Top 5 Monthly Health Insurance Plans in India 2025

Medical emergencies can arise anytime, and without health insurance, there’s very little one can do to mitigate them. In the last few years, healthcare costs have skyrocketed, making it nearly impossible to afford medical services from personal savings. A health insurance plan has become a critical safety net in this inflationary period.

However, the increase in healthcare costs has also impacted health insurance premiums. Over the last 3 years, the average increase in health insurance premiums has lingered between 25% and 30%. Despite the heightened awareness of the importance of medical insurance post the COVID-19 pandemic, there has been little to no respite in the price surge.

While the annual premium payments can be a huge burden on middle—and low-income households, there are many ways you can make buying health insurance a lucrative investment. One such way is monthly health insurance plans. These plans offer a flexible and affordable way to get health insurance without paying the full upfront costs.

In contrast to traditional annual plans, monthly plans allow policyholders to pay a small portion of the premium on a monthly basis. Health insurance is an essential financial tool and a necessity, making monthly health insurance the most viable option for navigating any unforeseen health risks. In this blog, we will explore the benefits, key features, and eligibility of some of the best monthly health insurance plans available in India.

Also, read: Top 10 Health Insurance Companies in India

What Are Monthly Health Insurance Plans?

A health insurance policy can cover various medical expenses, including—but sometimes not limited to – hospitalisation, pre- and post-hospitalisation, ambulance, ICU/room rent, maternity care, and critical illnesses. A monthly health insurance plan offers all the same benefits as a typical health insurance plan, but with a more flexible payment structure. 

Additionally, when it comes to health insurance, a lot of the policy benefits add to the premium cost. Owing to this, people end up getting insufficient health insurance coverage and paying out of pocket for specific treatments and services. Not only does this make health insurance an expensive investment, but also an inefficient financial tool. This is where a monthly plan can come into play.

The policyholder can customise their health insurance coverage to meet all their healthcare needs without worrying about a large premium payout, as the premium cost gets broken down into smaller monthly instalments.

How Monthly Health Insurance Plans Work?

For instance, Samira, a 30-year-old healthy woman, is looking to buy an individual health insurance policy of Rs. 10 lakh with the following add-ons: critical illness coverage, wellness benefits, and OPD coverage.

Samira has multiple investments and annual deductibles, so she cannot afford comprehensive health insurance with an annual subscription. Here is how much monthly health insurance would cost her and a comparative analysis of how much the same plan would cost her annually.

*These costs are for reference purposes only, and actual premium costs may vary from provider to provider.

Both monthly and annual health insurance plans come with discounts and special offers, depending on the insurer. However, the benefit of a monthly plan is that Samira won’t have to block a large amount in a one-time payment and can renew her plan every month. An annual plan without any add-ons will cost Samira between Rs. 26,000 and Rs. 30,000.

Suggested read: Top 5 Cashless Health Insurance Plans in India

Top 5 Monthly Health Insurance Plans In India

1. Aditya Birla Activ Health Enhanced Plan

Key Features:

• Sum Insured: Rs. 2 lakh to Rs. 2 crore
• Coverage: In-patient hospitalisation, pre- & post-hospitalisation, day-care procedures, domiciliary hospitalisation
• Add-ons:

• • Health Returns: Earn up to 30% of your premium as a reward for staying active
  • Chronic Management Program: Coverage from day one for chronic illnesses like diabetes, asthma, etc.
  • Reload of Sum Insured: 100% reload of the sum insured if exhausted during a policy year
• Network Hospitals: 10,051+

Monthly Premium Estimate: Starts from Rs. 2,500

2. Niva Bupa Health Pulse Policy

Key Features:

• Sum Insured: Rs. 3 lakh to Rs. 25 lakh
• Coverage: In-patient care, pre- & post-hospitalisation, day-care treatments, alternative treatments (AYUSH)
• Add-ons:

• • No Claim Bonus: 20% increase in sum insured for each claim-free year, up to 100%
  • Health Check-ups: Annual health check-ups for all insured members
  • ReAssure Benefit: Unlimited reinstatement of sum insured for unrelated illnesses
• Network Hospitals: 10,000+

Monthly Premium Estimate: Starts from Rs. 2,200

3. HDFC ERGO Optima Restore

Key Features:

• Sum Insured: Rs. 3 lakh to Rs. 50 lakh
• Coverage: Hospitalisation expenses, pre- & post-hospitalisation, day-care procedures, domiciliary treatment
• Add-ons:

• • Restore Benefit: Automatic restoration of the sum insured upon exhaustion
  • Multiplier Benefit: 50% increase in sum insured for each claim-free year, up to 100%
  • Emergency Ambulance: Coverage for ambulance expenses
• Network Hospitals: 13,000+

Monthly Premium Estimate: Starts from Rs. 2,800 

4. ICICI Lombard Complete Health Insurance

Key Features:

• Sum Insured: Rs. 2 lakh to Rs. 50 lakh
• Coverage: In-patient hospitalisation, pre- & post-hospitalisation, day-care treatments
• Add-ons:

• • Wellness Program: Earn reward points by completing health-related activities
  • Maternity Cover: Coverage for maternity expenses after a waiting period
  • Critical Illness Cover: Lump sum benefit on diagnosis of listed critical illnesses
• Network Hospitals: 6,500+

Monthly Premium Estimate: Starts from Rs. 2,400

5. Star Health Family Health Optima Insurance Plan

Key Features:

• Sum Insured: Rs. 1 lakh to Rs. 25 lakh
• Coverage: In-patient hospitalisation, pre- & post-hospitalisation, day-care procedures, organ donor expenses
• Add-ons:

• • Automatic Restoration: 100% restoration of the sum insured upon exhaustion
  • Newborn Baby Cover: Coverage for the newborn from the 16th day
  • Restoration Benefit: Additional sum insured at no extra cost
• Network Hospitals: 14,000+

Monthly Premium Estimate: Starts from Rs. 2,000

Monthly health insurance plans are a cost-effective and flexible alternative to annual plans. We strongly recommend you conduct personal research, carefully review policy benefits, and compare options to get a proper understanding of the policy terms and coverage.

