Which is the best LIC health insurance policy in India
Which is the best LIC health insurance policy in india In a time when medical costs are increasing faster than inflation, health insurance has become an essential part of every family’s financial planning. Whether you live in a metro city or a small town, a single medical emergency can drain your savings within days.
Life Insurance Corporation of India (LIC), a trusted name in the insurance industry, offers one key health insurance plan — LIC Jeevan Arogya. While LIC is widely known for life insurance and term plans, Jeevan Arogya stands as its only comprehensive health cover option.
But is it the best health insurance policy in India? Let’s explore its benefits, features, limitations, and how it compares with other plans in the market.
1. Overview of LIC Jeevan Arogya
LIC Jeevan Arogya is a non-linked, non-participating fixed-benefit health insurance plan. It provides a lump-sum benefit upon hospitalization or surgery, irrespective of the actual medical expenses.
Unlike typical “Mediclaim” policies, Jeevan Arogya does not reimburse hospital bills directly. Instead, it pays a pre-defined cash benefit depending on the level of coverage chosen.
Key Highlights
- Fixed daily hospital cash benefit ranging from ₹1,000 to ₹4,000 per day.
- Major surgical benefit up to 100 times the daily benefit.
- Coverage available for self, spouse, children, parents, and in-laws.
- Increasing health cover every year.
- No claim bonus benefit.
- Premiums payable annually, half-yearly, or monthly.
- Offers financial aid during hospitalization or surgery.
2. How LIC Jeevan Arogya Works
Step-by-Step Buying Process
Step 1 – Choose the Health Cover:
Decide the level of daily hospital benefit — ₹1,000, ₹2,000, ₹3,000, or ₹4,000 per day.
Step 2 – Calculate Premium:
Premium depends on your age, gender, sum assured, and number of members covered under the plan.
Step 3 – Select Premium Mode:
Choose between annual, half-yearly, or monthly payments.
Step 4 – Policy Activation:
Once active, the policy provides fixed daily cash for hospitalization and lump-sum for surgeries.
3. Major Benefits of LIC Jeevan Arogya
| Benefit Type | Description |
|---|---|
| Hospital Cash Benefit | Daily cash during hospitalization (₹1,000–₹4,000 per day). |
| Major Surgical Benefit | 100x of daily cash benefit (₹1 lakh–₹4 lakh). |
| Day Care Procedure Benefit | Lump-sum benefit for minor surgeries or short procedures. |
| Other Surgical Benefit | 2x of daily benefit for minor to moderate surgeries. |
| Premium Waiver Benefit (PWB) | Waives future premiums in case of major surgery claim. |
| No-Claim Benefit | Increases coverage annually if no claim is made. |
4. Limitations and Drawbacks
- No Cashless Facility – You must pay hospital bills first and then claim reimbursement from LIC.
- Low Sum Assured – Maximum benefit (₹4 lakh) may be inadequate for major treatments like cardiac or kidney surgeries.
- No Maturity Value – The plan doesn’t pay anything upon maturity.
- Reimbursement Delays – Customers report delays in claim processing.
- Premium Continuation – Premium payments continue even after major claims.
5. Real Customer Experiences
- Ravi Sharma (Delhi):
“I bought LIC Jeevan Arogya for my parents as it’s from a trusted brand. The claim process worked fine, but since it’s reimbursement-based, I had to pay hospital bills upfront. Good for small cities, but not ideal if you want instant cashless treatment.” - Sangeeta Nair (Kochi):
“The policy gave me ₹2,000 per day during hospitalization, which was helpful. However, for a major operation costing ₹3 lakh, the benefit felt limited. Still, it’s reliable for basic coverage.” - Manoj Deshpande (Nagpur):
“LIC is safe and trustworthy. I wish Jeevan Arogya covered full hospitalization bills directly. But for rural families or elderly parents, it’s better than having no health insurance.”
6. Difference Between Life Insurance and Health Insurance
| Parameter | Life Insurance | Health Insurance |
|---|---|---|
| Purpose | Financial security for dependents after death | Covers medical expenses during life |
| Benefit Type | Lump-sum on death | Payment during hospitalization |
| Payout Timing | After policyholder’s death | During illness or treatment |
| Investment Value | Some plans offer maturity benefit | No maturity benefit |
| Example | LIC Term Plan | LIC Jeevan Arogya |
💡 Tip: Always separate insurance and investment. Buy term life insurance for financial protection and invest the rest in mutual funds or SIPs for better returns.
