More Indians buying insurance add-ons, Hyderabad leads trend: Report

Men prefer to buy features for financial protection after severe accidents and women choose 'critical illness riders'

Indian families are increasingly buying insurance policies that give them optional add-ons against disability, critical illness and income disruption, according to data from Policybazaar. The trend is sharper in Southern cities and among younger, salaried consumers.

 

South India leads in comprehensive cover

 

Rider attachment is highest in South India, where nearly 45–47 per cent of customers add at least one extra protection layer. This is twice the uptake seen in Northern markets, underscoring higher awareness and stronger risk-management behaviour in cities like Hyderabad, Kochi and Bengaluru.

 

Other regions are catching up, but at a slower pace:

 

East: 32–34 per cent rider attachment

 

West: 30–31 per cent

 

North: 21–23 per cent

 

Hyderabad stands out nationally, with more than half of all buyers opting for bundled protection.

 

Men and women are buying riders for different reasons.

 

Men prefer accidental death benefit (ADB) and accidental total permanent disability (ATPD) riders, which offer income support after severe accidents.

 

Women are increasingly choosing critical illness (CI) riders, particularly those offering cancer-related benefits, suggesting a rising focus on long-term health risks.

 

Metro cities with younger, affluent populations, such as Hyderabad (12–13 per cent) and Bengaluru (10–11 per cent), show the strongest uptake of CI riders.

 

Waiver of Premium grows sharply

 

One of the fastest-growing add-ons is the waiver of premium (WOP) rider, which keeps the policy active if the policyholder becomes disabled. Its uptake has risen by 42.5 per cent between July and October 2025, driven largely by women and residents of top metros.

 

• Premium-heavy markets like Hyderabad and Bengaluru have significantly influenced this surge.
• Higher covers shift preference towards health-linked riders
• Behaviour changes sharply with higher sum assured.
• For covers below Rs 2 crore, buyers lean towards accidental death riders.

 

For larger covers, customers increasingly choose Critical Illness riders, signalling a move towards protection against lifestyle diseases and long-term medical costs.

 

NRI buyers prioritise disability protection

 

Among non-resident Indians, rider adoption is even higher.

ATPD attachment is 42.1 per cent, making disability cover the most important add-on in this segment.

 

This indicates a strong focus on safeguarding family income in case of catastrophic disability, not just death.

 

If you already have a term plan or are planning to buy one, rider selection can make the difference between basic coverage and a more realistic, practical financial shield. With rising lifestyle risks and uncertain health costs, riders are no longer optional add-ons, they are becoming essential tools for overall financial resilience.