India has a sizeable chunk of the millennial demographic – 34% of the total population – to be exact. While this may be a significant percentage, before the pandemic hit, this consumer segment was rarely considered to have an adequate insurance policy.
The pandemic has brought about an irreversible revolution in the insurance industry, and has also accelerated the awareness level, regardless of age.
The rise in health emergencies, cutting across age groups, has warned the youth to take precautions to stay prepared along with a protective shield.
Fortunately, the insurance ecosystem is working in tandem with this transition to effectively meet the needs of the millennials with innovative health insurance products. More modular, more consumer-centric, here’s how health insurance products are evolving to suit Millennials.
OPD coverage
Traditionally, the main reason young people did not purchase health insurance was that they did not anticipate the occurrence of hospitalizations. However, health insurance is no longer triggered only when someone is hospitalized. OPD, as a category, has gained immense momentum in the past few months, all due to high-speed product innovation. With OPD coverage, coverage can now be expanded to include expenses such as doctor consultation, lab tests, medicines, dental care and preventive health care, which account for over 70% of healthcare expenditure in the country.
Though beneficial for all, this coverage is specifically targeted towards Millennials, who will find OPD expenses more relevant to them.
cumulative bonus
While NCB, or No-Claim Bonus, is a well-known feature in health insurance, cumulative bonus is considered to be an even wider version of it.
Even though health insurance protects the policyholders from unprecedented financial shocks, it is also seen as a constant recurring expenditure.
However, the new age plans are customer centric and offer protection along with affordability. Under Cumulative Bonus, policyholders can easily increase their Sum Assured even if a claim is made during the term of the policy.
Bonuses are added to your Sum Assured at the beginning of each policy year. The useful feature ensures that you are protected even when there is a need to make a claim.
maternity plans
Maternity expenses are unavoidable for most millennials.
While parenthood is a natural and beautiful milestone in one’s life, it is also something that requires thorough financial planning. The stipulation here is that maternity plans must be bought well before the pregnancy actually occurs.
However, now there are plans available in the market which have made it easier for people planning a family in the near future. Earlier, the waiting period was anywhere from 2 to 4 years. Now, plans offer a waiting period of around 9 months to 1 year, making it easier to estimate and assess maternity expenses and buy a policy.
The plans are now more comprehensive, with additional benefits and features such as coverage for NICU, legal termination of pregnancy, and even in-vitro fertilization.
mental health coverage
Mental health issues were previously swept under the carpet. However, it took a global pandemic to change that.
Isolation, loss of loved ones, limited sociability – there are many factors that have pushed people over the edge. While the prolonged situation of the pandemic has adversely affected the mental health of all age groups, studies show that more millennials are now suffering from depression, anxiety and similar issues.
Keeping this in mind, IRDAI has also mandated coverage of mental health issues under the ambit of health insurance. To comprehensively cover mental health, one should opt for OPD coverage to ensure that doctor consultation is also a part of the policy.
welfare benefit
The pandemic has been a wake-up call for everyone to take stock of their health and immunity. Now, health insurance plans also reward you for staying healthy. So, every time you hit the gym or e-track your steps, your insurer can better assess your risk profile and reward you for better performance.
Primarily targeted at the younger consumer set, wellness benefits are earned by the policyholder who meets the insurer’s fitness criteria.
This could be a discount on premium or a higher sum assured or vouchers that would reward the customer.
This not only encourages the policyholder to stay healthy but also helps in keeping the cumulative risk low. Not to forget, it also encourages the policyholder to renew their health insurance.
(The author is Business Head Health Insurance, Policybazaar.com)