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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.
Comparing Q4 2023 to Q4 2024, the average health insurance premium has decreased by 3.23% this quarter. On top of that, we can see a premium drop of 8.4% compared to the last quarter, downing the average premium to ₹27,783 in Q4 2024.
As illustrated in the graph below, health insurance premiums have been consistently increasing since Q3 2022 up until Q3 2024. However, the latest quarter, Q4 2024, shows a notable decline of 3.23% in the average premium. This trend highlights the importance of securing health insurance at the earliest to benefit from the current reduced rates.
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 14,098 while a 56-year-old faces an average premium of INR 37,280 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 9,048 if the 2 adults take the plan separately it will cost more which can be 18,096 which is higher, rather than they would pay for a multi individual policy for average premium of 13,089. Going for a 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 44.81% 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 | 9048 | 13089 | 15688 | 18568 | 14098 |
| 10L | 13134 | 18803 | 22700 | 27023 | 20415 | |
| 36 | 5L | 10434 | 15051 | 17828 | 20667 | 15995 |
| 10L | 15213 | 21756 | 25767 | 30012 | 23187 | |
| 46 | 5L | 14941 | 22279 | 25481 | 28096 | 22699 |
| 10L | 21640 | 32361 | 36908 | 40793 | 32926 | |
| 56 | 5L | 24717 | 37506 | 41557 | 45341 | 37280 |
| 10L | 36568 | 57260 | 63370 | 65445 | 55661 | |
| Grand Total | 18212 | 27263 | 31162 | 34493 | 27783 | |
*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 example, 26-year-old individuals pay INR 17,257, 36-year-old individuals pay INR 19,591, 46-year-olds pay INR 27,812, and 56-year-old individuals pay INR 46,470 in average premiums. 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. Evidently, you can see it in the fourth quarter of 2024 when a 36-year-old adult had a premium of INR 10,434. Adding another adult of the same age increased the premium to INR 15,051, and including a child raised it to INR 17,828 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 44.24%. However, if you add a child, the increase is more modest, around 18.45%. 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.
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