Life Insurance Corporation, with its big data bank has come up with a health related unit linked policy, Health Plus, that gives you number of advantages. Even better, it is reasonably priced. It is worth mentioning in this regard that Health Plus offers a lump sum payment in case if the policyholder has to undergo surgery for critical diseases. Furthermore, the sum assured is capped at Rs 5 lakh.
Another good thing about Health Plus is that it gives hospitalization cash benefit of a maximum of Rs 2,500 per day for 365 days. This is extremely useful when hospitalization does not relate to surgery or the surgery is out of LIC’s ambit. What’s more, family members can be co-opted into the plan. Only limitation of Health Plus being that seniors more than 65 years of age have no cover. Similar to a traditional ULIP, the scheme keeps the unutilized portion of the premium after deducting all expenses in the form of units.
In my opinion, the best part about this scheme is that it allows inclusion of new members at a later date in case of marriage or remarriage of the insured or children who are subsequently born. Point to be noted here is that no claims are entertained in the first 180 days of the Health Plus policy—the exception being accidents. Apart from that, in the first year, the hospital cash benefit is restricted to 18 days, including nine days in the ICU. Last but not the least, you can make claims of up to three times the sum assured in this scheme.