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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
While some customers face steep increases, the majority experience moderate inflation (as per Policybazaar):
- 95% of customers have seen premium inflation of less than 15% over a 10-year period.
- 53% of policyholders experience an inflation rate of less than 10% and continue renewing without major changes.
- Only 5% face a renewal premium hike above 30%, mostly due to age-related factors.
- Even among those receiving high renewal notices, many find ways to manage costs. According to Policybazaar, 10% of policyholders face a 30% hike, but half of them offset the increase by switching to better-featured plans.
Why are more people renewing health insurance?
Despite inflation, more customers are sticking with their health insurance. Policybazaar attributes this trend to:
- Growing awareness of rising medical costs: With healthcare expenses surging, many prefer to stay covered rather than risk out-of-pocket payments.
- Flexible plan options: Insurers are offering products that automatically increase coverage over time, helping policyholders keep up with inflation without drastic premium jumps.
- Smart cost-cutting strategies: Many customers reduce costs by choosing limited network plans, opting for deductibles, or migrating to newer plans with better benefits.
To keep insurance affordable, insurers now offer plans that increase the sum insured automatically while reducing the cost per unit of coverage. For example, Policybazaar analysed a 41-year-old customer from Delhi who purchased a family floater plan with a 7x bonus rider:
- Initial sum insured: ₹10 lakh (Premium: ₹27,276 in 2024).
- Sum insured in 2029: ₹70 lakh.
- Cost per ₹1 lakh of coverage drops from ₹2,728 in 2024 to ₹524 in 2029.
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Several insurers offer similar plans with growing coverage:
| Insurer | Plan | Sum Insured Growth |
| Care Health | Care Supreme | 7X guaranteed benefit |
| Niva Bupa | Reassure 2.0 Titanium | 10X guaranteed benefit |
| HDFC Ergo | Optima Secure | 4X coverage boost |
| ICICI Lombard | Elevate | 100% additional sum insured each year |
| Star Health | Super Star | Unlimited accumulation of sum insured |
(Source: Policybazaar)
How customers are managing premium hikes
While rising premiums are inevitable, many policyholders are controlling costs using these strategies:
Switching to new-age plans: Migrating to better plans within the same insurer helps maintain affordability.
Opting for deductibles: Lower premiums by covering a portion of medical expenses out-of-pocket.
Choosing limited network plans: Reduces premiums by up to 15% while maintaining access to quality care.
Experts suggest that reviewing policy options regularly and leveraging features like bonus-based coverage can help customers manage premium inflation while ensuring comprehensive protection.
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(Edited by : Shoma Bhattacharjee)
