Four in five of Indians (82%) fear rising healthcare costs and the adequacy of their insurance coverage, in case a catastrophic illness takes place in the family, according to the findings of a new survey.
The findings of the survey conducted by Aditya Birla Sun Life Insurance, released in February 2026, point out that rising pollution levels, consequential poor health and adequacy of health insurance covers are major areas of concern for the majority of the participants in the survey.
The data collected and collated in the survey were validated by Drshti Strategic Research Services, which maps perceptions of health, risk, and financial security across urban and semi-urban households.
The survey conducted across India found that a large majority of Indians see healthcare costs as a major threat to their financial future, highlighting deep anxieties around medical inflation, emergency preparedness, and environmental health risks.
With regard to rising medical costs, the top concerns of the respondents were hospital bills, treatment costs, and long-term medical inflation. The respondents’ main worry is that rising healthcare expenses will become a major and serious challenge in the future.
An equal percentage of respondents also fear sudden medical emergencies. This revealed that health shocks are no longer seen as rare events but as likely financial disruptions that can strain household budgets.
The findings imply that despite growing awareness about health risks and the rising number of Indians buying health insurance, overall preparedness remains weak. Nearly 79% of Indians are unsure whether their existing insurance cover would adequately protect them against a serious illness or not.
This uncertainty means many families may still depend on personal savings or emergency borrowing during medical crises, potentially derailing long-term financial goals. Financial buffers appear fragile. Around 80% of respondents lack confidence in their emergency savings, suggesting that even short hospital stays could create significant financial stress for many households.
Financial planners said these findings highlight the need for dedicated medical emergency funds separate from regular savings.
The survey findings also revealed that 81% of respondents believe pollution will worsen, and many link this directly to higher future medical costs and increased health risks. Industry experts, however, said that this aspect will, however, lead more households to prioritise preventive healthcare, insurance covers and medical savings.
Based on the findings, the Index suggests a three-pronged approach to strengthen financial resilience:
• Upgrade health insurance to match current treatment costs, including critical illness and hospital cash riders.
• Build a dedicated medical emergency fund covering at least 6–12 months of expenses.
• Regularly review coverage as lifestyle, income, and health risks change.
Together, these steps can help families address the five key anxieties flagged by the survey — cost inflation (82%), emergency risk (82%), insurance adequacy (79%), liquidity gaps (80%), and pollution-linked health threats (81%).