India: Almost half of millennials buy health cover for tax savings
Source: Asia Insurance Review | Nov 2015
India’s most productive and aspiring young generation which has more access to healthcare information, has not yet fully understood the importance of medical insurance cover, and almost half of them still buy these products just for tax savings.
A recent survey conducted by the country’s top private health insurer ICICI Lombard among those aged 25 to 35 years, and mostly in the highest earning bracket, showed that 46% of them purchase health insurance for tax benefits and their awareness about health insurance as a financial protection against medical exigencies is still very low, reported Business World.
The multi-city survey across Mumbai, Delhi, Kolkata, Bangalore, Chandigarh, Lucknow, Hyderabad and Ahmedabad, also revealed that 62% of this young population are covered by a floater plan and 43% of female respondents are covered by group medical insurance highlighting the need to create awareness about purchasing health insurance themselves.
Expenditure patterns
The survey also showed that these millennials spend almost 69% of their income every month. While 50% of their income is spent on family and household items followed by EMIs (equated monthly instalments) and premiums, they also spend considerably on leisure and entertainment. However, their overall expenditure on health and medical is just 5% of their monthly income, the survey revealed.
An interesting observation from the survey is that 86% of young people in the target cities believe that they are fit and healthy. The insured are more confident about their health than the uninsured.