As India witnesses a fresh spike in COVID-19 cases, with active cases reaching the 6,000 mark according to the Ministry of Health and Family Welfare, the focus on health and financial protection is now back in the spotlight. The pandemic may not dominate headlines like earlier, but it is creating an impact on our lives, on health insurance premiums, and is very much alive.

Whether you’re looking to renew your existing health plan or buy a new one, you may have already noticed a concerning trend: premiums are going up. While it may feel frustrating, this rise isn’t random—it’s the result of multiple factors, including the return of COVID-related claims.

In this blog, let’s explore:

  • Why health insurance premiums are rising in 2025
  • How can you smartly reduce your premium without compromising on coverage?

Why are health insurance premiums rising in 2025?

Rising COVID cases in India

Rising COVID cases in India have led to more hospitalizations and claims. New variants and long COVID issues are increasing treatment costs, putting pressure on insurers and leading to premium increases.

Increase in the medical cost

Healthcare inflation increases continuously by around 12-15% annually. The major expenses are surgeries, diagnostics,  cost of hospital stays, and medicines have gone up significantly, and insurance companies adjust premiums to keep up.

More claims post-pandemic

Even beyond the current wave, insurers are still handling claims delayed from earlier pandemic years — including postponed surgeries and chronic condition treatments — all contributing to premium increases.

Advances in medical treatments

Many cutting-edge treatments require huge costs, like targeted cancer therapies, and advanced diagnostics improve patient outcomes but come at higher costs, pushing up insurance expenses.

Broader coverage and benefits

Health insurance often provides coverage against outpatient care, mental health support, maternity benefits, and wellness programs, which add value but also increase premiums.

Demographic changes and lifestyle diseases

An aging population coupled with a rise in lifestyle diseases like diabetes, hypertension, and heart ailments increases insurers’ risk exposure, affecting premium rates.

Smart Ways to Save on Health Insurance Premiums in 2025

Rising health insurance premiums do not signify that you have to pay more. There are many smart ways to save on health insurance premiums. The good news? You can save on your health insurance premium with a few smart moves. Whether you're buying a new plan or renewing an existing one, here are practical tips to keep your premiums in check.

Invest in Health Insurance at an early age

The earlier you buy health insurance, the more will be the chances of locking in lower premiums by buying health insurance at a younger age.

Choose and compare policies before purchasing

Don’t just pick the first plan you see. Use online tools or consult a trusted health insurance agent to compare premiums, coverage, claim settlement ratio, and network hospitals across different insurers. This helps you get the best value for your money.

Prefer a family floater plan

If you are planning to buy an insurance plan for your family, consider a family floater policy instead of buying a separate individual plan. It offers shared coverage for all family members at a lower overall cost.

Opt for Top-Up Plans

Top-up or super top-up plans offer extra coverage beyond a deductible amount, often at lower premiums than raising your base sum insured.

Look out for wellness benefits in the insurance plan

Many insurers now offer discounts and reward points if you maintain a healthy lifestyle, go for regular check-ups, or track fitness activities. These wellness benefits can help reduce your renewal premiums.

Select a Higher Insurance Deductible Health Plan

If you’re financially comfortable covering small medical bills, choose a higher deductible. This means you pay a set amount out-of-pocket before the insurance kicks in, and in return, your premium is lower.

Timely Health Renewals

Avoid a lapse in your policy. If your policy lapses and you buy a new one later, your premium will likely be higher, and you may lose waiting period benefits and bonuses.

Avail of tax benefits

Under Section 80D of the Income Tax Act, you can claim up to ₹75,000 in tax deductions for health insurance premiums — ₹25,000 for self/family and ₹50,000 for senior citizen parents.

Bottom Line

Health insurance is an important financial safety net nowadays, and saving on health premiums doesn’t mean that you are cutting corners. It means being smart, proactive, and well-informed.

Need help choosing the right plan or making your policy more cost-effective? Connect with a PBPartners PoSP advisor today — and take a confident step toward protecting your health and savings. Start early. Choose wisely. Stay healthy. And review your policy every year.