LIC (Life Insurance Corporation of India) is primarily known for life insurance, but it also offers health insurance (medical insurance) plans. These health plans are designed to provide financial support during medical emergencies rather than reimbursing actual hospitalization bills like traditional health insurance policies.

This guide will explain LIC’s health insurance offerings, how they work, and whether they are the right fit for you.

1. Understanding LIC’s Insurance Categories

✔ Life Insurance – Pays a sum of money to the insured’s family in case of death.

✔ Health Insurance – Provides fixed lump sum benefits for medical conditions, surgeries, or hospital stays.

✔ Combination Plans – Some LIC life insurance policies come with health riders that offer additional medical coverage.

LIC’s health insurance plans do not work like traditional health insurance, where you get reimbursed for hospital bills. Instead, they offer fixed benefits upon diagnosis of a covered medical condition.

2. LIC’s Health Insurance Plans

Here are the key medical insurance policies offered by LIC:

1. LIC’s Arogya Rakshak Plan (Best for General Health Coverage)

A fixed-benefit health plan that pays a lump sum in case of hospitalization or surgery.

Key Features:

• Covers hospitalization, surgeries, and critical illnesses
• Fixed benefits irrespective of the actual hospital bill
• Increasing sum insured over time through Auto Step-Up and No Claim Bonus
• Covers self, spouse, children, and parents

Limitations:

• Does NOT reimburse actual hospital expenses
• Daily hospitalization allowance is limited

Best for those who want a fixed payout for medical expenses without dealing with claim reimbursements.

2. LIC’s Cancer Cover Plan (Best for Cancer-Specific Protection)

A special plan that provides financial support for cancer treatment.

Key Features:

• Covers both early-stage and major-stage cancer
• Lump sum payout for diagnosis
• Premium waiver in case of major cancer
• Regular payouts to cover treatment expenses

Limitations:

• Only covers cancer – No coverage for other diseases or hospitalization
• No hospitalization reimbursement

Best for those who want cancer-specific coverage to manage treatment costs.

3. LIC’s Jeevan Arogya Plan (Discontinued but Previously Offered)

A family floater health plan that worked like a daily hospital cash benefit policy.

• Fixed daily benefit for hospitalization
• Surgical benefit payouts
• Flexible sum insured options

No longer available for new customers.

LIC’s health insurance is ideal for those who prefer guaranteed payouts rather than claim-based reimbursements.

4. When Should You Consider LIC’s Health Insurance?

✔ If you already have life insurance with LIC and want additional medical benefits.

✔ If you want a lump sum payout instead of medical bill reimbursements.

✔ If you are looking for cancer-specific insurance.

✔ If you want to cover family members (spouse, children, parents) under one plan.

5. Who Should Get a Traditional Health Insurance Plan Instead?

• If you want cashless hospitalization or reimbursement of actual medical bills.
• If you need pre-existing disease coverage (LIC plans usually have long waiting periods).
• If you want OPD expenses covered (doctor visits, medicines, lab tests, etc.).
• If you need a plan that works with a large hospital network for direct settlement.

For full-fledged health insurance, consider policies from Star Health, ICICI Lombard, Niva Bupa, HDFC Ergo, etc.

6. Final Verdict – Does LIC Offer Medical Insurance?

✔ YES, LIC offers health insurance plans like Arogya Rakshak and Cancer Cover, but these are fixed-benefit plans, not reimbursement-based health insurance.

✔ LIC’s health plans are great for:

• Fixed payouts for hospitalization and surgery
• Cancer-specific coverage
• Additional health benefits alongside life insurance

If you want a plan that covers ALL hospital bills, medications, and OPD visits, you should buy a traditional health insurance plan from another provider.

Bottom Line: LIC provides limited but useful health insurance options, and whether you should choose them depends on your specific needs. If you want a full-fledged medical policy, look at traditional health insurers instead.