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Health Insurance Price Index
Analysis and Insights from Pricing of Health Insurance
from leading insurance companies in India.
Analysis and Insights from Pricing of Health Insurance
from leading insurance companies in India.
In Q4 2020, health insurance premiums saw a significant surge, outpacing the inflation rate. Comparing Q3 2023 to Q3 2024, health insurance premiums have risen by 6.43% this quarter. Fast forward to Q3 2024, and we observe an additional 5% increase in premiums compared to the previous quarter, with the average health insurance premium now at ₹30,330. This consistent rise underscores the urgency for individuals to secure health insurance now, as premiums are likely to keep rising alongside inflation.
New data highlights the importance of purchasing health insurance at a younger age to benefit from significantly lower premiums. A 26-year-old can secure a 5 lakh sum assured with premiums averaging INR 15,753 while a 56-year-old faces an average premium of INR 45,525 for the same coverage.
When looking at the insurance cost for an adult who's 26 years old and chooses a coverage of 5 lakh the premium they need to pay is 10,068. If 2 adults take the plan separately it will cost more around 20,136 which is higher, rather than what they would pay for a multi-individual policy for an average premium of 14,573. Going for a combined plan can lead to savings. So it's advisable to go for a combined plan to cut down on expenses.
This highlights the fact that the premium does not increase proportionately with the sum insured. From INR 5 lakh to INR 10 lakh sum insured, there was a hike of only 24.87% in premium compared to a 100% increase in the sum insured. This data clearly illustrates that health insurance premiums increase with age, highlighting the financial benefit of securing health insurance early.
| Age | Sum Insured | 1A | 2A | 2A+1C | 2A+2C | Grand Total |
| 26 | 5L | 10068 | 14573 | 17649 | 20724 | 15753 |
| 10L | 12539 | 18421 | 22093 | 25630 | 19671 | |
| 36 | 5L | 11903 | 16984 | 20142 | 23266 | 18074 |
| 10L | 14982 | 21727 | 25414 | 28905 | 22757 | |
| 46 | 5L | 18296 | 26781 | 30227 | 33780 | 27271 |
| 10L | 23551 | 34984 | 38921 | 43083 | 35135 | |
| 56 | 5L | 30813 | 45353 | 50537 | 55398 | 45525 |
| 10L | 39008 | 59078 | 64881 | 70863 | 58458 | |
| Grand Total | 20145 | 29738 | 33733 | 37706 | 30330 | |
*Source: Average prices in the above tabular data are determined by the leading 5 health insurance companies in India. These prices are for illustration purposes only. Actual prices may vary from insurer to insurer
The premiums paid by individuals vary based on age categories. For instance, those in the 26-year-old category pay an average of INR 17,712, while the 36-year-old category pays INR 20,415. The 46-year-old category has an average premium of INR 31,203, and the 56-year-old category pays INR 51,991. However, starting a health plan early offers advantages, including improved coverage chances and the accumulation of benefits such as increased sum assured, premium discounts, and restoration benefits.
If you are looking for health insurance estimate cost for you and your family use our health insurance calculator to calculate premium online instantly.
Calculate NowAdding family members to your health plan can lead to varying premium costs. A family floater plan allows the inclusion of your spouse and children under a single policy without experiencing a significant premium hike. This is evident in the third quarter of 2024 when a 36-year-old adult had a premium of INR 11,903. Adding another adult of the same age increased the premium to INR 16,984, and including a child raised it to INR 20,142 for two adults and one child in the same age category, with a sum insured of 5 lakhs.
Opting for family floater plans often leads to cost savings. When including another adult of the same age with 5L SI, the premium typically rises by approximately 42.68%. However, if you add a child, the increase is more modest, around 18.59%. Considering this, ensuring the entire family under a single policy via a family floater plan can be a budget-friendly choice.
The prices & charts displayed above are based on the average premium prices of 5 health insurance companies in India. To update the PolicyX Price Index, we have considered the data of 5 trustable Indian private health insurance companies, in terms of their latest earned GWP. These companies are Star Health and Allied Insurance Co. Ltd, ICICI Lombard General Insurance Co. Ltd, Bajaj Allianz General Insurance Co. Ltd, HDFC ERGO General Insurance Co. Ltd & Care Health Insurance Co. Ltd.
The prices given are a representation of the yearly premium for every sample policyholder in terms of age, coverage type, and opted sum insured on Q3 2024 (October - December 2024). The Insurer's individual rate may vary depending on age, coverage type, health profile, sum insured & add-on riders.
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