Introduction

Health Insurance is foremost important financial protection tools against high medical treatment expenses. Rising medical treatment cost, high health risk, changing lifestyle, low work life balance has impacted young Indians. In recent years we have seen young people facing range of health issues such as from cardiac arrest to mental breakdown. This has led to increase medical cost of treatment which has created huge financial burden on them. Without adequate health coverage and basic understanding of health insurance plans has created low awareness among young Indians. This low health insurance literacy has been major concern for health insurance industry.

We shall be going to understand and learn basic health insurance literacy so as to empower our self to make informed financial decision and ensure our wellbeing.

Understanding Health Insurance Literacy

Health insurance literacy refers to basic knowledge of health insurance products. This includes knowledge of coverages, benefits, premiums, claim procedure, exclusions. For young Indian health insurance may not be priority as their employer provides them group health covers. This create low level of awareness, misconceptions or misbelief regarding health claims for Individual Health Insurance.

Importance of Individual Health Insurance for Young Indians

1. Financial Protection – Health insurance shields individuals from the financial burden of unforeseen medical expenses, ensuring that hospital bills do not disrupt their financial stability.

2. Access to Quality Healthcare – Health Insurance provides access to better healthcare facilities, including cashless treatments at network hospitals.

3. Tax Benefits – Under Section 80D of the Income Tax Act, policyholders can avail tax deductions on health insurance premiums for themselves, dependent family members and their dependent parents.

4. Coverage for Critical Illnesses – Many policies covers critical illnesses that require expensive treatments, ensuring that young individuals are financially prepared.

5. Lower Premiums for Early Enrollment – Buying health insurance at a young age results in lower premiums compared to purchasing a policy later in life.

Factors Affecting Health Insurance Awareness

Despite knowing the significance of health insurance, several factors contribute to low awareness among young Indians:

1. Lack of Education on Financial Planning – Financial education should start from very early age. Schools and colleges should include health insurance awareness in their curriculum.

2. Misconceptions about Health Insurance – Many believe that insurance is unnecessary when they are young and healthy. Many young adults take health insurance after age 35 years old with their dependent family member pays premium higher rather than a person who taking health policy between ages 25-30 years old.

3. Complexity of Policies – Lengthy terms, conditions, and jargon make it difficult to understand health insurance policies.

4. Reliance on Employer-Provided Insurance – Young employees often depend on corporate health insurance, which may not offer sufficient coverage.

How to Improve Health Insurance Literacy among Young Indians

1. Incorporating Financial Education in Schools and Colleges – Introducing health insurance literacy in educational institutions will help young individuals understand its significance early in life.

2. Simplifying Health Insurance Terms – Insurers should simplify policy terms and communicate benefits in an easy-to-understand manner.

3. Leveraging Digital Platforms for Awareness   – Social media, websites, and mobile apps can provide interactive tools to educate young individuals on health insurance.

4. Employer-Led Awareness Programs– Companies should conduct workshops on health insurance benefits, ensuring employees make informed decisions.

5. Government Initiatives – The government should promote health insurance awareness through public campaigns and integrate financial literacy programs in education.

Challenges in Enhancing Health Insurance Literacy

1. Low Priority among Youth – Many young individuals prioritizes discretionary spending over financial security.

2. Information Overload – The vast number of policies available can overwhelm individuals, making it difficult to choose the right plan.

3. Lack of Reliable Guidance – Misleading information from unverified sources can create confusion about health insurance policies.

4. Reluctance to Invest in Insurance – Many view insurance as an unnecessary expense rather than a financial safety net.

Conclusion

Health insurance literacy is essential for young Indians to secure their financial future and access quality healthcare. By fostering awareness through education, simplified information, digital outreach, and government initiatives, young individuals can make informed decisions about their health coverage. Enhancing health insurance literacy will not only benefit individuals but also contribute to a financially secure and healthier society.