In today’s fast-paced world, medical emergencies can happen anytime. The cost of hospitalization and surgery is rising every year, making health insurance a must-have financial tool. One of the most trusted names in India for insurance is the Life Insurance Corporation of India (LIC). LIC offers health insurance plans, especially the LIC Jeevan Arogya plan, which helps you protect yourself and your family from unexpected medical expenses.
In this guide, we will explain LIC Health Insurance in simple words, covering its features, benefits, eligibility, premiums, and examples to help you understand how it works.
What is LIC Health Insurance?
LIC Health Insurance refers to the health insurance policies offered by the Life Insurance Corporation of India. The main goal of these policies is to provide financial protection against medical expenses arising from accidents, illnesses, and hospitalization.
The most popular plan under LIC Health Insurance is LIC Jeevan Arogya, a non-linked, non-participating health insurance policy. Unlike traditional health insurance, this plan pays fixed benefits, meaning you receive a predetermined amount for hospitalization or surgery, regardless of your actual bills.
For example, if your hospital stay is 5 days and your plan covers ₹2,000 per day, LIC will pay ₹10,000 even if your actual bills are ₹12,000 or ₹8,000.
Who Can Buy LIC Health Insurance?
LIC Jeevan Arogya allows coverage for almost all family members, including parents and in-laws. Eligibility is as follows:
| Person Covered | Age Range |
| Self / Spouse | 18–65 years |
| Children | 91 days–17 years |
| Parents / Parents-in-law | 18–75 years |
This flexibility allows you to cover your entire family under one plan, which is convenient and cost-effective.
Key Features of LIC Jeevan Arogya
LIC Jeevan Arogya comes with several benefits that make it one of the top choices for health coverage in India. Let’s explore them in detail:
1. Hospitalization Cash Benefit
If you are hospitalized due to sickness or accidental injury, LIC provides a daily cash benefit.
Example:
You have a policy that gives ₹2,000 per day for hospitalization. If you are hospitalized for 5 days, LIC will pay:
5 × ₹2,000 = ₹10,000
This amount helps cover daily expenses such as food, transportation, or other non-medical costs.
2. Major Surgical Benefit
In case of surgery, LIC pays a lump sum amount irrespective of the actual surgery cost.
Example:
If your plan provides ₹1,50,000 for major surgery and you undergo a surgery costing ₹1,80,000, LIC will still pay ₹1,50,000. This is helpful to manage additional expenses without worrying about exact bills.
3. Day Care Procedures
Many medical procedures, such as cataract surgery or chemotherapy, do not require long hospital stays. LIC pays a lump sum for day care procedures as per the policy terms.
Example:
If day care treatment is covered for ₹20,000 and you undergo a cataract operation, you receive ₹20,000 as benefit.
4. Ambulance Cover
Emergencies require quick transport to hospitals. LIC covers ambulance charges up to ₹1,000, reducing your financial burden in urgent situations.
5. Premium Waiver Benefit
If you claim the major surgical benefit, LIC may waive your next year’s premium, giving financial relief after medical emergencies.
6. No Claim Benefit (NCB)
If you do not make a claim in a policy year, LIC may increase your health cover in the next year. This encourages policyholders to maintain good health.
7. Tax Benefits
Premiums paid for LIC health insurance are eligible for tax deductions under Section 80D of the Income Tax Act.
Example:
If you pay ₹20,000 as premium for self and family, you can claim up to ₹25,000 as tax deduction if below 60 years of age.
Why Choose LIC Health Insurance?
1. Fixed Payouts for Peace of Mind
LIC Jeevan Arogya provides fixed benefit payouts, unlike reimbursement-based health insurance. This is ideal for people who want predictable financial support during hospitalization or surgery.
2. Family Coverage
You can cover multiple family members, including spouse, children, parents, and in-laws, in a single plan. This reduces the hassle of buying separate policies for each member.
3. Flexible Premium Options
LIC allows you to pay premiums annually, half-yearly, quarterly, or monthly depending on your convenience.
Example Calculation:
If annual premium = ₹20,000
- Half-yearly = ₹10,200 per 6 months (2% extra)
- Quarterly = ₹5,150 per quarter
- Monthly = ₹1,710 per month
This flexibility makes it easier to manage premiums according to your budget.
4. Add New Family Members
If you get married or have a child, you can add them to your policy during the policy term, ensuring everyone is covered.
5. No Waiting Period for Accidental Hospitalization
LIC provides benefits without any waiting period if hospitalization is due to accidental injury.
Important Considerations
Before buying LIC Health Insurance, keep these points in mind:
| Consideration | Details |
| Maturity Benefit | None (policy focuses only on health cover) |
| Surrender Value | None (cannot withdraw money by canceling policy early) |
| Waiting Period | Applies for some illnesses but not accidents |
| Loan Facility | Not available under this policy |
| Policy Revival | Can revive within 2 years from first unpaid premium |
How LIC Health Insurance Premium is Calculated
Premiums depend on age, sum insured, coverage type, and family members. Here’s a simple example:
Example:
- Age: 35 years
- Coverage: ₹2,00,000
- Hospitalization cash benefit: ₹2,000/day
- Term: 1 year
Estimated annual premium: ₹15,000–₹20,000 (varies by family members and sum insured)
If a person aged 50 wants the same coverage, premium will be higher due to increased health risk.
Claim Process Example
Suppose Mr. Sharma, aged 40, undergoes surgery costing ₹1,80,000. He has LIC Jeevan Arogya with major surgery benefit of ₹1,50,000.
Claim Calculation:
- Policy covers lump sum ₹1,50,000 → Mr. Sharma receives ₹1,50,000
- Hospitalization for 5 days at ₹2,000/day → ₹10,000
Total Benefit Received = ₹1,50,000 + ₹10,000 = ₹1,60,000
This reduces his out-of-pocket expenses significantly.
Advantages of LIC Jeevan Arogya
- Covers all family members including parents and in-laws
- Provides fixed lump sum benefits for hospitalization and surgery
- Flexible premium payment options
- Tax benefits under Section 80D
- No claim benefit to increase coverage
- Can be combined with existing mediclaim policies for same medical cause
Example Scenario: Family Coverage
Suppose a family of 4 (father, mother, 2 children) takes LIC Jeevan Arogya:
- Hospitalization cash benefit: ₹2,000/day
- Major surgery benefit: ₹1,50,000
If father undergoes a 7-day hospitalization with surgery, calculation:
- Hospitalization: 7 × ₹2,000 = ₹14,000
- Surgery benefit = ₹1,50,000
- Total payout = ₹1,64,000
This payout can cover hospital bills, travel, and other expenses.
Also Read: myEquifax – A Guide to Managing Your Credit Easily
Conclusion
LIC Health Insurance, especially the LIC Jeevan Arogya plan, is a reliable way to secure your family’s health financially. With fixed benefits, flexible premiums, family coverage, and tax advantages, it is suitable for anyone who wants predictable financial protection against medical emergencies.
Before buying, always compare coverage options, read the policy document carefully, and calculate premiums based on family size and desired coverage. By planning ahead, you can protect your loved ones from high medical expenses and gain peace of mind.