Senior citizens double down on super top-ups, drive 61% rise in portability

Three in four premiums are funded by children or family members of senior citizens: Policybazaar

As medical costs rise, senior citizens are changing how they buy health insurance. More such citizens are purchasing policies earlier in their lives; they are adding top-ups, and even switching insurers for better value, according to data provided by Policybazaar.

 

Almost six of 10 health insurance policies are bought by people aged 60 to 65, making it the most active bracket. The 66-70 segment is also seeing steady growth. About 65 per cent of policies bought by senior citizens were renewed in FY5 and one in three purchases were fresh, pointing to expanding coverage among families.

 

Cost-saving strategies

 

To manage premiums, senior citizens use tools like:

 

• 15-20 per cent opt for deductibles of Rs 2-3 lakh. 
• Top-up purchases have almost doubled in three years, with one in three senior citizens choosing such offers to expand insurance cover 
• Around 12 per cent shift to co-pay options at renewal, paying a small share of bills while insurers bear the bulk.

 

Seniors seek flexible cover and add-ons

 

Senior citizens prefer features that offer immediate and relevant insurance protection:

 

• Over 40 per cent now want cover for pre-existing conditions without waiting. 
• Women lean towards OPD and wellness riders, while men prefer critical illness add-ons. 
• Demand for domiciliary treatment has risen, especially after Covid-19.

 

Portability rising

 

As many as 61 per cent senior citizens have changed their insurers in two years for cheaper premiums or better service, according to Policybazaar. This shows growing financial awareness in evaluating long-term value, not just price.

 

Urban-rural divide

 

Insurance penetration is better in cities like Delhi, Bengaluru and Hyderabad, where seniors buy higher covers of Rs 10-25 lakh. Coverage in villages and towns is largely driven by government schemes, though Tier-II cities are slowly bridging the gap.

 

Premium payment

 

Nearly three in four premiums are funded by children or family members of senior citizens. Of these, 11 per cent come from children living abroad, highlighting the role of overseas support in ageing parents’ healthcare. About 27 per cent of seniors, however, still pay premiums on their own.

 

“We’re witnessing a significant shift in how India’s senior citizens approach health insurance. Seniors are insuring earlier, buying larger covers and making smarter choices, whether through super top-ups, portability or Day-1 coverage,” said Siddharth Singhal, business head, health insurance, at Policybazaar.