Health Insurance: Health insurance premiums could become costlier by 10-15% in the next 12-18 months. Experts expect companies to increase premium rates. Let's find out more about this.

Warning for health insurance buyers

Health Insurance Cost Rise: Health insurance may become more expensive in the future. This news is likely to raise some concerns for those who have health insurance policies.

Industry experts say that premiums could see a 10 to 15 percent increase over the next 12 to 18 months. Companies won't implement this increase all at once, but rather gradually at policy renewal times, so that people aren't burdened all at once.

This is how the premium will increase

According to a report in Hindustan, this increase will not be the same for everyone. Premiums may be determined based on factors such as age, customer's city, sum insured, and claim history. People living in large cities and senior citizens may be most affected by this change.

What is the reason behind this?

1. The biggest reason behind the rising cost of health insurance is the ever-increasing medical expenses. Healthcare costs in India are rising at a rate of approximately 14–15 percent annually. This is significantly higher than general inflation. Consequently, medical treatment is becoming more expensive than ever before.

2. Second, rising hospital fees, expensive tests, and increased claims after COVID have put pressure on insurance companies. Therefore, companies may increase premium rates to offset their expenses.  

Important advice for customers

1. Keep renewing the policy on time so that the cover continues uninterrupted.

2. Choose adequate cover as per your need; taking too little cover may cause problems later.

3. Avoid closing the policy; you may have to spend more out of pocket in case of a medical emergency.

Companies have increased premiums even before

Looking at the figures for the financial year 2023 to 2025, individual health policy premiums have become approximately 23 percent more expensive. Family floater plans have also become significantly more expensive. While they were around ₹15,000 in 2021, they have reached approximately ₹22,000 in 2025. This means a direct increase of approximately 46 percent.