LIC Jeevan Arogya Review Should you buy it

LIC Jeevan Arogya Review Should you buy it ?

byHEMANT BENIWALonJUNE 12, 2011

When it comes to financial products no brand can be bigger thanLIC. Recently LIC LaunchedLIC Jeevan Arogya& queries started showering:

1. Deepak kindly advise me of the new lic plan jeevan arogya. Whether I should purchase it.

2. Kiran Please give me details for Jeevan arogya lic plan I want to take this

3. Anup Suggest me about licsmediclaimpolicy jivan arogya..

4. Munish Query on lic Jeevan Arogya can I go with this one or not.

So go ahead and read its complete review features, some special features, limitations, complications, comparison with other healthinsuranceproducts & finally should you buy it.

Theres nothing wrong if we say thatHealth Insuranceshould be purchased to save your savings. On one side theres increase in Life expectancy due to improvement in medical facilities and on the other theres deterioration in health due to life style changes. And accompanied with increasing medical costs and other healthcare expenses, keeping one self adequately insured with proper health insurance cover has become inevitable.

Though individuals start realizing the importance of health insurance but still they are more confused with number of products available in the market. Previously there were only general insurance companies that provide this insurance, then came Standalone health insurance companies and nowLife Insurancecompanies has also started selling health insurance. This confusion is clearly visible among people as, whenever any new plan is launched in the market people gets excited and starts enquiring about the same. Recently LIC has launched a new Health Insurance Plan naming Jeevan Arogya.

So, we have tried to review this from aFinancial Planningperspective and how does Jeevan Arogya stand against existing policies in the industry.

Features & benefits of LIC Jeevan Arogya1. LIC Jeevan Arogya is a defined benefit, non linked plan where the benefits are fixed and will be payable to you in full, irrespective of the actual amount spent on treatment.

2. It covers theHospital cash Benefit (HCB)which means that you will be paid a defined amount for the number of days you have stayed in the hospital. There are 4 variants available under this feature. Rs 1000 per day, Rs 2000 pr day, Rs 3000 per day and Rs 4000/- per day. Your premium and other features and sum assured will be dependent on the variant you have chosen under HCB.

3. Jeevan Arogya covers some 140 defined major surgeries. In case you get operated for any surgery as defined under this policy feature you will be paid lump sum amount which is equal to 100 times the HCB chosen. Which means that if you have chosen a plan of Rs 2000/- per day HCB then your Sum assured under Major Surgical benefit (MSB) feature would be Rs 2 lakh. And this amount will be paid to you irrespective of your actual expenditure on the procedure.

4. There is some 140 day care procedures defined under this plan. If you get operated under that specific procedure than you will be paid 5 times of HCB plan you have chosen. Which means if you have chosen a plan of Rs 2000/- per day HCB then your sum assured under day care Treatment feature would be Rs 10000/-. And this amount will be paid to you irrespective of your actual expenditure on the procedure.

5. In the event of an Insured under this plan, undergoing any surgery not listed under MSB or day care treatment causing the insured hospitalization to exceed a continuous period of 24 hrs with in the cover period, then a daily benefit equal to 2 times the HCB shall be paid for each continuous period of 24 hrs.

Limitations of Jeevan ArogyaIn this weve not covered the basic and general limitations and exclusions that are applicable to almost all the Health Insurance policy. But specific limitations as is there in the features of the policy.

1. Theres annual and Lifetime limit imposed on the Daily cash benefit feature in LIC Jeevan Arogya. In the first year one cannot claim for more than 30 days in case of NON ICU stay and for ICU stay the LIMIT is 15 days. Second year onwards this limit will be increased to 90 days for NON ICU stay and 45 days for ICU stay. In lifetime you can claim maximum of 720 days in case of NON ICU stay and 360 days in case of ICU stay.

2. In Major surgical benefit you can claim only once in one year and 8 times in lifetime.

3. In day care Procedures you can claim maximum for 3 procedures in a year and limit is 24 for lifetime. Also, its not paid if you claim for Hospital Cash Benefit

4. For Term assurance rider your Total Sum assured from other policies and riders should not exceed 25 lakh.

5. For accidental Rider your total sum assured under all other individual and group policies should not exceed Rs 50 lakh.

6. Maximum Sum Assured in the policy is Rs 4 lakh.

Comparison of LIC Jeevan Arogya with other Health Insurance PoliciesIf you draw a comparison between existing policies from Apollo Munich, Bajaj Allianz and Tata AIG, you find these much simpler in terms than LIC. Also the desired benefits which an individual seeks from the policy are higher in certain areas.