More than half of India's Gen Z population is actively investing in wealth-building instruments such as mutual funds and systematic investment plans (SIPs), but many are delaying the purchase of personal health insurance, according to a new report by BajajCapital Insurance Broking Ltd.
Released on Insurance Awareness Day, the report, How Modern India Protects Its Future: India's Health Insurance Reality Report 2026, found that 51% of Gen Z respondents invest proactively. However, a significant number continue to rely on parental or employer-provided health insurance rather than securing independent coverage, Business Today reported, citing the report.
The study identifies an “activation problem” rather than an awareness gap. While young adults understand the importance of health insurance, they often view it as a purchase for their 30s or after major milestones such as marriage, rather than an immediate financial priority.
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SIPs Over Health?
Gen Z respondents showed confidence in investment decisions, with many regularly investing in mutual funds and SIPs while accepting market volatility. Yet this confidence appears weaker when it comes to insurance. The report said young investors are more likely to track visible investment returns than pay for protection whose value becomes apparent only during a medical emergency.
Digital platforms are shaping insurance awareness but not necessarily buying behaviour. Nearly 29% of respondents use financial apps to research insurance, while 26% rely on financial influencers, as per the report. Despite this research, many do not proceed to purchase policies.
The consequences could be significant. The report found that 65% of Gen Z respondents are one serious medical emergency away from financial instability. While 35% believe parental or employer coverage offers sufficient protection, others may need to rely on savings, family support, loans or liquidation of investments during a health crisis.
What the report reveals is even though young investors are emerging as strong wealth creators, actively participating in markets, they remain underinsured. Bridging this gap will require simplifying the buying process, making digital journeys strong, and encouraging earlier adoption of protection products to ensure financial growth runs parallel with financial security.
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