Mental health insurance searches surge 41% as young adults and women lead the charge

The rising interest is driven by a combination of factors: the post-pandemic focus on emotional wellness, the wider availability of outpatient (OPD) benefits, and a visible decline in stigma—particularly in urban, educated circles. People are not just exploring coverage options but are also actively using them, says the Policybazaar report.

Insurers have reported a 30–50% increase in mental health claims over the past two to three years. Therapy sessions, psychiatric consultations, and prescribed medications are no longer fringe or rare claims. In fact, therapy and counselling have become some of the most common uses of OPD benefits, with many policies offering cashless services.

Leading this transformation are millennials and Gen Z, especially those in the 25–35 age group. Faced with challenges like job instability, work-life imbalance, and financial pressures, they are the most likely to search for and use mental health insurance. This group frequently claims therapy, stress counselling, and anxiety-related medications, often through digital apps and virtual therapy platforms.

Most claims relate to anxiety disorders (30–35%) and depression (25–30%), followed by workplace stress and burnout (15–20%). These are largely mild to moderate conditions, indicating increased early detection and a greater willingness to seek help. Chronic and severe disorders remain underreported, likely due to persistent stigma and underdiagnosis, per the report.

Tier 1 cities account for over half (50–55%) of all mental health insurance uptake, driven by better access to therapists, higher disposable incomes, and progressive workplace cultures that encourage mental well-being.

Siddharth Singhal, head of Health Insurance at Policybazaar, says, “Mental health is no longer an afterthought when it comes to insurance—it’s becoming a priority. Our latest data shows a remarkable 41% surge in mental health insurance searches, driven by young adults, women, and those in high-stress professions. This points to a larger societal shift where people are not only more aware of mental well-being but are actively seeking financial protection for it. With OPD benefits, cashless therapy, and wider acceptance, we’re seeing mental health move from the margins to the mainstream of healthcare planning. On an industry level and as a society, we need to keep building on this momentum by making access easier, stigma lower, and coverage stronger.”

Women are emerging as some of the strongest drivers of mental health insurance uptake. They are 27% more likely than men to choose plans with mental health benefits, and 65% opt for add-ons related to emotional and hormonal well-being. Stress, anxiety, and depression claims are notably higher among women, often tied to reproductive life stages and caregiving responsibilities, the report states further.