often face overwhelming financial burdens. PolicyX Experts strongly advise Gen Z to secure health insurance as early as possible to mitigate these risks. Also, as early as you get the insurance, your premium will be lower.

Read below to understand in detail from Insurance Experts at PolicyX.com:

1. The Stark Reality of Rising Healthcare Costs:

   • Medical Inflation is Relentless

     As we’ve discussed, medical inflation in India is significant (around 14% annually). Healthcare costs are rising quickly. This includes everything from doctor visits to hospital stays and medications. What might seem affordable today could be prohibitively expensive in a few years. For Gen Z, who are just starting their financial journeys, a sudden, large medical bill can be financially devastating.

   • Quality Treatment Comes at a Premium

     Accessing good hospitals and experienced doctors often involves significant expenses. Without insurance, Gen Z might have to choose lower-quality treatment due to financial concerns. This could result in worse health outcomes over time.

2. The Inevitability of Health Issues

   • It Won’t Happen to Me" is a Risky Mindset

     While you are young and may feel healthy, health issues are unpredictable. Accidents, sudden illnesses like infections or autoimmune conditions, and lifestyle issues can occur at any age.

   • Mental Health is Also Health

     We know how you prioritise, are more aware of, and open about mental health. Good health insurance plans like Niva Bupa Aspire increasingly include coverage for mental health services like therapy and counselling. Prioritising mental well-being is crucial, and insurance makes these services more accessible.

   • Preventive Care is Crucial (and Covered)

     Health insurance isn’t just for when you’re sick. Many policies cover preventive care like regular check-ups, screenings, and vaccinations. These can help detect potential health problems early, making them easier and cheaper to manage. Investing in preventive care now can save significant costs and health complications later.

3. Financial Prudence and Future Security

   • Protecting Your Hard-earned Money

     Now, you will be going to start your career and build your financial future. A big, unexpected medical bill can drain your savings. It can also push back financial goals, like education, buying a car, or investing early. Plus, it may lead to serious debt. Health insurance acts as a financial shield, protecting your hard-earned money from day 1.

   • Early Investment, Lower Premiums (Potentially)

     Generally, younger individuals tend to have fewer pre-existing health conditions. This can translate to lower premiums when you start a health insurance policy early. As you get older, you’re more likely to have health problems. This can mean higher premiums or trouble getting full coverage.

   • Tax Benefits

     Getting health insurance will not only protect your hard-earned money but also get you tax benefits under section 80D of the Income Tax Act.

   • Peace of Mind

     Knowing you have a financial safety net for healthcare allows you to focus on your goals and aspirations without the constant worry of how you would handle a medical emergency. This peace of mind is invaluable.

4. The Changing Landscape of Healthcare

   • Technological Advancements are Costly

     While medical advancements offer better diagnostic tools and treatments, they often come with higher costs. Insurance helps make these advancements accessible.

   • Lifestyle Factors

     Modern lifestyles can sometimes contribute to health issues later in life. Insurance helps you get the care you need and handle any health issues that come up.

For Gen Z in India in 2025, health insurance isn’t a luxury – it’s a fundamental necessity for:

Delaying health insurance is a gamble with your financial and physical well-being. For Gen Z, getting insured early is a smart choice. It offers important protection and peace of mind for the future.

Life of Gen Z Without Good Health Insurance

Imagine you are a 24-year-old boy without health insurance in India. Your life will be something like this:

1. Living Under the Constant Shadow of Financial Risk

   • One Illness Away From Debt

     Without health insurance, you, as a Gen Z individual, are highly vulnerable to significant medical debt. A sudden illness, an accident while commuting in busy streets, or even a necessary surgery could lead to hospital bills running into lakhs of rupees. This can derail their financial plans, forcing them to dip into savings, take out quick loans with high interest rates, or even face bankruptcy at a young age.

   • Delayed Dreams and Limited Opportunities

     The burden of medical debt can impact major life decisions. Your dream of buying a house or travelling the world might be postponed because of worries about huge medical bills.

   • Stress and Anxiety

     The constant worry about how to pay for unexpected healthcare can lead to significant stress and anxiety, impacting your mental well-being and overall quality of life. This can be tough in high-pressure places like Gurugram or Mumbai, or Bangalore, where career competition is fierce.

2. Compromised Healthcare and Well-being

   • Hesitation in Seeking Timely Care

     Without insurance, you might delay or avoid seeking medical attention for illnesses or injuries due to cost concerns. This can lead to minor health issues becoming severe and more expensive to treat in the long run. For instance, a simple infection ignored could escalate into a serious condition requiring long-term hospitalisation.

   • Limited Access to Quality Facilities

     Access to the best hospitals and specialists in India often comes with higher costs. Without insurance, Gen Z might be limited to less equipped facilities or face long waiting times in public hospitals, potentially affecting the quality of care they receive.

   • Skipping Preventive Care

     Regular check-ups, screenings, and vaccinations are crucial for maintaining long-term health. Without insurance for these services, you may skip them to save money. This could raise your risk of serious health issues that might have been prevented or found early.

   • Mental Health Neglected

     Mental health services, which are increasingly recognised as vital, can be expensive. If you lack insurance for therapy or counselling, you may struggle to afford the help you need. This can harm your emotional and mental health in a tough environment.

3. Long-term Financial and Health Implications

   • Difficulty Building Wealth

     Medical debt can create a significant setback in your financial journey, making it harder to save, invest, and build long-term wealth. This can affect the ability to achieve financial independence and security as they age.

