Health Insurance for Low Salary in India: Should You Buy It? Complete Truth (2026 Guide)
Yes. Even on a low salary in India, buying basic health insurance is usually worth it. A government scheme or an affordable family floater can protect you from hospital bills that may otherwise push you into debt.
If you’re earning a low salary in India, you’ve probably asked yourself this question at least once:
“Should I really spend money on health insurance when every rupee already feels tight?”
That doubt is completely normal. When income is limited, priorities like rent, food, EMIs, children’s education, and daily expenses come first. Insurance often feels like something only “high earners” can afford. But here’s the honest truth — medical emergencies don’t check your salary before arriving.
Even today, a basic health insurance plan can cost less than your monthly mobile bill, yet protect you from hospital bills that can easily run into lakhs of rupees. One accident, sudden illness, or surgery is enough to wipe out years of savings for a low-income household.
This guide is written specifically for people with low or modest salaries in India — not sales talk, not complicated jargon, and not unrealistic advice. I’ll explain whether health insurance is actually worth it for you, what type of cover makes sense on a tight budget, and how to stay protected without stressing your monthly finances.
If you qualify for a government health scheme, I’ll show you how to use it wisely. If you’re considering a low-cost family floater or a basic private plan with a top-up, I’ll break down what truly matters — cashless hospitalisation, realistic coverage, and nearby network hospitals — and what you can safely skip.
And if you genuinely cannot afford a premium right now, this guide won’t judge you. Instead, I’ll share practical alternatives to help you prepare for medical expenses until insurance becomes possible.
By the end of this article, you’ll have a clear, calm answer — not fear-based pressure — about whether health insurance is right for your current income, and exactly how to move forward with confidence.
1. The Simple Truth: Why Health Insurance Matters (Especially on a Low Salary)
If your salary is low, one thing is certain: medical expenses can hurt you harder than most other financial problems.
You can plan for rent, groceries, school fees, and EMIs — but you can’t plan the exact day an illness, accident, or emergency will strike.
For someone earning a modest income, a single hospital stay or surgery is often enough to wipe out months or even years of savings. This is where health insurance plays its real role. It doesn’t make healthcare free — but it shields you from financial damage that can push you into long-term debt.
Think of health insurance as a way to transfer a big, unpredictable risk from your pocket to an insurer, in exchange for a small, predictable cost you can plan for: the premium.
What difference does health insurance actually make?
Here’s how it helps in real life:
Financial protection:Hospital bills, doctor fees, tests, ICU charges, and surgery costs are mostly covered. For low-salary earners, this can be the difference between staying stable and falling into debt.
Access to better care:With cashless hospitalisation, you don’t have to delay treatment or run around arranging money at the worst possible time.
Mental peace:Knowing that one emergency won’t destroy everything you’ve built reduces stress and helps you plan your future with confidence.
Let’s compare two simple, realistic situations
Without health insurance:
You earn a modest salary. A family member suddenly needs surgery costing ₹1,00,000.
Without insurance, your options are painful:
use up savings, borrow at high interest, ask relatives for help, or sell something valuable. That one medical bill can follow you for years as debt.
With health insurance:
You pay a relatively small annual premium — say ₹6,000–₹10,000, depending on your age and plan.
When the same surgery happens, the insurance covers most (or sometimes all) of the ₹1,00,000 bill. You may pay a small co-pay or deductible, but your savings stay intact and you avoid expensive loans.
For people with low salaries, the real question is not whether health insurance is useful — it almost always is.
The real question is: Can you find a plan that gives meaningful protection without stretching your monthly budget too far?
That’s exactly what the rest of this guide is designed to help you do — step by step, honestly, and without unnecessary pressure.
2. Common Myths That Stop People from Buying Health Insurance
Most people don’t avoid health insurance because they don’t care about their family.
They avoid it because of confusion, fear, and half-truths they’ve heard from others.
Let’s clear the biggest myths — calmly and honestly.
Myth 1: “Health insurance is useless. Claims always get rejected.”
This is one of the most common fears — and also one of the most misunderstood.
Yes, some claims do get rejected. But in most cases, it happens because of non-disclosure, incorrect paperwork, or misunderstanding policy terms.
If you:
- choose a reputable insurer,
- declare pre-existing conditions honestly, and
- understand waiting periods, co-pay, and exclusions,
the chances of rejection drop significantly. Insurance isn’t useless — using it incorrectly makes it feel that way.
