LIC Jeevan Arogya (Plan No.903)

LICs Jeevan Arogya (Plan No.903) is a widelyknown healthlinked endowment plan that combines the benefits of life insurance with a healthcover component. Launched to provide a modest premium structure for individuals seeking protection against serious illnesses, it also helps policyholders create a small savings corpus that can be accessed at the end of the policy term.

Who Should Consider Jeevan Arogya?

• Individuals aged 18 to 55 years at the time of entry.
• Persons looking for a single premium that offers both life cover and limited health cover.
• Those who want a simple, nonlinked plan without complex investment options.
• People who want a guaranteed maturity amount if they survive the policy term.

Key Features

• Life Cover: In the event of death during the policy term, the nominee receives the sum assured plus any accrued bonuses.
• Critical Illness Benefit: If the insured is diagnosed with a covered critical illness, a lumpsum payout is made.
• Maturity Benefit: If the policyholder survives the term, the sum assured along with vested bonuses is paid at maturity.
• Premium Payment: Options of yearly, halfyearly, quarterly, or monthly premiums.
• Policy Term: Choose from 10, 15, 20 or 25 years.
• Simplicity: No need for medical underwriting in most cases; a basic health questionnaire suffices.

Sum Assured & Critical Illness Benefit

The plan allows you to select a sum assured ranging from 2Lakhs to 25Lakhs. The critical illness benefit is typically 2530% of the chosen sum assured, payable on diagnosis of a covered disease such as heart attack, cancer, renal failure, or major organ transplant.

How the Benefit Structure Works

Premium Illustration (Example)

For illustration, consider a 30yearold male taking a 20year policy with a sum assured of 10Lakhs, paying yearly premiums.

• Annual premium 73,000 (subject to underwriting & age).
• Critical Illness Benefit 2.5Lakhs (25% of SA).
• Assuming a simple reversionary bonus of 40 per 1,000 SA per year, the total bonus after 20 years 8Lakhs.
• Maturity amount = Sum Assured (10Lakhs) + Bonus (8Lakhs) = 18Lakhs.

Advantages

• Combined Protection: Life cover and a modest health cover in a single policy.
• Guaranteed Returns: Unlike pure term plans, the maturity benefit is assured (subject to bonuses).
• Low Premiums: The plan is priced competitively for the coverage it offers.
• Tax Benefits: Premiums qualify for deduction under Section80C, and the death benefit is taxfree under Section10(10D).
• No Complex Investment Choices: Straightforward for people who prefer simplicity over marketlinked returns.

Limitations to Keep in Mind

• The critical illness sum is relatively small compared with dedicated health plans.
• No provision for partial withdrawals or loans against the policy.
• Bonus rates are not guaranteed and depend on LICs profit performance.
• Coverage is limited to the illnesses listed in the policy document; many chronic conditions are excluded.

Eligibility & Application Process

Eligibility is simple:

1. Age between 18and55years at entry.
2. Resident Indian (NRI options are available with certain restrictions).
3. Minimum health status a brief medical questionnaire is required; extensive medical tests are rarely needed unless the sum assured is very high.

To apply, you can:

• Visit the nearest LIC branch with identity proof, address proof, and recent photographs.
• Use the official LIC website to fill the online application form and upload scanned documents.
• Contact an authorized LIC agent for assistance; they can arrange a home visit for document collection.

Claim Procedure

Death Claim

1. Obtain the death certificate and the policy document.
2. Submit the claim form (available at branches or online) along with the nominees ID proof.
3. LIC processes the claim; standard turnaround is 3045 days.

Critical Illness Claim

1. Get a certified medical report confirming the diagnosis of a covered illness.
2. Fill the critical illness claim form and attach the report, policy document, and ID proof.
3. Submit to the nearest branch or upload through the LIC portal.
4. Upon verification, the lump sum is paid directly to the insureds bank account.

Taxation Overview

• Premium Payment: Deduction up to 1.5Lakhs per annum under Section80C.
• Death Benefit: Taxexempt under Section10(10D) provided the premium does not exceed 10% of sum assured for policies issued after 1April2012.
• Maturity Benefit: Taxfree if the sum assured does not exceed 10Lakhs; otherwise, the excess is taxable as per the applicable slab.

Comparison with Similar Products

When evaluating Jeevan Arogya against other LIC offerings or competitor plans, consider the following dimensions:

Is Jeevan Arogya Right for You?

Jeevan Arogya is best suited for individuals who want a singlepremium product that offers:

• Basic life protection without the need for highvalue endowment returns.
• A modest safeguard against a few major illnesses.
• Taxsaving advantages combined with a guaranteed payout at maturity.

If you require extensive health coverage, a separate mediclaim policy or a dedicated critical illness plan would be more appropriate. Conversely, if your primary goal is pure term protection, a standalone term plan will give you more cover for the same premium.

How to Buy Online

1. Visit LICs official website.
2. Navigate to Insurance Plans Jeevan Arogya (Plan No.903).
3. Enter your age, sum assured, and term to get a premium quote.
4. Click Buy Online, fill in personal details, upload scanned copies of ID and address proof.
5. Make the first premium payment via net banking, debit card or UPI.
6. After verification, you receive the policy document via email and post.

Important Disclaimers

The information presented here is for general guidance only. Premium rates, bonus declarations, and policy terms are subject to change. Always read the official policy document and consult a licensed LIC advisor before purchasing.