LIC’s Health Plans
The Life Insurance Corporation of India was established in the year 1956 as the sole life insurance provider in the country. Other insurance companies were permitted to enter the insurance market only from the year 2000 but until then LIC enjoyed a monopoly in the insurance industry. Even today, the company has the largest customer base despite the fact that there are other insurers. In terms of products offered, LIC has a wide variety of plans. It offers life insurance as well as health insurance plans. In the health insurance category, the company offers plans which take care of major medical contingencies. Before we understand the plans offered by LIC, let us first understand the concept of health insurance.
What is a health plan?
A health insurance plan is a plan which provides financial assistance in case of a medical emergency. A health insurance plan covers specific medical treatments and costs. If the insured suffers a medical contingency and incurs the covered costs, the health insurance plan pays the benefit to cover the costs incurred.
Salient features of health plans offered by life insurance companies
Health plans offered by life insurers have the following unique features –
- Health insurance plans offered by life insurance companies are different from health plans offered by general insurance companies. Life insurers offer fixed-benefit health insurance plans which pay a fixed amount in case the insured suffers from a covered medical contingency. The amount is irrespective of the actual medical costs incurred
- Premiums paid towards the plan are eligible for tax deduction under Section 80D up to a maximum of INR 25,000. However, for senior citizens, the limit increases to INR 50,000
- Health plans do not have a maturity benefit. The plan benefit is paid only if the insured contingency takes place
Health plans offered by LIC
LIC offers two kinds of health insurance plans which are discussed below –
- LIC’s Jeevan Aarogya Plan
Jeevan Arogya is a comprehensive health insurance plan which covers specific contingencies and pays a benefit in the event any of the covered contingency occurs. The features of the plan are as follows –
- The insurance cover increases every year
- A fixed benefit is paid if the covered instance occurs
- There is a no claim bonus too under this LIC health plan if no claims are made in a policy year
- This LIC Health Plan plan can be taken to cover family members like spouse, children, parents and parents-in-law
- Hospital cash benefit, surgery benefit, day care treatments, ambulance benefits, etc. are some of the benefits covered by the plan
- In the case of major surgery, future premiums are waived
- Premium discounts are also available to make the plan more affordable
- LIC’s Cancer Cover Plan
As the name suggests, this plan covers cancer and pays a benefit in case the insured is diagnosed with cancer during the term of the plan. The features of the plan are as follows –
- Early stage are covered
- There are two coverage options under the plan, one where the sum insured remains the same and the other where the sum insured increases every year for five years
- 25% of the sum insured is paid in early stages of cancer and the premiums are waived
- In case of major stage cancer, the remaining sum insured is paid and the plan is terminated.
- If the policy is bought online the policyholder can enjoy a premium discount
- Premiums paid for the plan are allowed as a deduction under Section 80D up to INR 25,000
A family floater health plan is a plan which covers the family members under the same plan.
LIC’s Jeevan Arogya Plan offers two optional riders which are accident benefit rider and term assurance rider.
No, LIC’s health plans have no death benefit. They pay a benefit only if the insured suffers from a covered medical contingency.
No, LIC’s health insurance plans do not offer loan facility.
Yes, a waiting period is applicable in both LIC’s health insurance plans during which coverage would not be available. In the case of Jeevan Arogya Plan, there is a general waiting period of 90 days from the date of policy commencement. Moreover, there are specific waiting periods too for specified illnesses. In the case of Cancer Care plan, the waiting period is 180 days from the date of policy commencement.