This paper examines the role of health insurance in the financial planning of middle-class families. Rising healthcare costs and unexpected medical emergencies have made financial security a major concern for households. The study aims to understand how health insurance contributes to risk management, protects savings, and ensures financial stability. It also explores the level of awareness, preference, and utilization of different health insurance policies among middle-class families. The research is based on primary data collected through surveys and supported by secondary data from reports and journals. A sample of 100 respondents is considered to analyse their financial planning behaviour, insurance coverage, and challenges faced in accessing healthcare services. The findings indicate that health insurance plays a crucial role in reducing out-of-pocket medical expenses and preventing financial burden during emergencies. However, lack of awareness, high premium costs, and complex policy terms remain significant barriers. The study concludes that increasing awareness and improving accessibility of health insurance can strengthen financial planning among middle-class families. It also highlights the need for policy improvements and financial education to ensure better adoption of health insurance as a key financial tool.