While these monthly plans offer great financial relief to individuals, they can also benefit fast-growing startups and small and medium-sized businesses. These businesses experience high volatility and attrition, making the annual employee health insurance a rather cost-intensive purchase.

Also, read: Top 10 Personal Accident Insurance Policies in India

Benefits of Monthly Health Insurance Plans

1. Affordability

According to a recent study, affordability was one of the biggest factors behind many Indian households not having health insurance. Monthly health insurance plans can make it extremely affordable for people to get quality medical care with a lower upfront cost. Instead of making a one-time lump sum payment, policyholders can spread out their premiums into smaller monthly instalments.

2. Flexibility

In addition to being affordable, monthly plans offer better flexibility to the policyholders. Allowing them to manage their finances and policy better with the pay-as-you-go option. The monthly plans allow easier cancellations if required, compared to the annual plans, where policyholders are locked in for a year.

3. Easy Cancellation & Renewal

If you cancel an annual health insurance policy after the free-look period, you may get a partial refund, depending on the policy terms and policy period. However, it is relatively easier to cancel your monthly health insurance. If you wish to cancel a monthly policy, you have to simply stop paying the premiums, and the coverage ends at the end of the month.

Businesses and gig workers who use the group monthly insurance plans can benefit a lot from this, as the policy offers better flexibility, and it is easier to modify subscriptions.

4. Access to Health Coverage Without a Long-Term Commitment

Policyholders who need short-term coverage can opt for monthly health insurance plans. They can get instant health insurance coverage without requiring to be locked in for at least a year. Specifically, workers who switch jobs frequently or individuals wanting to get insurance temporarily can benefit from this type of plan.

5. Other Benefits

Monthly plans offer the same extensive benefits as annual plans. Policyholders can get coverage for hospitalisation, OPD, pre-existing conditions, wellness, and telemedicine benefits.

Key Features of Monthly Health Insurance Plans

1. Premium Payment Structure

The payment structure for a monthly health insurance plan is spread into equal monthly instalments. Let’s say the annual policy premium costs Rs. 35,000 the monthly premium will cost about Rs. 2,916 for said policy.

2. Grace Period for Payments

Similar to the annual plan, insurers provide a grace period for monthly insurance as well. In case of a missed payment, the policyholder can renew the policy within 15–30 days past the due date. If the payment is not made within this grace period, the policy will automatically lapse. Please note that the grace period varies from provider to provider.

3. Comprehensive Coverage

Most monthly plans cover:

• Hospitalisation Expenses: Room rent, ICU charges, secondary consultation fees, pre & post-hospitalisation
• Daycare Treatment: Surgeries that don’t require 24-hour hospitalisation
• Ambulance Charges: Emergency transportation costs
• OPD (Optional): Covers medical checkups, medicines, and lab tests
• Critical Illness (Optional): Provides a lump sum amount in case of major illnesses like cancer, stroke, or heart attack
• Wellness (Optional): Discounts on gym, yoga, and regular health check-ups

4. Tax Benefit

Regular visits to the OPD for check-ups and preventive screenings enable early detection of diseases and medical conditions. Early diagnosis and intervention can lead to better treatment outcomes and reduce the risk of complications or progression of diseases.

Recommended read: Section 80D of Income Tax Act

Monthly vs. Annual Health Insurance Plans

Who Should Consider a Monthly Health Insurance Plan?

1. Young Professionals & First-Time Buyers:

2. Freelancers & Gig Workers:

Freelancers usually generate irregular income and therefore often face financial inconsistencies. A monthly plan with a smaller premium can be easier to manage than a large lump sum payment. It also offers them continuous coverage even if they experience fluctuations in earnings.

3. Self-Employed or Startup Founders:

Solopreneurs or startup founders often go through cash flow issues, which is why monthly plans are best for them. They can ease cash flow and stay protected without investing a large chunk of their operational capital.

4. People in Job Transition or Relocation:

People going through a transition at work or locale can utilise the monthly health insurance plan for the gap period. The short-term coverage can help them stay protected during this transitionary period.

5. Short-Term Residents (Students, Expats, Digital Nomads):

Health insurance is most optimal when it offers coverage in network hospitals in proximate locations. This can be tricky for short-term residents, as they usually don’t stay in a place for longer than a few months. A monthly plan, however, can ensure temporary coverage.

6. Those Looking for Trial Coverage:

If you’re unsure about a specific policy, a monthly plan allows you to get a trial of the policy before committing to an annual plan.

Also, read: Top 5 Group Health Insurance Companies in India

Introducing Onsurity’s Monthly Group Health Insurance Plan

Onsurity is a 100% paperless platform that offers group health and wellness benefits for startups and MSMEs in India. Onsurity was the first group insurance provider to offer flexible monthly payment options to employers, a model that has now become a norm in the insurance marketplace. 

The group health insurance plan offered by Onsurity is comprehensive and highly customisable. Employers have the option to include other value-added benefits like – wellness memberships, teleconsultations, discounted medicines, health checkups, and diagnostic services as per their team’s requirements. Our dedicated support team is available for employers and employees to provide seamless claims assistance and team management. The monthly group health insurance plan at Onsurity starts from Rs. 145 per employee.

If you are a fast-growing startup or an organisation that frequently hires short-term employees, then do book a demo to learn more.

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