Policybazaar data reveals 4X surge in monthly and quarterly premiums, specially in Tier 3 cities
Digging deeper into the statistics, it was found that 80 per cent of male customers prefer monthly installments compared to only 20 per cent of their female counterparts. Read more.
Policybazaar's latest data analysis points towards a substantial shift in customer payment preferences for health insurance premiums. The surge in monthly and quarterly premium payments, amounting to a fourfold increase, indicates changing dynamics, particularly in Tier 3 cities where financial constraints often pose a significant challenge.
According to the data, a significant 33% of young salaried individuals aged 26 to 35 are opting for the monthly payment mode when purchasing health insurance for the first time. This shift is seen as a strategic move to ease the burden of one-time payments, catering to the financial constraints faced by many individuals.
Digging deeper into the statistics, it was found that 80 per cent of male customers prefer monthly installments compared to only 20 per cent of their female counterparts. This gender-based divergence is an intriguing aspect of the evolving trend.
More strikingly, the trend is most pronounced in Tier-3 regions, where 44 per cent of individuals are choosing monthly payments. In comparison, Tier-2 cities exhibit a 31 per cent preference, while Tier-1 and metro cities lag behind at 23 per cent. This disparity suggests that in Tier-3 cities, the installment option is considered particularly convenient, allowing individuals to manage health insurance premiums without facing undue financial pressure.
The post-pandemic scenario has played a pivotal role in driving increased health insurance awareness. As a result, more buyers are opting for monthly payment features, often with a preferred sum insured of Rs 1 crore. This signifies a growing understanding of the importance of health coverage, prompting individuals to choose flexible payment options.
Despite the insurance companies charging a slightly higher premium (3-4%) for the monthly or quarterly payment mode, the positive aspect is the financial flexibility it provides without compromising on policy benefits. This shift in payment preferences indicates a changing landscape in the health insurance sector, with customers prioritising affordability and flexibility in the face of evolving economic circumstances.
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