Myth 2: “I’m healthy right now. I don’t need insurance.”
Being healthy is great — but it’s not a guarantee.
Accidents, infections, appendicitis, dengue, fractures, and sudden surgeries don’t ask about your fitness level.
Health insurance is not about predicting illness.
It’s about protecting yourself before something unexpected happens, when insurance is still affordable and easy to get.
Myth 3: “It’s better to save the premium and self-insure.”
Saving money is a smart habit — but let’s be realistic.
Even if you save ₹500–₹1,000 every month, it can take years to build an amount that covers a major hospital bill.
Insurance works because it spreads risk across thousands of people.
Your small premium buys you access to a much larger safety net — something personal savings alone can rarely match during an emergency.
Myth 4: “Government health schemes are always enough.”
Government health programmes are extremely helpful — and if you’re eligible, you should absolutely enrol.
But many schemes have limitations:
- restricted hospital networks
- caps on treatment costs
- long waiting periods
- exclusions for certain procedures
For many families, a combination of government cover + affordable private insurance provides better real-world protection than relying on just one option.
The real takeaway
Most disappointment with health insurance doesn’t come from the concept — it comes from not understanding how policies actually work.
When you know about:
- waiting periods
- co-pay and deductibles
- room rent limits and sub-limits
- permanent exclusions
you can choose smarter plans and avoid unpleasant surprises later.
Understanding these basics puts control back in your hands — and helps you use health insurance as a tool for protection, not frustration.
3. Types of Health Insurance You Should Consider (And Which One Makes Sense on a Low Salary)
Not all health insurance plans work the same way — and when your salary is limited, choosing the wrong type can waste money without giving real protection.
Let’s break down the main options in simple terms, so you know what’s worth paying for and what isn’t.
Individual Health Insurance
This plan covers only one person under a fixed sum insured.
- Premium depends on age, health condition, and coverage amount
- Works well if you’re single or just starting out
- Costs more if you later buy separate policies for each family member
👉 Good choice if: you’re young, single, and want basic personal protection.
Family Floater Health Insurance
One policy covers your entire family under a single sum insured.
- Usually cheaper than buying multiple individual plans
- Flexible and practical for young families
- Everyone shares the same coverage pool
👉 Best value option for low-income households, especially couples with children.
Group Health Insurance (Through Employer)
Many employers provide basic health cover as part of the job.
- Premium is low or free
- Easy enrollment, no medical tests
- Coverage usually ends if you leave the job
👉 Always use this if available, but don’t depend on it alone — check limits and consider a personal top-up.
Government & Subsidised Health Schemes
If your income is low, this should be your first check.
- Free or heavily subsidised
- Covers major hospitalisation expenses
- Limited hospital networks and coverage caps may apply
A well-known example is Ayushman Bharat – PM-JAY, along with various state-level schemes.
👉 Ideal as base protection, especially if private premiums feel unaffordable.
Top-Up / Super Top-Up Plans
These plans activate only after a certain expense threshold is crossed.
- Very affordable premiums
- Designed to sit on top of a base policy or government scheme
- Not useful alone — needs primary cover first
👉 Smart option to increase coverage cheaply once you have basic protection.
So, what works best on a low salary?
For most low-income earners, the best cost-benefit combination is:
✔ Enrol in a government health scheme (if eligible)
✔ Add a low-cost family floater or base private plan
✔ Use a top-up plan to increase coverage without raising premiums too much
This layered approach gives you real protection without financial stress — exactly what health insurance should do.
4. Types of Health Insurance for Low Salary in India (Quick Comparison)
If your income is limited, choosing the right type of health insurance matters more than choosing a famous brand.
Each option below serves a different purpose — some focus on free basic protection, while others offer better flexibility at a small cost.
The table will help you quickly understand what each option costs, who it’s best for, and where it falls short, so you can decide smartly instead of guessing.
Option | Cost Level | Best For | Main Limitation |
|---|---|---|---|
Government Scheme (PM-JAY) | Free | Very low-income households | Limited hospital network, coverage caps |
Family Floater Plan | Low | Small families | Shared sum insured |
Base Plan + Top-Up | Medium | Budget planners | Needs basic planning |
Employer Group Insurance | Free / Low | Salaried employees | Ends when job ends |
How to Use This Table
- If your income is very low, begin with a government health scheme.
- If you have a small family, a family floater usually offers the best value.
