An investment for your health
How LIC’s Health Plus stacks up against regular mediclaim policies.
LIC’S health plus: An investment component allows the health fund corpus to grow
Regular mediclaim: Does not have an investment component
LIC’S health plus: Premiums have to be paid regularly and increase with age as per the LIC’s slab rate
Regular mediclaim: Premiums have to be paid regularly. Premiums increase with age as per insurer’s slab rate, but vary after a major claim
LIC’S health plus: Claims are hassle-free, provided they are within rules
Regular mediclaim: Claim processing can be tedious for large sums. Policies are renewed at the discretion of the insurer
LIC’S health plus: Covers only major surgeries
Regular mediclaim: Covers most surgeries, including non-surgical ailments and less critical surgeries
LIC’S health plus: Payments are made in chunks
Regular mediclaim: Claims are paid as per actual expenses and these are subject to limits on room rent, etc. However, most insurers do cover expenses up to 60 days pre- and post-hospitalisation
LIC’S health plus: Payments of up to three times sum assured in one’s lifetime
Regular mediclaim: Payments of up to 100 per cent of the sum assured every year
No claims are entertained in the first 180 days of the policy—the exception being accidents. Also, in the first year, the hospital cash benefit is restricted to 18 days, including nine days in the ICU.
Cash benefit is double for intensive care treatments. The list of diseases is huge and covers seven cardiovascular ailments, which require surgery, splenectomy, bone marrow transplant (as recipient), nine diseases involving the nervous system, among many others.
One can make claims of up to three times the sum assured—and this is not a floating cover. The cover, however, terminates upon the death of the insured, and the balance in the fund is handed to the nominee.
The policyholder is free to reduce the number of members in the cover, and is equally free to increase premium at a later date.
Though the insured could have several policies, the maximum cumulative benefit cannot exceed Rs 5 lakh in case of sum assured and Rs 2,500 a day in case of hospital cash benefit.
Following LIC, Reliance Life has launched a heath-related ULIP policy, but there’s a difference: there is no lump sum benefit for critical diseases.
Any expenditure relating to critical illness or any illness that requires hospitalisation has to come from the fund.
Reliance Life, however, offers a critical illness rider benefit—but this is only a rider and lapses on the first use.