LIC Arogya Rakshak (Plan No.906)

Life Insurance Corporation of India (LIC) launched the Arogya Rakshak policy, also known as Plan No.906, as a lowpremium, highcoverage health protection plan geared toward individuals and families seeking financial security against medical expenses and accidental death.

1. Who Should Consider Arogya Rakshak?

• Young professionals and students who need affordable coverage.
• Middleincome families looking for a basic health shield without a hefty premium.
• People with existing health conditions who want a simple, nonparticipating plan.
• Anyone who wants a combined lifecover and healthcover in a single, easytounderstand product.

2. Key Features

2.1 Simple Premium Structure

The policy is designed with a single low premium that remains constant throughout the policy term. Payments can be made annually, semiannually, quarterly, or monthly, giving flexibility to suit cashflow needs.

2.2 Life Cover

In case of death due to any cause (excluding suicide within the first 12 months), the nominee receives a lumpsum amount equal to the sum assured plus any accumulated bonuses. This provides immediate financial relief to the family.

2.3 Critical Illness Benefit

If the insured is diagnosed with any of the listed critical illnesses (e.g., cancer, heart attack, kidney failure), a predetermined sum (usually 50% of the original sum assured) is paid out to help cover treatment costs.

2.4 Hospital Cash Benefit

While admitted to a recognized hospital, the policyholder receives a daily cash allowance (typically200500 per day) for the duration of stay, up to a maximum of 30 days per year. This can be used for ancillary expenses such as meals, transport, or caregiver costs.

2.5 Accidental Death & Disability

An additional accidental death benefit equal to the basic sum assured is paid if death results from an accident. Moreover, a percentage of the sum assured is provided in case of permanent total or partial disability as defined in the policy.

2.6 Tax Benefits

Premiums paid are eligible for deduction under Section80C of the Income Tax Act, subject to the overall ceiling of 1.5lakh per annum. The death benefit is also taxfree under Section10(10D) for qualified policies.

3. Policy Terms & Conditions

The minimum entry age is 18years, and the maximum age at entry is 55years. The policy term can be chosen between 10 and 30 years, depending on the insured's financial planning horizon. The sum assured ranges typically from 2lakh to 10lakh, though higher amounts may be available with additional medical underwriting.

4. How to Apply

1. Online Application: Visit the LIC official website, select Arogya Rakshak (Plan906), fill the eform, upload KYC documents, and pay the first premium online.
2. LIC Branch: Approach any licensed LIC branch, meet a sales officer, submit the proposal form, and provide required documents (identity proof, address proof, age proof, and medical information).
3. Through Agents: Licensed agents can assist with paperwork, eligibility checks, and premium payment options.

5. Advantages Over Competing Plans

• Affordability: Premiums are among the lowest for a combined lifeandhealth cover.
• OneStop Coverage: Life, critical illness, accidental, and hospital cash benefits in a single policy.
• Wide Network: LICs extensive network of hospitals and claim settlement centres across India ensures smoother cashless claim processing.
• Renewability: The policy can be renewed up to age70 without medical reevaluation, subject to paying the renewal premium.

6. Important Considerations

• Medical Underwriting: For sums assured above a certain threshold (e.g., 5lakh), a medical examination may be required.
• Exclusions: Preexisting diseases, selfinflicted injuries, and injuries sustained while under the influence of alcohol or drugs are not covered.
• Grace Period: A 30day grace period is provided for premium payments. Lapse after that leads to loss of coverage.
• Claim Documentation: Prompt submission of hospital discharge summary, doctors certificate, and claim forms is essential for quick settlement.

7. Sample Illustration

Assume a 30yearold male opts for a 20year term with a sum assured of 5lakh, paying an annual premium of roughly 7,500 (subject to age and medical underwriting).

• Death Benefit: 5,00,000 to nominee.
• Critical Illness: 2,50,000 (50% of sum assured) on diagnosis.
• Hospital Cash: 300 per day for up to 30 days per year.
• Accidental Death: Additional 5,00,000.

This example demonstrates how a modest premium can secure multiple layers of protection.

8. Frequently Asked Questions

Q1: Can I increase the sum assured after the policy is issued?

Yes, but only during the freelook period or at the time of policy renewal, and it may require additional medical underwriting.

Q2: Is the policy convertible to a traditional endowment plan?

Plan906 is a nonparticipating term policy and cannot be converted to a participating endowment or ULIP.

Q3: How are bonuses treated?

Since the policy is nonparticipating, it does not accrue reversionary or terminal bonuses. The benefit is fixed at the stated sum assured.

Q4: What is the claim settlement ratio for LIC?

LIC consistently maintains a claim settlement ratio above 95%, reflecting its strong claimhandling capacity.

9. Conclusion

LICs Arogya Rakshak (Plan No.906) offers a pragmatic blend of life protection and healthcare benefits at a price point that fits most middleincome households. While it does not provide the wealthbuilding features of a participating policy, its simplicity, tax advantages, and wide coverage make it an attractive starter plan for anyone looking to safeguard against unforeseen medical and accidental risks.

Prospective buyers should assess their own risk profile, evaluate existing family coverage, and compare the premium against other market options before making a decision.

For the latest premium tables, detailed policy wording, and to start an application, visit the official LIC India website or contact your nearest LIC branch.