- If you want higher coverage without a high premium, combine a base plan with a top-up.
- If your employer provides insurance, use it as a foundation, not your only protection.
👉 For most low-salary earners, the smartest approach is a combination of options rather than relying on just one plan.
📍 Exact Placement (SEO Best Practice)
Add this entire section immediately after Section 3: “Types of Health Insurance You Should Consider.”
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“The table below shows the most practical health insurance options for low-salary earners in India, along with their cost, suitability, and limitations.”
5. Government & Subsidised Health Insurance Options (What You Must Check First)
If your salary is low, private insurance should not be your first stop.
The smartest move is to check government and subsidised health insurance schemes first, because many of them are free or heavily discounted and designed exactly for people with limited income.
In India, schemes like Ayushman Bharat – PM-JAY and various state-level programmes can provide strong basic protection — if you understand how to use them properly.
Here’s what you should carefully check before relying on any government health scheme:
1. Eligibility (Don’t assume — confirm)
Most government schemes are meant for:
- low-income or economically weaker households
- people without employer health insurance
- specific job categories or social groups
Eligibility rules vary by scheme and state.
👉 Always verify through official portals, local health offices, or authorised centres, not hearsay.
2. Coverage limits (Know the real cap)
Government plans usually focus on major hospitalisation, but:
- there may be annual limits (for example, ₹5 lakh per family per year)
- certain treatments or procedures may be excluded
- pre- and post-hospitalisation expenses may be limited or not covered
👉 Knowing these limits helps you avoid surprises at the hospital.
3. Network hospitals (This decides real usefulness)
A scheme is only useful if you can actually use it.
Check:
- which hospitals near your home offer cashless treatment
- whether private hospitals are included or only government ones
- how far the nearest network hospital is
If the nearest hospital is too far, the practical value of the scheme drops sharply during emergencies.
4. Portability (Important for migrants & job changes)
Some government schemes are portable across states, while others are not.
If you:
- work in another state
- frequently move for jobs
- live away from your registered address
👉 Portability becomes a critical factor.
How to use government schemes wisely (practical approach)
If you’re eligible, the smartest strategy is not “either–or”, but “layered protection”:
- Enroll in the government scheme you qualify for
- Use it as your primary/base cover
- If your budget allows, add:
- a low-cost private family floater, or
- a top-up / super top-up plan
This way:
- government cover handles major costs
- private insurance fills the gaps
- your total premium stays much lower than buying an expensive private policy alone
Why this approach works best on a low salary
Government schemes reduce your biggest risk at little or no cost.
A small private plan on top adds flexibility, hospital choice, and higher coverage.
Together, they give you near-comprehensive protection without financial pressure — exactly what someone on a tight budget need.
6. How to Buy Health Insurance on a Low Salary — A Practical Step-by-Step Guide
When your income is limited, buying health insurance can feel confusing — even intimidating.
But the truth is, you don’t need a perfect or expensive policy to start. You just need a sensible plan that fits your current reality.
Here’s a simple, no-pressure playbook you can follow today.
Step 1 — Know your real budget (be honest with yourself)
Start by deciding how much you can reliably set aside each month — without stress.
Think of insurance like rent: consistency matters more than size.
Even ₹400–₹800 per month (₹4,800–₹9,600 per year) can get you a basic but meaningful cover, especially if you’re young and healthy.
👉 Don’t overcommit. A policy you can’t renew later is worse than a modest one you can sustain.
Step 2 — List who actually needs to be covered
Ask yourself:
- Only you?
- You + spouse?
- Children?
- Parents?
Covering parents significantly increases premiums.
If money is tight, it’s often smarter to start with yourself, spouse, and children, and plan separate solutions for parents later.
👉 Start small. You can always expand coverage as income improves.
Step 3 — Separate must-have features from nice-to-have
When budget is limited, priorities matter.
Must-have (don’t compromise):
- In-patient hospitalisation
- Cashless treatment
- Surgery and ICU charges
- Diagnostics linked to hospitalisation
Nice-to-have (adds cost):
- Maternity cover
- Dental and OPD
- Vision care
- Luxury room rent limits
👉 Focus on hospital bills first. Extras can wait.
Step 4 — Strongly consider a family floater
For young families, a family floater often gives the best value.
Example:
A ₹5–7 lakh family floater for a young couple with one child usually costs much less than buying three separate individual policies.
👉 One pool, lower premium, better flexibility.
