As healthcare costs continue to rise, a section of the policyholders are now seeking greater protection against frequent premium revisions by switching over to long-term health insurance policies.

“The gradual rise in consumer interest in long-term insurance coverages has been notable, especially those covers that run for between three to five years,’’ Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI) told businessline. 

While health cover policies generally come with a tenure of one year, with a view to promote innovation and cater to diverse needs of the people, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed long-term health insurance products under the existing regulatory structure subjected to adherence to the product approvals, underwriting guidelines, and other norms by the insurers.

There are several reasons behind this phenomenon. First, high inflation in healthcare expenses and hospital stays are pushing customers towards securing their health insurance policy for a prolonged period.

“Further, the consumers are becoming increasingly aware of the importance of health insurance coverage without any breakage periods. Other reasons include technological advancements, product awareness, wellness health insurance policies, and the growing emphasis on preventative health care services,’’ Bharindwal said. 

According to the Head of Underwriting at a leading insurance company, uninterrupted coverage under long-term health insurance policies is emerging as a key attraction for policyholders as it eliminates the need for annual renewals and lowers the risk of policy lapses.

“Besides sparing customers the hassle of yearly renewals, such policies offer greater peace of mind through premium stability over the policy tenure, continuity benefits such as the carry-forward of waiting periods already served, and reduced administrative burden, the executive said.

The growing demand for long-term cover is also reflecting in the insurance premium finance business. “The insurance premium finance portfolio is dominated by long-term policies, which account for 70-75 per cent of the business, indicating that the demand for these policies is increasing,’’ Hanut Mehta, Co-Founder and CEO, BimaPay Finsure said. Those who are in the 30-45 years age bracket are showing a greater predilection to buy long term cover. 

The trend is likely to catch up futher going forward, according to Bharindwal, who added: “However, it should be noted that annual policies still form the bulk of most market segments while consumer awareness continues to grow.’’

According to IRDAI data, health insurance segment remained the principal growth driver for the non-life insurance industry in FY2025-26, with gross health premiums rising 15.6 per cent year-on-year to ₹1.37 lakh crore, up from ₹1.19 lakh crore in FY2024-25.

Published on June 14, 2026