LIC Health Insurance: A 2025 Guide

Does LIC Sell Health Insurance?

The simple answer is no. As of 2025, LIC does not sell health insurance plans.

Introduction

LIC is currently India’s largest life insurance company, holding nearly 60% of the market share. However, the insurer also ventured into the health insurance space back in 2008.

Since then, it has introduced a few innovative products providing health cover, but in our view, none truly hit the mark. The core features were relatively flimsy, and the overall benefit structure of these plans left much to be desired. Although all of their health insurance plans have been discontinued, talks of LIC acquiring ManipalCigna Health Insurance are underway.

In this article, we’ll walk you through LIC’s journey in health insurance, the plans it once offered, why they were discontinued, and which insurers you can consider instead if you’re looking for reliable health coverage today.

Friendly reminder: It’s easy to get lost comparing policies and premiums. Instead of spending hours on it, why not get personalised insurance advice from Ditto? We offer free consultations with zero spam! Just 30 minutes to clarify all your doubts. Book a free call now!

LIC's Best Health Insurance Plans

Note: Although the plans are no longer available, we’ve reviewed their brochures and policy wordings to highlight the features that might interest you, even if only out of curiosity.

LIC Jeevan Arogya

LIC’s Jeevan Arogya was a fixed-benefit health insurance plan (withdrawn on October 1, 2020) that paid a predetermined lump sum amount instead of reimbursing actual hospital bills. Its features were:

• Daily Hospital Cash Benefit between ₹1,000 and ₹4,000, with the Major Surgical Benefit fixed at 100 times that amount (₹1 lakh to ₹4 lakh), along with coverage for hospitalization, major surgeries, day-care procedures, and other surgeries — with ICU stays eligible for double the daily benefit.
• Coverage for the self, spouse, children, parents, and parents-in-law, with entry ages from 91 days to 75 years (continued up to 80 years for adults and 25 years for children).
• The benefits increased by 5% every year, with an additional bonus for claim-free years
•  90-day waiting period for illnesses (none for accidents) and 2 years for specific treatments
• No maturity or death benefits unless optional riders were chosen.

LIC Arogya Rakshak

LIC’s Arogya Rakshak was a health insurance plan that pays a fixed lump sum amount for hospitalization or surgery, regardless of the actual hospital bill. Its features were:

• Daily hospital cash benefit between ₹2,500 and ₹10,000, with the major surgery cover being 100 times the amount (₹2.5 lakh to ₹10 lakh).
• Covered hospital stays, surgeries, day-care treatments, and certain illnesses like dengue, malaria, and pneumonia, with double payout for ICU stays.
• Coverage for self, spouse, children, and parents, with entry ages ranging from 91 days to 20 years for children and 18-65 years for adults (continued up to 80 years for adults and 25 years for children).
• Benefits increase over time (15% every 3 years + 5% for claim-free years)
• No maturity or death payout unless riders are added.

LIC Health Plus

LIC’s Health Plus was a unit-linked health insurance plan (ULIP) that combined health cover with an investment component. Its key features included: 

• Hospital Cash Benefit and Major Surgical Benefit for the insured family (self, spouse, and children), with policyholders able to choose a daily hospital cash benefit between ₹250 and ₹2,500 for adults (₹1,500 for children), and a major surgical benefit fixed at 200 times that amount, ranging from ₹50,000 to ₹5 lakh depending on the chosen level.
• Domiciliary Treatment Benefit (DTB) was funded by the investment portion of the policy.
• The ULIP portion built a fund value that could be used to meet additional medical expenses or paid out on maturity or death.
• Covered the principal insured (18–55 years), spouse (18–55 years), and children (3 months–17 years), with health cover continuing up to age 65 for adults and 25 for children.
• 180-day waiting period for illnesses (none for accidents), and offered flexibility to add new family members after marriage or childbirth.
• Returns were dependent on the performance of the ULIP fund, and the policyholder bore investment risk.

Drawbacks: Beyond the lack of indemnity coverage, LIC health insurance plans also suffered from rigid benefit structures, lengthy waiting periods, capped payouts, a lack of useful riders such as maternity coverage, and limited coverage for modern treatments. In the case of Health Plus, policyholders even faced market-linked investment risk, which isn’t ideal for health insurance.

Why Choose LIC Family Health Insurance?

Well, you actually can’t. LIC no longer offers active health insurance plans. Instead, you’re better off exploring other leading insurers in the market; ones that combine robust features, affordable premiums, stellar customer service, and sky-high claim settlement ratios.

Many of these insurers carry brand credibility and trust almost on par with LIC, while delivering far better value in today’s health insurance landscape. If you’re confused about which health insurance company to pick, you can refer to our health insurer guide here.

Why Approach Ditto for Health Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Sathishkumar below love us:

• No-Spam & No Salesmen
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Ditto’s Take on LIC Health Insurance

LIC is one of India’s most trusted names in insurance, backed by decades of credibility and customer faith. However, in our opinion, it is, quite literally, a life insurer, as the name suggests. Although it had experimented with health insurance products in the past, the results were underwhelming.

Even if LIC were to re-enter the health insurance space, you’d still be better off choosing a company that specialises in health insurance, either a standalone health insurer like Star Health or Care Health, or a general insurer such as HDFC ERGO or ICICI Lombard. These insurers focus entirely on health products, offering better coverage, smoother claim processes, and more comprehensive benefits, which is exactly what you want when your health is on the line.

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