Step 5 — Be smart about waiting periods & pre-existing conditions
If you have a pre-existing condition:
- premiums may be higher
- waiting periods (usually 2–4 years) apply
Always declare health conditions honestly.
Hiding information may reduce premium today, but it can cancel your claim when you need it most.
👉 If you’re young and healthy, buy early — you’ll lock in better rates.
Step 6 — Compare online (never buy the first plan you see)
Use comparison websites to shortlist 3–5 plans.
Focus on:
- cashless hospital network near you
- claim settlement reputation
- customer reviews (especially claim experiences)
👉 Cheapest is not always best. Reliable claims matter more than ₹500 savings.
Step 7 — Use deductibles or co-pay to reduce premium
If budget is tight:
- choose a higher deductible (e.g. ₹25,000), or
- accept a small co-pay
This reduces annual premium but means you’ll pay a bit during claims.
👉 Good option if you want higher coverage at a lower cost.
Step 8 — Watch out for sub-limits and room rent caps
Some low-cost policies quietly include:
- per-day room rent limits
- caps on specific surgeries
These can cause unexpected out-of-pocket expenses, even with insurance.
👉 Prefer plans with minimal sub-limits, even if premium is slightly higher.
Step 9 — Check how easy claims actually are
A cheap policy with a painful claim process is not worth it.
Before buying:
- check cashless claim process
- read reviews about claim support
- see if customer service is responsive
👉 Stress during a medical emergency is already enough — don’t add more.
Step 10 — Reassess and upgrade every year
Your first policy doesn’t have to be perfect.
As your income grows:
- increase sum insured
- add family members
- buy a top-up plan
Before renewal:
- compare current market options
- use portability if needed
- apply loyalty or no-claim bonuses
👉 Health insurance is a journey, not a one-time decision.
7. Choosing the Right Health Insurance Cover — What to Prioritise When Money Is Tight
When your budget is limited, you can’t afford to pay for features that look good on paper but don’t help during a real hospital emergency.
The goal isn’t to buy the “best” policy — it’s to buy the right one for your situation.
Here’s exactly what deserves your money first, and what can wait.
1) Sum insured — keep it realistic, not perfect
Your sum insured should reflect actual hospital costs in your city, not just the cheapest option available.
- For a single person, ₹3–5 lakh is a sensible minimum in most cities
- For families, ₹5–7 lakh as a family floater works well for basic protection
- If your budget only allows ₹2 lakh, don’t panic — pair it with a top-up plan
👉 A smaller base cover + top-up is often smarter than no insurance at all.
2) Cashless hospital network — this decides real usability
Insurance is most useful when you don’t have to arrange cash in an emergency.
Before buying, check:
- hospitals near your home or workplace
- whether emergency and ICU admissions are cashless
- private vs government hospital availability
👉 A strong local network saves time, stress, and upfront payments.
3) In-patient coverage (IPD) — the non-negotiable core
This is the heart of any health insurance policy.
Make sure it covers:
- hospitalisation expenses
- surgeon and doctor fees
- ICU charges and implants
- diagnostics done during admission
👉 If a policy is weak here, nothing else matters.
4) Waiting periods & exclusions — read this carefully
Every policy has waiting periods.
- Pre-existing diseases: usually 2–4 years
- Maternity benefits: often 2–4 years
- Some procedures may be permanently excluded
👉 Always check exclusions for treatments you might realistically need.
5) Co-pay and deductibles — useful tools if used wisely
To reduce premiums:
- you may accept a co-pay (10–20% per claim), or
- choose a deductible amount
This lowers annual cost but means paying a bit during claims.
👉 Good option if you don’t expect frequent hospital visits.
6) No-Claim Bonus (NCB) — think long term
Many insurers reward you for not making claims by:
- increasing your sum insured
- without raising your premium
👉 Over time, this quietly improves your coverage without extra cost.
7) Ease of claim settlement — don’t ignore this
A cheaper policy with poor claim support can cost you more emotionally and financially.
Before finalising:
- check claim settlement reputation
- read real user reviews
- understand common exclusions like cosmetic procedures, self-inflicted injuries, or substance-related treatments
👉 Smooth claims matter more than small premium savings.
8) Add-ons (riders) — buy only if they truly help
Riders can increase premium quickly.
Only consider them if:
- they solve a real need (like critical illness cover), and
- the extra cost comfortably fits your budget
👉 Skip fancy add-ons until your core protection is strong.
