LIC Health plus Vs Health protection plus from LIC

Life Insurance Corporation of India (LIC) launches Health Protection Plus, a unique long term health insurance plan that offers health insurance covers for the entire family (husband, wife and the children) – Hospital Cash Benefit (HCB) and Major Surgical Benefit (MSB) along with a ULIP component (investment in the form of Units) that is specifically designed to meet Domiciliary Treatment Benefit (DTB)/ Out Patient Department (OPD) expenses for the insured members. Hospital Cash Benefit (HCB) is a daily benefit payable in case of hospitalization. It can range from Rs.250/- to Rs.2500/- for the Principal Insured (the person who proposes for insurance). For the Spouse or the children, the maximum amount of HCB is Rs.1500/-. The amount of daily benefit doubles in case of hospitalization in ICU. The IDB (Initial Daily Benefit) is applicable during the first year of risk cover. The amount of daily HCB will increase @ 5% simple per annum every year on policy anniversary until it hits a cap of 1.5 times the initial benefit. Major Surgical Benefit (MSB): In the event of the insured undergoing one of the major surgeries defined in the policy, a lump sum benefit (regardless of the actual costs incurred) equivalent to the percentage of the sum assured mentioned against that surgery will be payable. The sum assured for major surgical benefits will be 200 times of the HCB you choose. Domiciliary Treatment Benefit (DTB): The Principal Insured can claim an amount equivalent to the actual expense he or she has incurred in respect of any domiciliary treatment or to meet the medical expenses incurred over and above the hospital cash/major surgical benefits in respect of either oneself or the others insured under the policy. Both HCB and MSB covers are available subject to a waiting period from the commencement of the risk cover – in respect of each insured member. No death insurance cover is available under the plan. All eligible existing family members are to be covered at the beginning (proposal stage) itself. New members can however be added under certain specified conditions. Modes of Payment allowed are, yearly, half-yearly, & monthly (ECS mode only). The premiums allocated to purchase units will be strictly invested in a Health Protection Plus Fund (Income and Growth – Low Risk). The premiums paid under the policy are eligible for Tax Rebate under Section 80(D) of Income Tax Act, 1961.

Comparing Major differences between the two Health plans from LIC

Health Plus (plan 901)	Health Protection plus Plan (902)
Income tax exemption under sec 80D is only for the premium portion paid for major surgical benefit and Hospital cash benefit.	Here the total premium paid under the policy subject to a limit of Rs.15000 is taken for exemption under section 80D of income tax
----	Lesser health risk charges for major surgical benefits from age 61 onwards
----	Maximum Hospital cash benefit of Rs 2500 can be taken independently, apart from what ihas been already availed under health plus plan 901
Policy ends at age 65 of Principal insured	Policy is for whole life for each of the insured. However you can terminate the policy after age 75 by claiming full fund value as Domiciliary treatment benefit.
Premium is paid till end of term, viz age 65	premium to be paid only till age 65. MSB, HCB cover till age 75 and domiciliary cover for life.
HCB, MSB cover only available upto for Principal insured age 65, spouse age 65, children 25	HCB, MSB cover only available upto for Principal insured age 75, spouse age 75, children 25
Cover stops if premium payment ceases before three years from date of commencement of policy. If premium payment ceases after three years from date of commencement of policy then risk cover condinues until policy fund sufficient to cover regular charges subject to minimum of one annualized premium in the policy fund.	Health cover continues for all insured until fund sufficient to cover all health risk charges.
Policy can be revived with payment of arrears of premium and interest but if within 3 years from date of commencement then have to provide satisfactory evidence of health of all the lives.	Policy can be revived with payment of arrears of premium and interest
Policy can be surrendered after completion of three years from the date of commencemtn of the policy	Policy cannot be surrendered
Fund value if any is paid at the end of the term	Policy continues for the whole life as long as fund is available to recover health risk charges.
In the last policy year no limit for the balance of the fund value to be retained for claiming Domiciliary treatment benefit.	No restricition in the minimum balance in the fund value for claiming Domiciliary treatment benefit after age 75. Policy can be brought to an end immediately by claiming the full amount as domicilary treatment benefit.

Source: www.sunilrams.blogspot.com