In this paper, we investigate the extent of utilization and willingness to pay for health insurance in Uganda. Specifically, we examine the effect of Non-Communicable Diseases (NCDs) on both utilization and willingness to pay for health insurance. We apply a binary logistic model on the 2016/17 Uganda National Household Survey (UNHS) data, and the results indicate that, individuals living with NCDs like diabetes, high blood pressure, and heart diseases, are less likely to utilize health insurance compared to those without such diseases. We also find that, although Ugandans suffering from NCDs are willing to pay for health insurance, very few are holders of health insurance policies. More precisely, their willingness to pay does not translate into actual uptake. The results further reveal that awareness about health insurance and wealth, are very crucial factors in an individual’s willingness to pay, as well as utilization of health insurance. Therefore, policies geared towards enhancing health insurance uptake will go a long way in ensuring protection against NCDs. Such policies have to mitigate both demand and supply hindrances to health insurance uptake. For instance, massive awareness programmes, poverty reduction and income enhancing programmes, as well as implementation of a national health insurance scheme.