Millennials Need To Think Of Health Insurance Now More Than Ever

2020, the year of the pandemic, has been life-changing in many ways. The novel coronavirus has completely transformed the way we live, work, and play, and getting accustomed to the ¡®new normal¡¯ is easier said than done. The global health crisis has not just affected senior citizens or the middle-aged group, but also millennials who earlier believed that the virus couldn¡¯t impact them, because of their strong immunity.

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¡°When COVID-19 had initially started, I was particular and took all precautions. Not to say, I didn¡¯t continue with it later, but I have to admit, I became slightly more casual. I began stepping out more often, and in no time, I was diagnosed with the infection. The first two days were not so bad, but as days passed, I started facing difficulty in breathing, and had to be rushed to the ICU. The virus had attacked my lungs, and it took more than three weeks to completely recover. If there¡¯s one thing I¡¯d tell everyone, it is not to take your health for granted; it doesn't matter if you are young or old,¡± says Rishi Varma, a 26-year-old corporate professional.

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The bubble has finally burst, and now millennials are now more conscious about securing their health. Thus, the search for the ¡®perfect health insurance¡¯ is on.

According to the General Industry Council, ¡°health insurance accounted for 29.7% of premiums collected by non-life insurers in the first half (April to September) of 2020-21. In 2014-15, the share of health was 23.4%. ¡°

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A change in mindset

For the longest time, health insurance has been largely driven by group policies offered by organisations to their employees. With growing awareness, millennials have started to realise how important it is to stay protected, and the cover provided by their organisations isn¡¯t enough. Exigencies can strike without announcement, leaving an individual and his family in a lurch. Moreover, with rising healthcare costs, it is always better to be prepared and have a safety net.

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Statistics reveal that premiums paid on individual policies saw a rise by 34% in the period between April-September 2020, as compared to a year ago. This is in contrast to a 16% surge recorded on group policies.

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¡°Health insurance today is a critical part of any good financial planning portfolio, it is the only instrument that can protect you from significant financial losses, in case of an emergency. Today, with improved medical facilities, medical outcomes are positive. However, there has been a significant rise in medical treatment costs. Also the recent pandemic has clearly outlined that no one, irrespective of age or economic status is immune to a health emergency, be it COVID-19 , infectious illnesses like dengue or even a critical condition like cancer. That¡¯s why it is important to be prepared,¡± affirms Jayan Mathews, co-founder at Vital.

According to a Max Bupa COVID-19 survey, it was found that over 70% of the respondents, including millennials showed a tilt towards health insurance now, as opposed to less than 10% in the pre-COVID period.

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¡°Millennials constitute India¡¯s most influential and biggest customer segment by age. Earlier, health insurance was not considered a necessity and ignored by people at large and millennials in particular. While millennials remained reluctant until the pre-COVID-19 phase, with the onset of the pandemic last year, there has been a remarkable shift in the mindset of the millennials, ¡° adds Dr Bhabatosh Mishra, Director ¨C Underwriting, Products & Claims at Max Bupa Health Insurance.

Moreover, today¡¯s fast-paced lifestyles make millennials more vulnerable to health conditions. At the same time, medical inflation is making treatments increasingly expensive. Dr Mishra believes that health insurance is no longer limited to being another tool for financial protection, but also has several other components today.

He also has a word of advice for millennials.

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"More and more health insurance products have components of wellness and prevention, annual health check-ups, premium discounts for following a healthy routine such as regular walking, jogging and exercising. All health insurance products have what is known as a waiting period for defined health conditions, pre-existing conditions, and also provide additional benefits like ¡®no claim bonus¡¯. These make health insurance products¡¯ benefit increase over a period of time, without a necessary increase in premium. That apart, each application for health insurance goes through a process of risk assessment and selection called underwriting. People with existing conditions may find it little difficult to purchase a health insurance policy at standard terms and premium. Thus, when it comes to health insurance, ¡®earlier the better¡¯ is the rule that millennials must follow. It is important for them to understand the importance of taking a health insurance plan, when they are young and healthy, so that they can safely pass off the mandatory waiting period, in case of some pre-existing diseases/conditions and enjoy the full comprehensive coverage later on, when they actually need it,¡± adds Dr Mishra.

Affordability and accessibility

There are several companies in India that offer health insurance, yet the challenge of accessibility and affordability plagues the industry. But there are some like Vital, a new-age digital health financing platform that is attempting to usher in winds of change through its innovative solutions.

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¡°The Vital Health plan is designed to provide a solution that is personalised for an individual. We combine not only health insurance that covers any hospitalisation costs, but also provide access to services that one would need for their daily health and wellness needs. Be it a doctor consultation, health checkups, nutrition counseling, mental health counseling, chronic care management plans or even fitness packs. We work with the best service partners to ensure you are getting the best of each product or service. A plan combining all these benefits are curated, based on the needs of the individual and the family. Further, these plans are offered in an affordable monthly subscription format. We have also used intelligent plan structures , to ensure you get a high cover at a low cost and control your premium outgo by upto 70%,¡± adds Mathews.

Even well-established companies like Max Bupa Health Insurance have been making consistent efforts to ensure that affordability is not a pain point for their consumers.

¡°As a company, we realised very early on that affordability is a big concern which is preventing people, especially in Tier 2/ 3 markets, from purchasing a health insurance plan. We were therefore one of the first companies to introduce health insurance plans with easy EMI options. Max Bupa offers a unique EMI option, which gives customers the flexibility to pay premiums over a period of time, without any impact on their policy, risk cover or claim event. Current millennial-buying-health-insurance trend is helping us explore every innovative avenue to connect with this segment,¡± explains Dr Mishra.

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One of their products ReAssure is a 100% cashless product and provides an unlimited sum insured for any type of hospitalisation, including COVID-19.

¡°Since our mission is to help our customers live healthier and more successful lives, we ensure to provide reassurance at every step through the ReAssure Plan. Keeping in mind the emotional and financial stress that people faced last year due to COVID, Max Bupa decided not to increase premium on any of its plans last year, even though Insurance Regulatory and Development Authority of India (IRDAI) had allowed a premium increase for all health insurance companies to comply with the regulator¡¯s standardisation guidelines,¡± says Dr Mishra.

The last word

Mathews believes that customised solutions will continue to be the preferred choice of millennials, especially since they are digital natives and much more in tune with their needs.

¡°They are aware that digital access provides them access to more choices , and hence, they will gravitate to solutions that are personalised, where their utility value is maximised. Further, they will seek the path of least resistance. So, health insurance too would require to adapt itself to this requirement to gain more acceptance. Plans now would not only need to show solutions that are relevant, but must also enable maximum utility value,¡± he adds.

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Dr Mishra is in agreement too. He believes millennials have become more responsible and proactively take care of their well-being. COVID-19 too was a big eye-opener, making them realise that they can¡¯t take their health for granted.

¡°One of the significant ongoing trends is the buying and selling of health insurance policies digitally. With digital becoming a norm, one can see an increasing percentage of millennials inquiring about health insurance plans online. Millennials have started to prioritise their health, and are much more aware about the need of a health insurance plan for themselves and their families. We also believe health insurers would come up with new-age and innovative products, specifically targeting this major segment. Products that would create value by combining elements of health, wellness and prevention. This is one area we surely expect a lot of action in innovation, both in terms of product and services,¡± he adds.

It seems like millennials are finally understanding the true meaning of ¡®Prevention is better than cure¡¯, and that¡¯s a positive sign!

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