Choosing the best health insurance under ₹5 lakh in India has become essential in 2026 as medical costs continue to rise across private and government hospitals. A single hospitalisation, surgery, or emergency treatment can easily cost several lakhs, making a ₹5 lakh health insurance policy a practical and affordable safety net for individuals and families. Whether you are a salaried professional, a self-employed individual, or looking for a family floater plan, the right health insurance can protect both your health and savings.
In this guide, we will compare the top health insurance plans under ₹5 lakh, including private insurers and government schemes, to help you choose the most suitable policy based on coverage, premium, benefits, and claim experience in India.
Why ₹5 Lakh Health Insurance Matters in 2026
Medical treatment costs in India have risen steadily — a single hospital stay, surgery or emergency can cost lakhs of rupees. A ₹5 lakh health insurance policy gives you comprehensive protection for most common illnesses and surgeries. It’s ideal if you:
- Are a young individual or couple seeking affordable coverage
- Want a budget-friendly family floater
- Need financial backup for emergencies
Additionally, various government health insurance schemes provide ₹5 lakh coverage, especially for low-income citizens and seniors — increasing financial security even further.
Top Health Insurance Plans Under ₹5 Lakh (2026)
Here’s a curated table of the best health insurance plans available in India that offer upto ₹5 lakh cover (individual or family):
Several insurance companies in India offer reliable health insurance plans with coverage up to ₹5 lakh, suitable for individuals as well as families. Care Health Insurance’s Care Supreme Discounted Plan is popular due to its no room rent limit and unlimited restoration benefit, making it ideal for people who want flexibility during hospitalisation. The approximate premium starts around ₹615 per month, depending on age and city.
Max Bupa ReAssure 2.0 Titanium+ is another strong option under the ₹5 lakh category. This plan is well known for its 100% no-claim bonus, which increases your coverage every year you don’t make a claim. Premiums generally start at around ₹628 per month, making it suitable for young professionals and families.
Star Health Comprehensive Individual Policy offers ₹5 lakh coverage with private AC room eligibility and automatic restoration benefits. It is especially preferred by those looking for a trusted insurer with a strong hospital network. The monthly premium usually starts at approximately ₹708.
If you are looking for a comparatively lower premium, Aditya Birla Active One Max provides ₹5 lakh health insurance with no room rent limit and wellness benefits. Premiums can start from around ₹517 per month, making it one of the more affordable options.
For those who trust public sector insurers, New India Assurance Mediclaim Policy offers ₹5 lakh coverage with a vast network of hospitals across India. Annual premiums generally start from ₹2,800, depending on the insured person’s age.
Future Generali Health Insurance is known for its decent claim settlement ratio and comprehensive coverage under the ₹5 lakh sum insured. The yearly premium typically begins around ₹4,500.
HDFC ERGO Health Insurance offers ₹5 lakh coverage with strong customer support and a wide cashless hospital network. Premiums generally start at approximately ₹6,900 per year.
Lastly, Oriental Insurance Health Policy provides traditional mediclaim coverage under ₹5 lakh, suitable for individuals who prefer government-backed insurers. Annual premiums start at around ₹4,300.
*Premiums vary by age, location, and health profile.
Tip: Monthly premiums are approximate and may change based on your age and risk profile.
Quick Comparison: Features That Matter
When selecting the best health insurance under ₹5 lakh in India, certain features play a critical role. A policy with no room rent limit helps avoid unexpected out-of-pocket expenses during hospitalisation. Restoration benefits automatically refill your sum insured after a claim, which is extremely useful in case of multiple hospitalisations within the same year.
A wide network of cashless hospitals ensures smoother treatment without upfront payments. No-claim bonuses reward policyholders who do not file claims by increasing the sum insured without increasing premiums. Additionally, coverage for pre- and post-hospitalisation expenses ensures that diagnostic tests, medicines, and follow-ups are also taken care of.
Government Health Insurance — Free or Subsidised ₹5 Lakh Cover
Apart from private insurers, several public schemes in India provide ₹5 lakh cover — either free or at very low cost:
Ayushman Bharat – PM-JAY
- Government scheme offering up to ₹5 lakh per family per year.
- Covers secondary and tertiary hospitalisation expenses.
- Cashless treatment at empanelled hospitals across India.
Government Health Insurance Schemes Offering ₹5 Lakh Coverage
Apart from private insurance plans, the Indian government also provides health insurance schemes with coverage up to ₹5 lakh. The most prominent among them is Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY). This scheme offers ₹5 lakh health coverage per family per year and provides cashless treatment at empanelled public and private hospitals across India. It is mainly targeted at economically weaker sections.
Several state governments also run their own ₹5 lakh health insurance schemes. For example, the Tamil Nadu Chief Minister’s Comprehensive Health Insurance Scheme covers major surgeries and treatments up to ₹5 lakh per family. Yeshasvini Health Scheme in Karnataka offers similar coverage, mainly for cooperative society members. Kerala’s Karunya Healthcare Scheme provides financial assistance up to ₹5 lakh for patients suffering from serious illnesses. Jharkhand also runs a state-level health insurance scheme offering free treatment up to ₹5 lakh for eligible residents.
These schemes are especially beneficial for low-income families and rural populations.
Private vs Government ₹5 Lakh Health Insurance
Private health insurance plans usually require a paid premium but offer greater flexibility, add-on covers, and a wider choice of hospitals. They also allow lifelong renewability and customisation based on your needs. Government schemes, on the other hand, are often free or highly subsidised and are best suited for basic healthcare needs. However, they are limited to empanelled hospitals and offer fewer customisation options.
If you are looking for advanced coverage, quicker service, and flexibility, private health insurance is generally the better option. Government schemes are ideal for those seeking essential medical coverage with minimal financial burden.
If you value custom features and flexibility, private insurance is better. If you seek basic financial security with minimal cost, government schemes are excellent.
How to Choose the Best health insurance under 5 lakh in India
Here are key questions to evaluate any plan:
- Who is it for? Individual, family floater, seniors?
- What’s covered? Hospitalisation, daycare procedures, OPD?
- Are pre-existing diseases covered? Waiting period clarity matters.
- Network hospital count? More hospitals = easier cashless claims.
- Claim settlement ratio (CSR)? Higher is generally better.
Always read inclusions, exclusions, and waiting periods before buying.
FAQs About Best health insurance under 5 lakh in India
Q1. Is ₹5 lakh health insurance enough?
It’s great for basic coverage and emergencies, but ₹10–15 lakh is ideal for families with higher risk or older members.
Q2. Can senior citizens get ₹5 lakh cover?
Yes — through private insurers or government schemes like Ayushman Bharat or state plans.
Q3. What’s a family floater plan?
One policy covering your entire family with shared sum-insured — cost-effective for families.
Q4. What is a waiting period?
Time before coverage starts for pre-existing diseases — usually 2–4 years.
Q5. Can I buy online?
Yes — most insurers offer online purchase with discounts and quick documentation.
Choosing the Best health insurance under 5 lakh in India in 2026 depends on:
- Your age & health
- Family size
- Budget
- Required benefits
- Claim settlement experience
Whether you choose a private plan with advanced features or leverage a government scheme, a ₹5 lakh cover ensures you’re protected against most medical emergencies.
Start by comparing plans, check premium quotes, and don’t wait — your health insurance is your financial shield in uncertainty.