Final rule to remember
When in doubt, always prioritise:
- Sum insured
- Cashless hospital network
- Strong in-patient coverage
Extras like dental, OPD, or luxury benefits should come only after these basics are secure — and only if they’re affordable.
8. How to Reduce Your Health Insurance Premium — Without Losing Core Protection
If the price of health insurance is the main thing holding you back, don’t assume you need to give up protection altogether.
In most cases, you can lower your premium smartly — without weakening the coverage that actually matters during a hospital emergency.
Here are proven, practical ways to do exactly that.
1) Choose a family floater instead of multiple individual plans
For couples and young families, a family floater is almost always more cost-effective.
- One shared sum insured
- One premium instead of many
- Lower total cost for the same level of protection
👉 This alone can reduce your premium noticeably.
2) Use deductibles or co-pay (only if budget is tight)
If you’re okay paying a little during a claim:
- choose a higher deductible, or
- accept a small co-pay
This reduces your annual premium, while keeping high overall coverage.
👉 Good option if you don’t expect frequent hospital visits.
3) Combine a lower base cover with a super top-up
Instead of buying a large, expensive base policy:
- take a smaller base sum insured, and
- add a super top-up plan
Top-ups are very affordable and kick in only after a threshold.
👉 This is one of the best tricks for low-salary earners.
4) Skip unnecessary add-ons
Many add-ons look attractive but quietly raise your premium.
Usually safe to skip at the start:
- dental cover
- vision care
- OPD benefits
- luxury room upgrades
👉 Focus your money on hospitalisation, not extras.
5) Buy online whenever possible
Buying directly online often gives:
- lower premiums
- fewer agent commissions
- occasional web-only discounts
👉 Same coverage, less cost.
6) Pay annually instead of monthly
Some insurers charge extra for monthly EMIs.
- Annual payment = small discount
- Fewer chances of missed payments
👉 If possible, pay once a year and forget about it.
7) Maintain a healthy lifestyle (it actually helps)
Some insurers reward:
- non-smokers
- healthy BMI
- wellness programme participation
This can mean:
- lower premiums
- extra benefits over time
👉 Small habits can reduce long-term costs.
8) Use employer group cover as your base
If your job provides group health insurance:
- use it as primary cover
- add a small private top-up for extra safety
👉 This gives strong coverage at a very low personal cost.
9) Compare and port at renewal
Don’t stay loyal blindly.
Before renewal:
- compare new plans
- check if another insurer offers better value
- port your policy to keep waiting-period benefits
👉 Portability helps you upgrade without starting from zero.
Why these small savings matter
Saving even ₹1,000–₹2,000 per year on premium can:
- allow you to choose a higher deductible
- fund a top-up plan
- build a small emergency health fund
Over time, these small decisions add up to much stronger protection.
Bottom line
Reducing premium doesn’t mean reducing safety.
It means spending wisely on what actually protects you — and cutting what doesn’t.
9. Real-Life Scenarios & Short Case Studies (What Actually Happens on a Low Salary)
Understanding insurance in theory is useful, but real clarity comes from real-life situations.
The examples below show how health insurance actually works for people earning modest incomes — not ideal cases, but realistic ones.
Case A — Ravi (28), Monthly Salary ₹18,000
After getting married, Ravi bought a ₹5 lakh family floater that covered him and his wife.
Annual premium: around ₹6,800.
Two years later, Ravi needed emergency appendicitis surgery.
Total hospital bill: ₹1.2 lakh.
- The claim was processed cashlessly
- Ravi paid only a small co-pay
- His savings remained untouched
👉 Outcome: A basic, affordable policy saved Ravi from taking loans or falling into debt.
Case B — Meera (35), Small-Business Owner, Income Unstable
Meera hesitated to buy private insurance because her income was irregular.
Instead of doing nothing, she took a practical route:
- Enrolled in a government health scheme as primary cover
- Added a ₹3 lakh private floater/top-up on top
When her father was hospitalised:
- The government scheme covered most expenses
- The private plan covered costs above the government limit
👉 Outcome: Together, both covers provided near-complete protection at a manageable cost.
Case C — Suresh (40), Salary ₹12,000/month, Supporting Parents
Suresh wanted to insure his parents, but the premiums were too high for his income.
So he:
- Bought a minimal policy for himself first
- Used savings and negotiated hospital bills for his parents
- Planned to upgrade coverage later as income improved
👉 Outcome: Not perfect — but far better than having no protection at all.
