BENGALURU, IN / ACCESS Newswire / September 23, 2025 / According to a recent report by ACKO Insurance, only 2% of its health insurance policy buyers are in the 20 to 25 age group. This number has remained flat for over a year, showing no signs of upward momentum.

This points to a troubling gap in health insurance adoption among Gen Z in India. It also points to a wider trend of young Indians delaying financial planning. Many still view health insurance as a future need rather than a current priority.

Why is this digitally native and wellness-conscious generation holding back? Let's break it down in this article.

What The Numbers Say

ACKO Insurance analysed its customer base between April 2024 and April 2025. Here's what they found:

• Only 2% of policy buyers were aged 20-25

• No increase in Gen Z's share of health insurance buyers across five quarters

• 40% of policy buyers are between 30-45 years, often entering mid-career or family life

• 17% of buyers are 65 years or older, showing delayed coverage despite higher risk

• Just 12% of health policies include elderly parents, pointing to weak intergenerational planning

These insights suggest that most Indians view health insurance as a milestone-based purchase, something to consider only after marriage, parenthood, or a medical emergency.

The uptake remains geographically skewed as well. Urban cities that contribute to over half of ACKO's customer base are:

This shows that rural and semi-urban areas may not have enough access to insurance or awareness about its early benefits.

The Trend Gen Z Overlooks

Despite high engagement with fitness trackers and wellness apps, Gen Z's digital wellness behavior hasn't translated into insurance uptake. ACKO Insurance's Managing Director and CEO, Animesh Das believes this is not just an awareness issue. "The issue isn't just awareness, but of a deeper gap in relevance, access, and timing. Individuals need to understand that health insurance isn't just a financial product, it's a wellness tool," he said.

Why Gen Z Isn't Signing Up for Health Insurance

1. "I'll Buy It Later" Mindset

Most young adults don't feel the immediate need for health coverage, assuming they can buy it when they're older or when they start a family.

2. Daily Expenses > Coverage

Between student loans, EMIs, rent, SIPs, and other day-to-day expenses, insurance falls lower on the priority list for Gen Z.

3. Old Process for New Users

While Gen Z is digital-first, and prefers easy-to-access and customisable services, many traditional insurance plans still rely on paperwork and offline processes.

4. The Myth of "It's Too Expensive!"

A common misconception is that health insurance is too expensive. But ACKO's individual health insurance price starts from ₹21 per day, depending on age and coverage. This allows early buyers to enjoy low premiums with shorter waiting periods.

Why This Is a Problem

When you're young and healthy, delay in buying health insurance may seem harmless but it has long-term consequences.

• You miss the chance to avail low premium rates.

• Pre-existing conditions later in life can reduce your policy benefits.

• You lose years of tax savings under Section 80D.

• Medical emergencies without coverage can burn a hole in your finances.

Summing Up

The 2% health insurance uptake among Gen Z is a wake-up call. As India's healthcare costs rise, early health insurance planning is no longer optional. Whether it's for preventive checkups, wellness benefits, or major medical coverage, buying young pays off.

Gen Z may be digital-first, but it's time they became insurance-first too.

Media Contact
Website: https://www.acko.com/
Email: hello@acko.com

SOURCE: Acko