LIC Health Insurance Plans

Quick Overview

LIC health insurance plans are withdrawn, so you can’t buy a new policy today. Older LIC products like Jeevan Arogya, Arogya Rakshak, and Health Plus mostly paid daily cash or limited fixed benefits, which can fall short during hospitalization. If you already have one, keep it only as a backup. For primary cover, choose a comprehensive plan from an insurer with strong claim service and lower complaints, and compare room rent rules, copay, waiting periods, and restoration before deciding.

LIC feels like the safe, familiar choice for most families. So when people look for an LIC health plan, they’re really trying to carry that same trust into their hospital expenses.

But here’s the key update: LIC isn’t selling health insurance anymore. All LIC health insurance plans have been withdrawn, which means you cannot buy a new LIC health insurance policy today.

In this article, we’ll break down why LIC discontinued its health insurance plans, provide an overview of the older withdrawn LIC health plans, which plan alternatives are worth considering today, and our honest advice on what to do next.

Why did LIC Discontinue its Health Insurance Plans?

LIC hasn’t provided a public explanation for withdrawing these products. That said, industry dynamics in health insurance can help explain why insurers take such calls.

1) Health insurance is Operationally Heavy

Health insurance is not only about issuing a policy. It also requires strong on ground execution like cashless approvals, smooth claims processing, and hospital coordination at the exact moment a customer needs help.

2) Older Plans were Not Comprehensive

Most LIC health plans were designed as fixed benefit products, not as full reimbursement covers for your actual hospital bill. For instance, LIC Jeevan Arogya clearly states that it pays a lump sum benefit irrespective of actual medical costs, which is a big limitation compared to comprehensive plans today.

3) Customers Expectations have Changed

Most buyers now want one main health policy that can handle large hospital bills with minimal limits and fewer caps. Older benefit style products do not align with how people buy health insurance today.

4) Where LIC Stands Right Now

If you check LICs Health Plans page, there are no active health insurance products listed. What is available today is mostly critical illness riders that can be added to LIC life insurance policies and these are fixed benefit riders, not hospitalization covers.

5) Could LIC Come Back to Health Insurance

LIC has said it is in advanced discussions to enter health insurance by taking a stake in a standalone health insurer. However, it has also clarified that there is no binding agreement yet. While LIC has not named the insurer, multiple media reports suggest it could be ManipalCigna.

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List of LIC Health Insurance Plans

Plan	Key Features / Drawbacks
Jeevan Arogya	Fixed payout plan. Pays ₹1,000–₹4,000/day in hospital; ICU pays 2×. Major surgery covers up to 100× of the daily payout. Day-care up to 5×. But it's not bill-based.
Arogya Rakshak	Fixed payout plan. Pays ₹2,500–₹10,000/day; ICU pays 2×. Major surgery covers up to 100× of the daily payout. Ambulance benefit ₹1,000. Not bill-based.
Health Plus	ULIP + health payouts. Hospital cash ₹250–₹2,500/day (spouse/child up to ₹1,500/day); ICU pays 2×. Major surgery covers up to 200×. The death benefit can be ≤50% fund.

What Plans to Consider Instead of LIC Health Insurance Plans?

When people look for LIC health insurance plans, they’re often looking for one thing: a reliable, government-backed name that feels stable in a claim situation. Since LIC isn’t offering health policies anymore, the closest option is to look at public sector (government-backed) insurers that sell health insurance.

Below are some government-backed insurers worth considering.

Insurer	Claim Settlement Ratio (Avg FY 2022-25)	Flagship Plans
New India	98.91%	Yuva Bharat Health Platinum, Sixty Plus Mediclaim, Premier Mediclaim
United India	93.79%	Individual Platinum, Family Medicare, Medicare Super Top-up
National	94.61%	Mediclaim Plus, Senior Citizen Mediclaim, Super Top-up Mediclaim
Oriental	93.55%	Happy Family Floater Policy Platinum, Health of Privileged Elders policy, Super Health Top-up

That said, reliability isn’t only about who owns the insurer. What matters just as much is how the product works when you actually file a claim, things like clear coverage rules, fewer unpleasant limits, and smooth claims support.

So after reviewing a wider set of insurers and how their policies behave in real claim scenarios, the table lists our overall top options across the market.

Insurer	Flagship Plans	Claim Settlement Ratio (Avg FY 2022-25)
HDFC Ergo	Optima Secure	96.71%
Aditya Birla	Activ One MAX	95.81%
Care Health	Care Supreme	93.13%
Niva Bupa	ReAssure 2.0 Platinum +	91.62%
SBI General	Super Health Platinum Infinite	96.14%

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Confused about the right insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call or chat on WhatsApp with us now!

Ditto’s Take on LIC Health Insurance Plans

LIC health insurance plans are withdrawn, so they are not an option for new buyers today. If you already have LIC’s Arogya Rakshak / Jeevan Arogya / Health Plus or any other health policy, don’t cancel it in a hurry. Use it as a secondary fixed-benefit layer, but buy a proper indemnity policy as your primary cover.

What we recommend:

Buy a comprehensive health policy with strong claim service and lower complaint rates.
Compare plans on room rent limits, copay, waiting periods, and restoration.
If LIC returns to health insurance, wait until the plans are live and the claim experience is proven.

Frequently Asked Questions

Can I port my LIC policy?

Porting is possible as long as your policy is active; older withdrawn fixed-benefit designs may not always port properly. Check if your LIC plan is “indemnity (reimbursement of actual bill-based)” or “fixed-benefit” in the wording, then ask the new insurer if they’ll accept it for portability.

What happens to waiting periods if I port?

If portability is allowed, your waiting periods get carried forward. In practice, the new insurer may still apply fresh waiting periods for upgrades, higher sum insured, or certain new medical conditions.

Where can I find my LIC policy wording?

Look inside your policy pack for the “Policy Conditions” or “Brochure/Policy Wording” pages. If you don’t have it, ask your LIC branch/agent for a soft copy or search the plan name + “policy wording” on LIC’s website.

If LIC comes back to health insurance, will I get an upgrade?

There’s no automatic upgrade to migrate unless LIC explicitly offers a conversion/migration option. Treat any future launch as a separate product decision, not an extension of your old plan.

Last updated on: 25 Jan, 2026