Life Insurance Corporation of India or LIC introduced a benefit-based health insurance policy, Arogya Rakshak, on 19 July. The policy is a non-linked, non-participating, regular premium, individual health insurance.
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 family to remain financially independent in difficult times.”
The Arogya Rakshak policy is different from the regular comprehensive health insurance in terms of method of payment reimbursement. Generally, the comprehensive health policies reimburse the actual cost incurred on the medical treatment, up to the limit of the sum insured.
On the other hand, the Arogya Rakshak policy pays a lump sum benefit equal to the sum insured irrespective of actual medical treatment costs.
Individuals can insure themselves (as the principal insured), their spouse, all children, and parents under one policy.
The policy is available for principal insured/spouse/parents aged between 18 and 65, and children of age 91 days to 20 years.
The cover period available for principal insured/spouse/parents is up to 80 years, while the same is available for children up to 25 years only.
Some of the benefits of the policy are listed below
• Flexible benefit limit to choose from
• Flexible premium payment options
• Valuable financial protection is available in the case of hospitalisation, surgery, etc.
• Lump-sum benefit irrespective of actual medical costs
• Increasing health cover by way of Auto Step-up Benefit and No Claim Benefit.
• Suppose more than one member are covered under a policy. In that case, a premium waiver for other insureds is available in case of unfortunate death of the principal insured, i.e. the policyholder at the inception of the policy.
• Premium waiver benefit for one year in the event of any insured undergoing surgery falling under Category I or Category II for certain major surgical benefits.
• Ambulance facility, health check-up benefit is available
Besides, optional riders such as new term assurance rider and accident benefit rider are available under the policy
