This was revealed in a study titled ICICI Lombard’s report on emerging trends in health insurance with focus on taxation benefit.
At the same time, individuals aged 26-45 make a greater set of investments, the report states.
The preference for health insurance as a tax-saving option is on the rise in non-metro areas, emphasising its increasing appeal beyond major cities.
A remarkable 84 percent of financially savvy customers have invested in health insurance, showcasing the growing recognition of the importance of health coverage.
Lower awareness
The report further highlights that there is a need to spread awareness with only 54 percent of consumers being fully aware of how they can save tax by investing in health insurance.
However, the future for health insurance looks promising, with close to 98 percent of existing health insurance owners expressing their likelihood to renew next year.
Over 6 in 10 respondents rely on friends, family and their bank relationship manager as key sources of information for understanding how to make tax savings, it further states.
At the same time, the younger group (21-35) shows a greater reliance on self-awareness through knowledge in the public domain.
Key drivers
When it comes to health insurance, one of the top reasons to buy health insurance is cashless claims followed by the protection of savings and managing inflating medical costs.
It is vital to note that intentions to buy health insurance are not solely driven by tax benefits. Women, with the growing female working population, are more likely to purchase health insurance for tax exemptions in the next year
At the same time, only 30 percent of consumers cited tax exemptions or rebates as one of the top reasons for buying health insurance, indicating that tax benefits are not the primary driver for most consumers.
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Published: 17 Feb 2024, 10:39 AM IST