Gen Z’s Health Insurance Checklist: Mobile-First, Mindful, And Money-Smart

By Dinesh Mosamkar

Health insurance used to be about hospital beds, critical illness cover, and stacks of paperwork tucked away for emergencies. But for Gen Z, health isn’t something to prepare for later — it’s happening now, and their needs look nothing like those of the generations before them. 

Mobile-first Mindset

First off, if an insurance policy can’t be found, bought, and managed on a smartphone, it might as well not exist to them. This is a generation that grew up on UPI, teleconsultations, and 10-minute deliveries. More than half of Gen Z consumers in India want mobile-first, app-based insurance experiences. Call centres and branch visits just don’t make the cut anymore. They’re wired to expect simplicity, speed, and control — and anything that feels bureaucratic or slow simply gets ignored. Ease of use isn’t a bonus, it’s a basic expectation.

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Need for Better Mental Health and Affordability

Mental health is another big shift. Unlike older generations, who largely focused on chronic physical conditions like diabetes or heart disease, Gen Z has put anxiety, therapy, and burnout squarely in the middle of the conversation and with good reason. Many health plans still don’t include mental health support in their base policy, which is exactly why mental health riders or add-ons are becoming dealbreakers for this segment. This is a generation that actively talks about therapy, emotional burnout, and self-care. For them, holistic health is just as important as physical fitness. Insurance, therefore, must meet them where they are — not where previous generations were.

Then there’s the money factor.  Between rent, EMIs, side hustles, and the rising cost of living, affordability isn’t optional. It’s essential. Gen Z looks for low-cost, flexible plans that deliver maximum value. Demand for budget-friendly insurance plans in this group has jumped significantly, driven by a desire for financial security along with smarter and relevant benefits. Parents, on the other hand, tend to lean toward broader coverage despite higher premiums because their health needs, lifestyle and income levels — are different. Gen Z is financially aware, not just financially active. They want clarity in coverage, value for money, and the flexibility to upgrade or personalise their plan as their lives evolve.

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Preventive Care and Early Adoption – A Priority

Preventive care also takes the center stage. This generation doesn’t wait for things to go wrong. With health tracking apps and a growing focus on early intervention, coverage for OPD visits, annual check-ups, and diagnostics is increasingly in demand. Insurance that only pays when someone gets hospitalised? That feels outdated. What’s needed now is prevention that works before things get serious. And with diagnostics, consultations, and advanced treatments getting more expensive, Gen Z is also starting to see the value in opting for a higher sum insured — not just to cover large hospital bills, but to make room for smarter outpatient and wellness-linked features.

Another major change? How policies are chosen. Unlike earlier generations — many of whom still rely on employer-provided plans or family floaters — Gen Z is independently researching, evaluating, personalising, and purchasing on their own. And comparably at a much younger age. Early adoption means less underwriting hassle, lower chances of health-related loadings, comparatively lower premiums, access to better and high end coverages, and access to modern preventive features that weren’t even on the radar a decade ago.

In short, Gen Z is reshaping the structure of modern health insurance — and transformation that’s long overdue. They want a smarter balance of digital convenience, empathetic human support, meaningful mental health care, proactive preventive care, greater flexibility, and pricing that aligns with their financial realities. It’s no longer about getting the same policy your parents had. It’s about getting coverage that actually matches how you live today.

(The author is SVP Consumer Underwriting, TATA AIG General Insurance)

[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]

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