According to data released by Policybazaar, nearly 90% of customers purchasing Unlimited Sum Insured (Unlimited SI) health insurance plans are below the age of 45, with Millennials accounting for 57% of purchases and Gen Z contributing more than 30% in FY27.
The data points to a broader shift in India’s health insurance market, where younger consumers are moving beyond traditional ₹5 lakh or ₹10 lakh covers and opting for comprehensive protection plans.
Policybazaar’s data also showed that adoption of Unlimited SI plans surged from just 0.05% in FY25 to over 15% in FY27.
“What we are witnessing is a behavioural shift,” Siddharth Singhal, Business Head – Health Insurance at Policybazaar, said in a statement. “Consumers are recognising that traditional health covers may not be sufficient to keep pace with medical inflation and rising treatment costs.”
The demand is also expanding well beyond India’s largest cities.
Tier-2 and Tier-3 cities together accounted for nearly two-thirds of Unlimited SI purchases in FY27, according to the company’s data. Tier-3 India alone contributed more than 41% of total adoption, overtaking Tier-1 markets.
Cities such as Surat, Hyderabad and Mangalore recorded some of the fastest growth in average health insurance ticket sizes, indicating rising willingness among consumers to pay higher premiums for broader protection.
Experts say the shift is being driven by a combination of factors including post-pandemic awareness, rising hospitalisation expenses, increasing lifestyle diseases and easier access to insurance products through digital platforms.
The data also points to a growing preference for comprehensive protection among first-time buyers. More than 15% of new policy buyers on the platform opted for Unlimited SI plans in FY27, compared with almost negligible adoption two years earlier.
NRIs are also emerging as a significant segment. According to Policybazaar, over one in three NRI customers now choose unlimited health cover plans, primarily to secure higher protection for parents and families in India amid rising healthcare costs.
The trend comes as India’s healthcare inflation continues to outpace headline inflation, pushing consumers toward larger health covers and add-on benefits designed to reduce out-of-pocket spending.
Policybazaar’s data further showed that 90% of Unlimited SI buyers opted for consumables cover, while around 70% selected Day-1 coverage benefits, signalling increasing demand for immediate and comprehensive financial protection.
The surge in adoption could also mark a broader structural shift in India’s insurance market, where consumers are no longer gradually upgrading from ₹5 lakh or ₹10 lakh policies, but instead moving directly toward high-value or effectively unlimited coverage.
