LIC’s Health Protection plus is a unique long term health insurance plan that can combine 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.This appears to be a very tricky product and when I contacted the agent for details, he was also not clear on many things.
Out of the X amount you pay part of it will go as health insurance, and normal ULIP charges finally amount left is invested in funds.
Tax Benefit : The premium payable under this product is eligible for Section 80(D) benefit of Income Tax Act, 1961 and not under 80(C).
Tax Benefit : The premium payable under this product is eligible for Section 80(D) benefit of Income Tax Act, 1961 and not under 80(C).
As there is a Rs. 15,000 can be put in to the mediclaim section to save tax above 1 Lac limit of 80(C).
As amount that is left after deduction is then invested in funds and once premium payment period gets completed (Or if one stops premium payment) the fund which got accumulated will be used for providing insurance cover.
No surrender value will be paid.
Out of the X amount you pay part of it will go as health insurance, and normal ULIP charges finally amount left is invested in funds.
Tax Benefit : The premium payable under this product is eligible for Section 80(D) benefit of Income Tax Act, 1961 and not under 80(C).
Tax Benefit : The premium payable under this product is eligible for Section 80(D) benefit of Income Tax Act, 1961 and not under 80(C).
As there is a Rs. 15,000 can be put in to the mediclaim section to save tax above 1 Lac limit of 80(C).
As amount that is left after deduction is then invested in funds and once premium payment period gets completed (Or if one stops premium payment) the fund which got accumulated will be used for providing insurance cover.
No surrender value will be paid.
Please find below the pros and cons of this product
What is HCB? It is Hospital Cash Benefit where a predefined amount is paid daily if insured person is hospitalized.
Initial daily benefit: this is the amount applicable during the first year
The daily benefit will increase @5% simple p.a. of the IDB on each policy anniversary until it hits a cap of 1.5 times the initial benefit.
However there is an overall limit of 365 days of HCB and yearly limit is of 60 days from 2nd year and only 30 days in first year.
What is MSB?It Is major surgical benefit where in if insured person undergoes any surgeries defined by LIC 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.
You can claim it multiple times as well.
Both HCB and MSB amount can be decided by insured person based on family member he wants to include and then premium amount can be decided.
One can add member in to the plan based on limited conditions like marriage or child birth. There is a waiting period of upto 180 days to claim both the charges.
What is DTB?It is Domiciliary Treatment Benefit, in which you can claim expenses incurred in respect of domiciliary treatment.
This is one of the good part of this plan however it comes with lots of condition
1) It can be claimed only after 3 years.
2) Two payment in a year.
3) Benefit is based on cessation of MSB and HCB.
No Death insurance benefit: Only the fund value is paid in even of death of Primary insured person and if policy has more members then it will continue without paying premium however cost will be deducted from fund.
Premium Holidays. If the policy lapses after at least 3 years’ premiums have been paid the Principal Insured has the option of either paying all the due premiums in full or avail of premium holiday by just paying the latest installment premium without any interest. The premium holidays can be availed only as long as the policy fund has a balance of at least one annualized premium at the time of revival.
What is HCB? It is Hospital Cash Benefit where a predefined amount is paid daily if insured person is hospitalized.
Initial daily benefit: this is the amount applicable during the first year
The daily benefit will increase @5% simple p.a. of the IDB on each policy anniversary until it hits a cap of 1.5 times the initial benefit.
However there is an overall limit of 365 days of HCB and yearly limit is of 60 days from 2nd year and only 30 days in first year.
What is MSB?It Is major surgical benefit where in if insured person undergoes any surgeries defined by LIC 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.
You can claim it multiple times as well.
Both HCB and MSB amount can be decided by insured person based on family member he wants to include and then premium amount can be decided.
One can add member in to the plan based on limited conditions like marriage or child birth. There is a waiting period of upto 180 days to claim both the charges.
What is DTB?It is Domiciliary Treatment Benefit, in which you can claim expenses incurred in respect of domiciliary treatment.
This is one of the good part of this plan however it comes with lots of condition
1) It can be claimed only after 3 years.
2) Two payment in a year.
3) Benefit is based on cessation of MSB and HCB.
No Death insurance benefit: Only the fund value is paid in even of death of Primary insured person and if policy has more members then it will continue without paying premium however cost will be deducted from fund.
Premium Holidays. If the policy lapses after at least 3 years’ premiums have been paid the Principal Insured has the option of either paying all the due premiums in full or avail of premium holiday by just paying the latest installment premium without any interest. The premium holidays can be availed only as long as the policy fund has a balance of at least one annualized premium at the time of revival.
Advantages:DTB: Even if you are not hospitalized you can claim expenses.
Section 80(D) tax benefit.
Multiple MSB benefits.
Cover continuation even after if you stop premium.
Disadvantages:
A very complex product and difficult to understand for a common man
Lots of conditions.
High Premium Allocation Charge of 30% in first year and 6% in all subsequesnt years seems to be on a very high and also Health insurance Charge, Policy Administration Charge, Fund Management Charge makes it a very costly proposition considering minimum 50% of the fund needs to be invested in Debt.
Product like this is not expected from LIC which is a Government organization which would do no good to investors.
Will suggest to opt for this plan only after understanding it properly. Although its a ULIP, it works more like a normal mediclaim.
Section 80(D) tax benefit.
Multiple MSB benefits.
Cover continuation even after if you stop premium.
Disadvantages:
A very complex product and difficult to understand for a common man
Lots of conditions.
High Premium Allocation Charge of 30% in first year and 6% in all subsequesnt years seems to be on a very high and also Health insurance Charge, Policy Administration Charge, Fund Management Charge makes it a very costly proposition considering minimum 50% of the fund needs to be invested in Debt.
Product like this is not expected from LIC which is a Government organization which would do no good to investors.
Will suggest to opt for this plan only after understanding it properly. Although its a ULIP, it works more like a normal mediclaim.
Its better to take a normal Mediclaim Policy if the objective is to take Health Insurance
