Rs 18 A Day For Health Insurance—Is It Really Enough?

You would have seen health insurance companies advertising plans at Rs 10, 18, and 28 a day. When you calculate for a year, they would cost you a low premium as well. But is such insurance, also known as micro health covers, enough for you?

How Does Micro Health Cover Work? 

Micro health covers advertised at price points like Rs 18 a day provide affordable access to health insurance. But they mainly target low- and moderate-income groups in India, who still struggle to get good healthcare. These plans do offer genuine hospitalization protection, but with inadequate sum insured amounts, typically from Rs 1 lakh up to Rs 5 lakh.  Also, they come with a lot of limitations. Hence, they must be viewed as supplementary rather than as a comprehensive health solution.

Micro health insurance plans cover hospitalization expenses such as surgeries, ICU charges, and certain modern treatments if the insured is hospitalized for more than 24 hours. Pre- and post-hospitalization expenses are usually covered for defined periods (30 days before and 60 days after hospitalization).

Another benefit is cashless treatment options in network hospitals. Premiums for such plans are exceptionally low (as little as Rs 18 per day, or about Rs 500-600 per month), making them accessible to the masses.

Why It May Not Be Enough 

“The most important limitation is the coverage cap, which is often Rs 1-5 lakh. The coverage is very inadequate for high-cost or prolonged treatments—like those for cardiac disease, cancer, or major surgeries. In that case, the treatment will exceed the insured limit, requiring additional financing or top-up plans,” says Madhupam Krishna, Securities and Exchange Board of India (Sebi) registered investment advisor (RIA) and chief planner, WealthWisher Financial Planner and Advisors.

“Sum insured matters contextually: Rs 5 lakh suffices for single individuals in non-metro areas, but families in metro cities require Rs 10 to 15 lakh given medical inflation of 12 per cent to 14 per cent annually,” says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor (RIA), and founder and chief investment advisor of SahajMoney, a financial planning firm.

These plans also have exclusions for certain diseases. Room rent and ICU charges often have daily sub-limits pegged to the sum insured. This restricts access to higher-end facilities for the policyholder.

Something Is Better Than Nothing 

When you are on a budget, then buying a limited micro health plan is indeed better than waiting. Micro plans cost as little as Rs 200 to 500 annually for basic family coverage, making insurance accessible to people in low-income groups who cannot afford premiums of comprehensive plans costing Rs 5,000 to 20,000 annually.

“So starting with micro coverage protects against immediate hospitalization risks, prevents them from taking debt for medical emergencies, and establishes continuity as insurers offer lifelong renewability,” says Kumar.