Key lessons from these real cases
These situations highlight some important truths:
- Start where you can — waiting for the “perfect” policy often means staying unprotected
- If family coverage is too expensive, secure yourself first
- A government scheme + private top-up is a very practical combination
- Gradual upgrades work better than delaying insurance completely
Health insurance is not a one-time decision.
It’s a step-by-step journey that can grow as your income grows.
10. When Health Insurance Might Not Make Sense — And What to Do Instead
Health insurance is usually a smart decision — even on a low salary.
But honesty matters. There are a few rare situations where buying a private policy right now may not be the best move.
When buying a policy may not be practical today
1) You have no emergency cash at all
If you don’t have even a small buffer and paying a premium means missing rent, food, or essential bills, the risk is that the policy may lapse. A lapsed policy gives you no protection and wastes the money you paid.
2) You have serious pre-existing conditions with very high premiums
If insurers quote extremely high premiums or long waiting periods because of major pre-existing illnesses, it may be more practical to pause private insurance temporarily while you explore other options.
This is not failure — it’s strategic timing.
What to do instead (smart, realistic alternatives)
If you’re in one of the situations above, don’t ignore health risks. Do this instead:
1) Build a small emergency health fund
Start with a modest target — even ₹5,000 to ₹20,000.
This fund can help with:
- medicines
- tests
- small hospital deposits
It’s not a replacement for insurance, but it buys you time.
2) Enrol in any eligible government or community scheme
If you qualify for a government or subsidised health scheme, enrol immediately.
Even limited coverage is far better than having no protection during a major illness or accident.
3) Plan to buy insurance as soon as your situation improves
Make insurance a short-term goal, not a distant dream.
This could mean:
- a small increase in income
- clearing one EMI
- stabilising monthly expenses
As soon as premiums become manageable, buy a basic plan and start the clock on waiting periods.
The most important warning: don’t do nothing forever
Delaying insurance for a short time can be sensible.
Avoiding it completely is risky.
Even basic, low-cost protection, when chosen carefully, is far better than facing a medical emergency with no safety net at all.
11. Step-by-Step Checklist to Buy Health Insurance (Low-Salary Friendly)
Use this simple checklist before you buy any health insurance policy.
It helps you avoid common mistakes and ensures you get real protection, not just a cheap document.
Health Insurance Buying Checklist
✔ Decide the monthly premium you can comfortably afford
Choose an amount you can pay every month or year without stress or missed payments.
✔ Check government health schemes first
If you’re eligible, enrol immediately and treat it as your base protection.
✔ Shortlist at least 3 insurers online
Use trusted comparison websites to review plans side by side.
✔ Confirm nearby cashless hospitals
Make sure good hospitals near your home or workplace are in the insurer’s network.
✔ Choose a realistic sum insured
- ₹3–5 lakh for individuals
- ₹5–7 lakh for families (floater)
✔ Review waiting periods, sub-limits, and room rent caps
These details affect how much you actually pay during a claim.
✔ Consider a deductible or co-pay to reduce premium
Acceptable if it helps you afford higher coverage at a lower cost.
✔ Read the policy wording carefully
Pay special attention to exclusions and permanently excluded treatments.
✔ Buy online and pay annually if possible
Online purchases often cost less, and annual payment may include discounts.
✔ Save all policy documents and claim contacts
Keep digital copies and note down emergency claim helpline numbers.
Final tip
A policy that is understood, affordable, and renewable is far better than a perfect plan you can’t maintain.
12. A Simple Script to Talk to an Insurance Agent (Use This Exactly)
Many people feel uncomfortable talking to insurance agents because the conversation quickly becomes confusing or sales driven.
Using a clear script keeps the discussion focused on your needs, not theirs.
You can copy, paste, or read the script below when calling or chatting with an insurer.
Script: What to Say to an Insurance Agent
Hi, I’m looking for an affordable health insurance plan.
My total budget is ₹[insert amount] per year.These are my requirements:
• Cashless treatment at hospitals near [your city/town]
• Sum insured of about ₹[3–5 lakh] for an individual
or ₹ [5–7 lakh] as a family floater• No strict room rent or ICU sub-limits• I’m open to a deductible of ₹ [insert amount] if it reduces the premium
• Please clearly explain:
– Total annual premium
– Waiting periods for pre-existing conditions and maternity
– How the claim process works (cashless and reimbursement)I’d like to compare this with other options before deciding.