7. Comparing Jeevan Arogya with Other Health Insurance Types
| Feature | LIC Jeevan Arogya (Life Insurance Co.) | Mediclaim (General Insurance Co.) |
|---|---|---|
| Coverage Type | Fixed benefit (cash payout) | Actual expense reimbursement |
| Cashless Facility | ❌ Not available | ✅ Available |
| Claim Type | Pre-defined cash amount | Based on real hospital bills |
| Premium Cost | Moderate | Variable |
| Best For | Supplementary health cover | Primary medical cover |
| Sum Assured | ₹1–4 lakh | ₹3 lakh to ₹1 crore |
| Maturity Benefit | ❌ None | ❌ None |
Verdict:
Jeevan Arogya can be a supplementary health plan, but not a complete replacement for a regular mediclaim policy. Ideally, combine it with a comprehensive cashless health plan from a reputed general insurer.
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8. Buying Guide: How to Choose the Right Health Insurance
- Room Rent & ICU Limit
- Restoration Benefit (Sum Insured Refill)
- Consumables Coverage
- Cashless Hospital Network
- Modern Treatment Options
- Waiting Period for Diseases
- Ambulance Coverage (Road & Air)
- Annual Health Checkups
- Maternity and Newborn Cover
- Accidental Cover
- Inflation Protection
- Insurer Reputation & Claim Settlement Ratio
👉 Pro Tip: Always evaluate your family’s medical history, lifestyle, and income level before choosing coverage. If you already have employer health coverage, Jeevan Arogya can serve as a supplementary policy.
9. Who Should Buy LIC Jeevan Arogya?
- Ideal For:
- Families living in semi-urban or rural areas.
- Parents and elderly family members.
- Those who trust LIC’s service and prefer reimbursement-style claims.
- People with limited budgets seeking basic coverage.
- Not Ideal For:
- Individuals seeking cashless hospitalization.
- High-income earners needing large coverage (₹10 lakh+).
- Those looking for return or maturity value.
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10. Expert Opinion
Financial planners often say:
“Buy term insurance for life protection and invest the rest in mutual funds.”
This advice holds true here too. Jeevan Arogya is not a substitute for term or mediclaim policies, but it can serve as an add-on plan to cover fixed daily expenses during hospitalization.
In other words, use it as a financial cushion, not as your primary health cover.
11. Pros and Cons Summary
| Pros | Cons |
|---|---|
| Reliable and backed by LIC (Govt. of India). | No cashless facility. |
| Covers family members, including in-laws. | Low coverage limit. |
| Offers annual benefit increase. | Reimbursement-based claim process. |
| Premium waiver in case of major surgery. | No maturity benefit. |
| Good for small-town families. | Not ideal for large hospital bills. |
12. Frequently Asked Questions (FAQs)
Q1. Does LIC Jeevan Arogya offer cashless hospitalization?
No. It is a reimbursement-based policy. You must pay hospital expenses first and then claim the amount from LIC.
Q2. Can I cover my parents under Jeevan Arogya?
Yes, the policy allows coverage for yourself, spouse, parents, in-laws, and children.
Q3. What is the maximum coverage amount?
The maximum daily hospital benefit is ₹4,000, with a corresponding surgical benefit up to ₹4 lakh.
Q4. Is Jeevan Arogya better than a Mediclaim plan?
No, it should be used as a supplementary plan. Mediclaim offers actual bill reimbursement and cashless facilities.
Q5. Is there any maturity benefit?
No. Jeevan Arogya does not offer maturity or surrender value.
Q6. Who should avoid this plan?
People needing higher coverage, cashless claims, or those living in metro cities with high medical costs.
Conclusion: Should You Buy LIC Jeevan Arogya in 2025?
LIC Jeevan Arogya is a reliable but limited health insurance option from India’s most trusted insurer. It’s best suited for families who value LIC’s credibility and prefer a simple, fixed-benefit structure.
However, for comprehensive coverage, cashless hospitalization, and higher sum insured, pairing it with a regular mediclaim policy from a general insurance company is highly recommended.
- Buy it if you want a safe, additional health buffer for your family.
- Avoid it as your only health cover.
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