As healthcare costs continue to rise, policyholders are increasingly seeking greater protection against frequent premium revisions by switching to long-term health insurance policies. According to The Hindu BusinessLine, Narendra Bharindwal, President of Insurance Brokers Association of India (IBAI), noted that consumer interest in long-term insurance coverages has been notable, especially those covers that run for between three to five years. While health cover policies generally come with a tenure of one year, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed long-term health insurance products under the existing regulatory structure subjected to adherence to product approvals, underwriting guidelines, and other norms by insurers.
Several factors are contributing to this shift in consumer behavior. As reported by The Hindu BusinessLine, high inflation in healthcare expenses and hospital stays are pushing customers towards securing health insurance policy for a prolonged period. Bharindwal explained that consumers are becoming increasingly aware of the importance of health insurance coverage without any breakage periods. Other contributing factors include technological advancements, product awareness, wellness health insurance policies, and the growing emphasis on preventative health care services. According to the Head of Underwriting at a leading insurance company, uninterrupted coverage under long-term health insurance policies is emerging as a key attraction as it eliminates the need for annual renewals and lowers the risk of policy lapses.
The growing demand for long-term cover is also reflecting in the insurance premium finance business. Hanut Mehta, Co-Founder and CEO of BimaPay Finsure, told The Hindu BusinessLine that the insurance premium finance portfolio is dominated by long-term policies, which account for 70-75 per cent of the business, indicating that the demand for these policies is increasing. Those who are in the 30-45 years age bracket are showing a greater predilection to buy long-term cover, with the trend likely to catch up further going forward according to Bharindwal.
According to IRDAI data reported by The Hindu BusinessLine, the health insurance segment remained the principal growth driver for the non-life insurance industry in FY2025-26, with gross health premiums rising 15.6 per cent year-on-year to ₹1.37 lakh crore, up from ₹1.19 lakh crore in FY2024-25. While annual policies still form the bulk of most market segments, consumer awareness continues to grow, suggesting the trend toward long-term coverage may continue to gain momentum in the insurance sector.
