How to Find an Affordable Health Insurance Plan in India
With medical costs rising and post-pandemic health awareness growing in India, affordable health insurance can protect your savings from hefty hospital bills. In India, most basic health insurance plans now cover day-care procedures lasting less than 24 hours.
The lowest-cost options for health insurance, which are generally basic plans, provide essential hospitalisation coverage, a modest sum insured, and minimum add-ons. These plans are built to minimise premium cost while providing the minimum level of required healthcare coverage, such as inpatient care, pre-and-post-hospital care, and some day-care treatments.
For people without medical conditions or a history of illness, this is the most affordable way to purchase healthcare insurance while still maintaining adequate protection.
What Determines the Cost of Health Insurance?
Several things can help determine what your premium will be for the cheapest health insurance:
● Age and Health Status: The premium amount increases as you grow older by each defined band (usually every 5 years) based on your health status; younger and/or healthier people have cheaper premium costs.
● The Amount of Money Covered (Sum Insured): The amount that is being covered will determine how much the premium will be for you. Common amounts of coverage are: ₹ 1 lakh, ₹3 lakh, ₹5 lakh, ₹10 lakh, and ₹25 lakh, etc. The larger the coverage limit you choose, the more expensive your premium will be.
● Family Floater vs Individual Coverage: A family floater policy has one shared coverage limit for the entire family, while individual policies provide a separate coverage limit for each person. So, depending on the number of members and their ages, individual policies may result in a higher total premium compared to a family floater plan.
● Pre-Existing Medical Issues: If you have a pre-existing medical condition, your premium may be higher, and coverage for that condition is subject to a waiting period of up to two to four years, depending on the insurer and plan.
● Add-ons/Riders: Add-ons or riders increase your premium and provide optional additional coverage, such as critical illness, maternity benefits, room rent waiver, or other enhanced protections.
While the cheapest option might be good financially, it may not provide enough protection when you really need it.
List of Health Insurance Companies to Consider in India
Health insurance options in India vary based on cost and features, including benefits such as cashless hospitalisation, coverage limits, waiting periods, and additional features.
A digital health insurance option in India offering competitively priced plans. Basic plans may start from around ₹18 per day for young individuals, depending on age, city, sum insured, and plan selected.
Key benefits may include:
● Hospitalisation with pre & post-hospitalisation cover
● Day-care treatments
● Cashless treatment at network hospitals
● No room-rent limits on select plans
Good Option For: Young individuals and families who want budget-friendly coverage with easy online management and quick digital claims.
A standalone health insurance company offering family floater and individual health insurance plans. Premiums vary depending on age, family size, location, sum insured, and underwriting factors.
Key benefits may include:
● Hospitalisation & pre/post hospitalisation
● Day-care treatment
● Newborn coverage (as per policy terms)
● Cashless treatment in network hospitals
Good Option For: Young families and couples looking for value-oriented coverage.
Offers individual and family health insurance plans with a range of coverage options. Premiums vary based on age, location, sum insured, and underwriting factors.
Key features may include:
● Hospitalisation & surgery cover
● Pre/Post hospital expenses
● Optional riders for critical illnesses
Good Option For: Budget-focused buyers or small families looking for basic health cover.
Bajaj Allianz Health Insurance
Provides a range of individual and family health insurance plans. Premiums vary depending on age, city, sum insured, and underwriting factors.
Benefits may include:
● Hospitalisation (including day-care surgeries)
● Annual health check-ups (on select plans)
● Doctor consultation benefits (on select plans)
● Cashless treatment at network hospitals
Good Option For: First-time buyers seeking cost-effective coverage with flexible options.
Offers flexible individual and family health insurance plans. Premiums vary based on age, location, sum insured, and underwriting factors.
Key features may include:
● Hospitalisation cover
● Coverage for pre-existing diseases after completion of applicable waiting periods
● Cashless hospital network access
● Pre- and post-hospitalisation expenses
Good Option For: Individuals seeking flexibility in their core health insurance coverage.
How to Choose the Cheapest Health Insurance Wisely
There are ways to get both an affordable price and good health insurance coverage.
● How Many Network Hospital Providers are in Your Plan: A wider hospital network means that you have an easier time getting cashless treatments. Check the list of cashless hospitals through the insurer's official website or mobile application prior to purchasing insurance to be able to verify this information.
● Look for the Insurer's Claim Settlement Record: Always check the claim settlement ratio of the insurer, which will give you a clear picture of how quickly and effectively the insurer settles claims.
● Be Careful of Plans that are Too Good to be True: If a policy appears too inexpensive, it is possible that it has many exclusions, including maternity benefits, pre-existing conditions, etc. It is therefore essential to read and understand the fine print of the policy so that there are no surprises when you go to file a claim.
● Talk to a Local (Trusted) Health Insurance Agent Near You: A local health insurance agent near you can help you understand your local options and terms, so that you do not miss anything that could help select the right health insurance plan for you. Alternatively, you can also check digital insurance providers as they provide complete information in one place.
Finding the cheapest health insurance in India is more about identifying which health insurance companies offer the best plan that meets your medical needs, as well as being at the lower end of the price spectrum. Annual premiums for a basic adult health insurance plan vary depending on factors such as age, health history, location, and the level of coverage selected.
Although cost is an important consideration, the overall value of a policy is determined by how well it covers major medical risks while minimising exclusions.