How to use this script effectively
- Keep the numbers inside brackets exact — don’t leave them vague
- Don’t let the agent push add-ons you didn’t ask for
- If answers feel unclear, pause and compare with another insurer
Why this script works
- Sets budget boundaries early
- Signals that you are informed and serious
- Prevents unnecessary upselling
- Helps you compare plans objectively
13. Frequently Asked Questions (FAQs)
Q1: How much health insurance premium will I pay on a low salary?
Premium depends on factors like age, health condition, city, sum insured, and family size.
For younger adults with no pre-existing conditions, a ₹5 lakh health insurance plan can cost roughly ₹5,000–₹12,000 per year, depending on the insurer and optional add-ons.
Q2: Can I buy a policy just for myself and add family members later?
Yes. Many people start with individual health insurance and add family members at renewal.
Keep in mind that adding older parents later is usually much more expensive, so plan for that in advance if possible.
Q3: Are maternity and pre-existing disease covers available on low premiums?
Maternity cover almost always comes with long waiting periods (usually 2–4 years) and increases the premium.
Pre-existing diseases also involve waiting periods and higher costs. If your budget is tight, it’s often better to defer maternity add-ons until your finances improve.
Q4: What is the difference between co-pay and deductible?
- A deductible is a fixed amount you pay before the insurer starts paying (per claim or per year).
- A co-pay is a percentage of the claim amount that you pay every time you make a claim.
Both reduce premiums but increase out-of-pocket expenses during claims.
Q5: How can I check an insurer’s claim settlement record?
You can review claim settlement ratios published by insurance regulators and read customer reviews on trusted platforms.
Higher ratios and positive claim-related feedback usually indicate a smoother claim experience.
Q6: What if I have a chronic or pre-existing medical condition?
Expect higher premiums and waiting periods. In such cases, consider:
- enrolling in government health schemes
- choosing policies that accept chronic conditions
- building a medical emergency fund while gradually improving coverage
Q7: Is employer-provided group insurance enough?
Employer group insurance is valuable but often limited in coverage and ends when the job ends.
Use it as base protection and consider buying a personal top-up policy, especially if you need family coverage.
Q8: Can I switch or port my health insurance policy to another insurer?
Yes. Policy portability allows you to change insurers without losing waiting-period benefits.
Start the porting process before renewal to avoid any break in coverage.
14. Final Verdict — My Honest Recommendation for You
If you’re earning a low salary, buying some form of health insurance is usually a smart and responsible decision. You don’t need an expensive or perfect policy to be protected. What matters is starting small, practical, and sustainable.
If you’re eligible for a government health scheme, use it as your foundation. Then, if your budget allows, add a low-cost family floater or a basic private plan with a top-up. This layered approach gives you meaningful protection without putting pressure on your monthly finances.
When choosing a policy, focus on the basics first:
- In-patient hospitalisation cover
- A realistic sum insured
- Access to nearby cashless hospitals
Avoid paying extra for add-ons and luxury features until your core protection is secure.
If you truly cannot afford a premium right now, don’t ignore the risk — manage it wisely. Start by building a small emergency health fund (aim for ₹5,000–₹20,000), enrol in any government or community coverage you qualify for, and make a clear plan to buy private insurance as soon as your financial situation improves.
Medical emergencies are unpredictable, and for someone on a low income, one hospital bill can wipe out years of savings. Preparing early — even in a limited way — is far safer than hoping nothing will happen.
This Week’s Simple Action
Compare at least three health insurance plans on a trusted comparison website.
Note down the cheapest quote, then evaluate it for:
- coverage quality
- hospital network
- claim process
The goal is not to buy the lowest-priced plan, but the one that offers the best real protection for your budget.
This guide is based on real-world healthcare cost analysis, insurance claim experiences, and patient advocacy insights in India. It is written to help families make safer medical and financial decisions — not to sell insurance.
Recommended Reading:
Healthcare Costs Explained: How to Save Money on Medical Bills
👉 https://www.inspirehealthedu.com/2025/12/healthcare-costs-explained-how-to.html
Health Insurance Plans in India: Compare & Choose the Best Option
👉 https://www.inspirehealthedu.com/2025/10/health-insurance-plans-in-india-compare.html
If this guide helped you make a clearer decision, consider sharing it with someone who earns a modest income and may be confused about health insurance.
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