Indians in the age group 25-35 are most likely to opt for and use mental health insurance benefits according to a recent analysis by Indian insurance online platform PolicyBazaar.com.
The new analysis considered the trend in internet searches about mental health insurance, actual online purchase of mental health covers and subsequent filing of mental health insurance related claims. The analysis reveals that mental health insurance research grew at 41% as compared with the study conducted in 2024.
Also, there has been 30–50% rise in mental health–related insurance claims over the last couple of years. The findings reveal that the 25–35-year-olds face unique stressors in life, especially with respect to work-life imbalance, financial insecurity and job instability.
It was also observed that the 25-35 age group regularly filed claims for therapy, stress counselling, and anxiety medication. This age group also engages actively with digital mental health platforms and app-based therapy tools for their mental health issues. The analysis says that the surge among this group correlates with increased awareness, openness, and life-stage pressures.
Most mental health insurance claims are for mild to moderate conditions, reflecting higher detection and openness to early intervention. However, chronic and severe disorders remain underreported, possibly due to the still prevailing stigma and a lack of diagnosis facilities to a larger section of the country’s population.
Policybazaar head of health insurance Siddharth Singhal said, “The remarkable surge in mental health insurance searches, driven by young adults, women, and those in high-stress professions points to a larger societal shift where people are not only more aware of mental well-being but are actively seeking financial protection for it.
He said, “With OPD benefits, cashless therapy and wider acceptance, we are seeing mental health move from the margins to the mainstream of healthcare planning. On an industry level and as a society, we need to keep building on this momentum by making access easier, stigma lower, and coverage stronger.”
The analysis found that while anxiety disorders account for 30–35% of mental health claims, depression contributes to around 25–30% of claims. It said Wider availability of OPD benefits, reduction in stigma, especially in urban and educated circles and post-pandemic awareness about good health and mental wellbeing have catalysed the significant growth in mental health insurance covers.
An encouraging trend noticed was about the women being 27% more likely to enrol mental health coverage. Also, it was noted that 65% of insured women choose policies that offer add-ons or features addressing mental and hormonal health. In addition, higher claim rates for stress, anxiety, and depression from women policyholders are linked to reproductive life stages and emotional caregiving roles.
Also, mental health–related insurance claims, which include therapy sessions, psychiatric consultations and prescribed medication — are no longer fringe or rare. Therapy and counselling have become common uses of OPD benefits and cashless mental health services are being utilised more frequently.