LIC launches benefit based health insurance plan Arogya Rakshak, know how it will work

The Life Insurance Corporation (LIC) of India has introduced a new health insurance plan called Arogya Rakshak, which is 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.

It differs from the conventional health insurance plan in terms of method of payment. While the latter reimburses the actual cost incurred on treatment, Arogya Rakshak provides fixed benefit health insurance cover. It pays a lump sum benefit irrespective of actual medical costs.

This plan is also not a comprehensive one, it works only against certain specified health risks.

One can purchase the plan on an individual as well as family floater basis. It is available for Principal Insured/spouse/parents aged 18 to 65 years and for children of age 91 days to 20 years.

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The cover period for principal insured, spouse and parents is available up to 80 years while in case of children, the same is available only till the age of 25 years.

This policy comes with a feature that increases the overall health cover with time automatically by way of the Auto Step-up benefit.

If more than one member is covered, the policy offers premium waiver for other Insured persons in case of unfortunate death of the original Principal Insured i.e. the policyholder at inception of policy. It also offers 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.

Additionally, the policy provides ambulance and health check-up benefits.

There are optional riders available under the plan such as LIC's New Term Assurance Rider and LIC's Accidental Benefit Rider.