As healthcare costs continue to rise, long-term health cover policies gain traction

With healthcare expenses climbing, many policyholders are turning to long‑term health plans to shield themselves from frequent premium hikes.

“Interest in long‑term health policies, especially those spanning three to five years, has been growing noticeably,” said Narendra Bharindwal, President of the Insurance Brokers Association of India (IBAI), in an interview with businessline.

Although most health plans are issued for one year, IRDAI has permitted long‑term health insurance offerings within the current regulatory framework, provided insurers follow product‑approval procedures, underwriting rules, and other stipulations.

Several factors drive this trend. Firstly, rising inflation in medical costs and hospitalisation is prompting customers to lock in health coverage for longer periods.

“Consumers also recognise the value of uninterrupted health cover,” Bharindwal added. “Additional drivers are technological progress, better product awareness, wellness‑focused plans, and a stronger focus on preventive care.”

The head of underwriting at a major insurer noted that uninterrupted coverage offered by long‑term health plans is becoming a major draw, as it removes the yearly renewal hassle and reduces the chance of lapses.

“In addition to eliminating yearly renewal paperwork, these policies provide premium stability throughout the term, allow waiting‑period credits to be carried forward, and cut down administrative work,” the executive explained.

The surge in demand for long‑term coverage is also evident in the premium‑finance sector. “Long‑term policies make up 70‑75 % of our premium‑finance portfolio, signalling rising demand,” said Hanut Mehta, Co‑Founder and CEO of BimaPay Finsure. Buyers aged 30‑45 are especially inclined toward these plans.

Bharindwal expects the trend to strengthen ahead, though he cautioned that annual policies still dominate most segments, even as awareness expands.

IRDAI figures show that health insurance was the chief growth engine for non‑life insurers in FY2025‑26, with gross health premiums climbing 15.6 % YoY to ₹1.37 lakh crore, up from ₹1.19 lakh crore in FY2024‑25.

Published on June 14, 2026