Economic status of any country is directly proportional to the health status of the people of that country. In Pakistan, many people have no access to quality healthcare services. This is because of private out-of-pocket payment to finance the healthcare services. The present study investigates the willingness to pay of the people of Sheikhupura district for health insurance. Data of total 385 households is collected and 104 households refuse to respond due to any reason. Finally data of 269 households is used in the study. Contingent Valuation Method is used to elicit the willingness to pay and for estimations Probit and Sequential logit models are used. Result shows that only 6% of the respondents have awareness about health insurance and on average respondents are willing to pay Rs.2264 per person per year. Total 190 (71%) respondents show their WTP for health insurance and 79 (29%) respondents were not willing to pay for health insurance. The determinants which influence most the willingness to pay for health insurance are disability in the household, sickness of any household member in last 30 days, sold any household item for the treatment of any household member, Income of the household and awareness about health insurance. Supervisor:- Dr. Saqlain Raza