The Life Insurance Corporation of India (LIC) has introduced Arogya Rakshak health insurance, a non-linked, non-participating, regular premium, individual, health insurance plan.

The plan is aimed at providing timely support in case of medical emergencies and helping the insured and his/her family to remain financially independent in difficult times.

According to the LIC, “The Arogya Rakshak policy provides fixed benefit health insurance cover against certain specified health risks and provides timely support in the case of medical emergencies and helps the insured and his/her family to remain financially independent in difficult times.”

The Arogya Rakshak policy is different from regular comprehensive health insurance in terms of its method of reimbursement. Generally, comprehensive health policies reimburse the actual cost incurred on medical treatment, up to the limit of the sum insured. On the other hand, the Arogya Rakshak policy pays lump sum benefit equal to the sum insured, irrespective of actual medical treatment costs.

Here are key things to know about LIC’s Arogya Rakshak policy:

The policy

  • The Arogya Rakshak policy covers the main insured/spouse/ parent between the ages of 18 and 65 years, and children between the ages of 91 days and 20 years.
  • The coverage period available to major insured/spouse/parents is up to 80 years but the same is only available to children up to the age of 25 years.
  • The policy works only against certain specified health risks.
The benefits
  • The policy has an ‘Auto Step-up’ feature that automatically increases the overall health cover with time.
  • Flexible benefit restrictions and flexible premium payment options.
  • Financial cover for hospitalization, surgery, etc.
  • If more than one member is covered under the policy, the Arogya Rakshak health insurance plan offers a premium waiver for other insured persons in case of the death of the original principal insured.
  • The policy provides a Premium Waiver Benefit for one year if any insured undergoes a surgery that falls under Category I or Category II for certain major surgical benefits.
  • Optional riders — LIC’s New Term Assurance Rider and LIC’s Accidental Benefit Rider — are also available under the plan.
  • The health insurance plan also provides ambulance and health check-up benefits.