If you are looking for low cost health insurance in India, there are more options in 2026 than a few years ago. Free government cover now reaches many families and every citizen aged 70 and over, individual policies no longer carry GST, and insurance rules have changed in favour of buyers. This guide explains where to look for affordable cover, how to lower the premium on a private policy without leaving gaps, and what to check before you buy. It is general information, not financial advice, so always read the policy wording and ask the insurer about anything that is unclear.
Table of Contents
Quick Summary
| Option | Cost to you | Best for |
|---|---|---|
| Ayushman Bharat PM JAY | Free if eligible | Eligible low income families and everyone aged 70 and over |
| State government health schemes | Free or low cost | Residents who meet state rules |
| Employer group cover | Often free or shared | Salaried staff and their families |
| Family floater policy | One premium for the family | Young families |
| Top up or super top up | Low premium for high cover | People who already have a base policy |
Start With Free Government Cover
Before paying for a policy, check if your family already qualifies for public cover.
Ayushman Bharat PM JAY gives eligible families cover of up to Rs 5 lakh a year for hospital treatment at empanelled public and private hospitals. Eligibility for most families is based on official lists. Since October 2024 every citizen aged 70 or above can join, whatever the family income. You can check eligibility through the official PM JAY portal, the Ayushman app or a nearby empanelled hospital or Common Service Centre.
State schemes often add to or extend PM JAY. Many states run their own health schemes with different limits and rules, so check the website of your state health department.
Employer cover is another starting point. If you work for a company, find out how much cover its group policy gives and whether parents or spouse can be added.
Government and employer cover is valuable, but it may not be enough on its own. Employer cover ends when you leave the job, and public schemes work only at listed hospitals. That is why many people also keep a personal policy.
Why Private Health Insurance Costs Less in 2026
Two changes have made personal policies cheaper or easier to buy.
- No GST on individual policies. From 22 September 2025, individual health insurance policies, including family floaters, are exempt from GST. Earlier, buyers paid 18% GST on the premium. Group policies, such as those bought by employers, still carry 18%.
- Buyer friendly IRDAI rules. In 2024 the insurance regulator removed the upper age limit for buying health insurance, capped the waiting period for pre existing diseases at 36 months, and reduced the moratorium period to 60 months. After 60 months of continuous cover, a claim cannot be refused on the grounds of non disclosure, except in cases of proven fraud.
Smart Ways to Lower Your Premium
Buy early
Premiums rise with age and with health conditions. Buying when you are young and healthy usually gets a lower premium, and waiting periods finish sooner, so you are fully covered by the time you are more likely to need it.
Choose a family floater
A family floater covers the whole family under one sum insured. For a young couple with children, this usually costs less than separate policies. Older parents are often better on their own policy, since their age can raise the floater premium for everyone.
Use a top up or super top up
A top up policy pays only after your bills cross a set amount, called the deductible. A super top up counts all bills in the year together. Because the insurer pays only above the deductible, these plans cost much less than a base policy with the same cover. Pairing a modest base policy, or employer cover, with a super top up is a common way to get high cover at a lower cost.
Consider a voluntary deductible or co payment
Some policies offer a lower premium if you agree to pay the first part of each claim, or a share of every bill. This can work for people with savings, but it means paying more yourself when you claim. Think carefully before choosing it, especially for older family members.
Keep your no claim bonus
Many policies raise your sum insured for every year without a claim, at no extra cost. Over a few years this adds a lot of cover for the same premium. Our guide to the no claim bonus in health insurance explains how it works.
Pay yearly or for a longer term
Some insurers give a discount for paying once a year rather than monthly, or for buying a two or three year term. Ask about this when you compare.
Claim tax benefits
Under Section 80D of the Income Tax Act, you can claim a deduction of up to Rs 25,000 a year for health insurance premiums for yourself, spouse and children, and up to Rs 50,000 if you are a senior citizen. A separate limit applies to premiums for parents. This deduction is available only under the old tax regime, so check which regime you use.
Where to Compare and Buy Low Cost Health Insurance
- Directly from insurers. Insurer websites and branches let you get quotes and read policy documents.
- Licensed agents and brokers. They can compare plans, but ask whether they are registered with IRDAI.
- Insurance comparison websites. These must also be registered with IRDAI. Use them for quotes, then read the full policy wording before you pay.
- Bima Sugam. IRDAI is building this single online platform for buying and managing policies; check its status on official channels.
The cheapest premium is not always the best value. A policy with many limits can cost you more when you claim.
What to Check Before You Buy
| Feature | What to look for |
|---|---|
| Room rent limit | A cap on room rent can cut the whole claim in proportion |
| Waiting periods | Initial, pre existing disease and specific illness waiting periods |
| Co payment | If you must pay a share of every bill |
| Network hospitals | Whether good hospitals near you offer cashless treatment |
| Sub limits | Caps on treatments such as cataract or joint surgery |
| Claim settlement record | Published data on how claims are handled |
Always disclose your health history honestly. Hiding a condition to get a lower premium can lead to a claim being refused.
For more help, read our list of health insurance plans in India and our guide on how to choose the right health insurance.
Mistakes That Make Cheap Cover Costly
- Choosing a very low sum insured just to save on the premium.
- Letting a policy lapse, which can restart waiting periods with a new insurer.
- Relying only on employer cover and having nothing after changing jobs.
- Skipping the policy wording and finding limits only at claim time.
If you have a long term illness, ask insurers about plans designed for it, and compare their waiting periods closely.
Nominate a family member on the policy and tell them where the documents are kept.
Review your cover every year, especially after marriage, the birth of a child or a move to a new city.
Keep copies of your policy, premium receipts and health records in one place so claims are easier.
If a claim is refused unfairly, you can complain to the insurer’s grievance cell and then to the Insurance Ombudsman.
Medical costs in Indian cities tend to rise each year, so cover that feels enough today may be too little in a few years.
When comparing quotes, make sure each one is for the same sum insured, members and features.
Ask the insurer to explain any term you do not understand before paying, and keep the reply in writing.
Portability lets you move your policy to another insurer while keeping credit for waiting periods already served.
What We Changed From the Old Post
The old post was short, linked to one private insurer’s product pages and did not mention free government cover. We removed those links and rewrote the page with PM JAY and state schemes, the GST exemption on individual policies from September 2025, IRDAI’s 2024 rules on age, waiting periods and moratorium, ways to lower premiums such as floaters, top ups and the no claim bonus, Section 80D tax benefits and a checklist of policy features.
Frequently Asked Questions
What is the cheapest way to get health cover in India?
If you are eligible, PM JAY and state schemes are free. For a personal policy, buying young, choosing a family floater and adding a super top up often keeps cost down.
Is there GST on health insurance now?
Individual and family floater policies have been exempt from GST since 22 September 2025. Group policies still carry 18%.
Can people over 65 buy health insurance?
Yes. IRDAI removed the upper age limit in 2024, although premiums and terms for older buyers may be higher.
Is a top up policy enough on its own?
Usually not. A top up pays only above the deductible, so you need a base policy, employer cover or savings to handle bills below that amount.