   • Poorer Health Outcomes

     Delaying or forgoing necessary medical care can lead to poorer health outcomes and a higher risk of chronic diseases in the future. This can impact productivity, career prospects, and quality of life in their later years.

   • Increased Vulnerability

     Without the financial safety net of health insurance, Gen Z remains highly vulnerable to unforeseen health crises that can have long-lasting and devastating consequences on their lives and finances.

Your Gen Z Guide to Navigating Health Insurance

Alright, let’s dive into the nitty-gritty of your options:

• Employer-sponsored Health Insurance (Group Health Insurance): If you’re employed, chances are that your company offers health insurance as part of your benefits package.

   

• What to Know: Understand what the plan covers, which hospitals are in their network (where you can get cashless treatment), and what your co-pays or deductibles are. Don’t be afraid to ask HR for a detailed explanation!

   

• Individual Health Insurance Policies: You can purchase your health insurance policy directly from an insurance company. This gives you more control over the coverage and sum insured (the maximum amount the policy will pay out).

   

• Popular Plans for Young Adults: Look for plans that offer a good balance of coverage and affordability. Popular choices in India include:
  • Niva Bupa Aspire
  • Star Health Assure
  • Aditya Birla Activ Health Platinum Enhanced
  • ManipalCigna ProHealth Prime
• These have features tailored to younger individuals.

   

• Key Things to Consider:
• Sum Insured: How much coverage do you need? Consider the potential high medical costs of now and the future.
• Premium: What’s your monthly or annual payment? Factor this into your budget.
• Network Hospitals: Are there good hospitals near you that are part of the insurer’s network? Cashless treatment is a huge plus.
• Waiting Periods: Most policies have waiting periods for certain pre-existing conditions or specific treatments. Understand these before you buy.
• Coverage Details: What illnesses, procedures, and treatments are included? Does it cover mental health? What about pre and post-hospitalisation expenses? A comprehensive health policy covers all these and more.
• Additional Benefits: Some plans offer extra perks like OPD (Out-Patient Department) coverage, wellness programs, or free health check-ups.
• Family Floater Plans: If you have a young family or want to cover your parents, a family floater plan can cover multiple family members under a single sum insured.
• Considerations: Ensure the sum insured is adequate for everyone’s potential needs.

Low-cost or Basic Health Insurance Plans: If budget is a major constraint, look into basic plans that offer essential coverage at lower premiums. These might have limitations on the sum insured or a limited list of hospital networks.

Top 5 Affordable Health Insurance Plans for Gen Z in 2025

FYI- You can see a health insurance plan is not that costly, right? What are you waiting for? Call us now and get expert advice. 

Gen Z’s Expectations from Health Insurance

Growing up in a digital world and facing economic challenges, they expect more from their health insurance.

1. Digital-first and Seamless Experience:

   • Convenience is Key: Gen Z expects to manage health insurance entirely online, from researching and purchasing policies to making claims and accessing support. They prefer user-friendly mobile apps and websites.
   • Tele-health Integration: Virtual consultations, online prescription refills, and digital health records are not just perks but expected features for easy and quick access to healthcare.

2. Transparency and Clear Communication:

   • No Jargon: They want clear, concise information about their coverage, costs (premiums, deductibles, co-pays), and benefits without complex jargon or hidden clauses.
   • Honest and Ethical Practices: As a socially conscious generation, they value transparency and expect insurance providers to be honest and ethical in their dealings.

3. Affordability and Value:

   • Low-Cost Options: Many in Gen Z are in the early stages of their careers and are cost-sensitive. They actively seek affordable plans with lower premiums.
   • Value for Money: While cost is important, they also want comprehensive coverage that provides real value and meets their healthcare needs effectively.

4. Comprehensive Mental Health Coverage:

   • Prioritising Well-being: Gen Z is more open about mental health and expects their insurance to cover therapies, counselling, and other mental health services.
   • Integrated Approach: They appreciate a holistic view of health that includes both physical and mental well-being.

5. Preventive Care and Wellness Focus:

   Proactive Health Management: They want plans that include regular check-ups, screenings, and vaccinations. They also like wellness programs or rewards for healthy habits, such as gym memberships or fitness trackers.

6. Personalised and Flexible Plans:

   • Tailored Options: Gen Z appreciates insurance plans that can be customised to their individual needs and lifestyles, offering flexibility in coverage levels and add-on benefits.
   • Modular Products: They may prefer modular insurance products that allow them to choose specific coverages relevant to their life stage and health status.

7. Focus on Specific Needs:

   • Early Retirement Planning with Health Features: Many Gen Z individuals in India want term insurance with health and wellness benefits. This shows they are thinking ahead about their financial and health security.
   • Convenient Access to Information: They often research health information online and may look for insurance providers who offer reliable and easy-to-understand health literacy resources.

8. Trust and Authenticity:

    

   • Peer Influence: While the digital approach is mostly preferred, many still rely on trusted sources like agents or bank advisors for insurance purchases, alongside online research. They also value genuine customer stories and experiences.
   • Socially Responsible Insurers: They may be drawn to insurers that demonstrate social responsibility and align with their values.

Gen Z wants health insurance to be easy to access and affordable. They expect it to be clear and digitally connected. It should focus on both physical and mental health. Also, they want options that fit their personal needs and budgets.

Step-by-Step Guide to Buying Health Insurance Online

Here’s your step-by-step guide to buying health insurance online in 2025. It’s easier than ordering food online, promise!

Step 1: Research and Understand Your Needs (The "Why")

Consult for Personalized Insurance Advice

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