LIC OF INDIA - HEALTH PLUS PLAN (TABLE 901)

Promoter: Life Insurance Corporation of India (LIC)

Type: Unit Linked Health Insurance Plan with fixed Benefits.

Some of the common questions answered

`In what form my contribution is kept with you?’

• In the form of `units’.

`How are units allotted?’

• Out of your contribution, 30% during the first year and 6 % during subsequent years are apportioned towards premium allocation charges. These include Administration and Mortality (Life Insurance Premium) charges. `Units’ are allotted only on the remaining amount after taking away premium allocation charges.

`What are the medical benefits assured under the plan?’

• Hospital Cash Benefit (HCB)
• Major Surgical Benefit (MSB)
• Domiciliary Treatment Benefit (DTB)

`What are the charges for these benefits’?

• These charges vary with age of the members being covered. They also vary from males to females.

`How are these charges collected?’

• These charges are collected every month by cancelling some of the `units’ in your Policy Fund account depending on the NAV prevailing as on the day of collection.

`What is Domiciliary treatment ?’

• Treatment at your home itself, as is adviced by your doctor

`Does Health-Plus provide cover against Domiciliary treatment also?’

• Yes, after 3 years from the commencement.

`How long the medical benefits continue under Health-Plus plan ?’

• Upto the age of 65 years in case of insured person or spouse of the insured person and 25 years in case of child of the insured person.

`What are the age groups eligible to enter Health-Plus Plan?’

• 18-55 years.

`Is Health-Plus a family cover plan or limited only to the person insured ?’

• It is a family coverage. It can cover insured, insured’s spouse and dependent children. In case insured is still a bachelor at the time of entering the plan, spouse and child(ren) can be admitted as and when he/she gets married and get child(ren).
• In case insured’s spouse and dependent children are right now eligible for entry into the plan but have been omitted for some reason or the other, they cannot be covered in future.

`What is the quantum of Hospital Cash benefits available under Health-Plus ?’

• Rs 250/ to Rs 2500/per day in case of insured.
• Rs 250/ to Rs 1500/per day in case of insured’s spouse /dependent children.

`Is there any limit as regards Hospital Cash Benefit payable under Health-Plus?’

• Yes, HCB payable per person is for a maximum of 18 days per policy year and 365 days for the entire policy duration.

`What is the quantum of Surgical benefits available under Health-Plus ?’

• Upto a maximum of 100 % of the sum assured in a year.

`Is there any limit as regards Surgical benefits available under Health-Plus ?’

• Yes, Maximum Lifetime Surgical Benefit is limited to 3 times the sum insured per member covered.

`What is life-time Benefit under Health-Plus ?’

• Quantum of Surgical benefit available during the entire cover period.

`What do I receive in case I survive the policy term and not availed any medical benefit ?’

• Cash value of the `balance units’ in your policy fund.

`What is Policy Fund ?’

• Out of your yearly contribution decided and paid , Amount left over after allowing premium allocation charges amounting to 30% in the first year and 6% in subsequent yearsconstitutes `Policy Fund’

`How is Policy Fund investment made ?’

• Not less than 50 % invested in Govt/Government Guaranteed Securities
• Not more than 90% invested in Short-term investments such as money market instruments including Government Securities and Corporate Debt
• Not less than 10 % and not more than 50 % in listed Equity Shares.

Whole objective of this investment pattern is to ensure that the investor carries very low risk.

`What is the status of my policy in case I am no more during currency of the plan ?’

• If you have taken Health-Plus on your life only, in case of expiry, your nominee will receive Cash value of the `units’ held in your policy fund.
• If you have included any of your family members as is provided by the plan, in case of your expiry before 3 years from the commencement, your nominee will get cash value of the units held in your policy fund and the contract for life insurance comes to an end.
• If your family members have been included as is provided by the plan, in case of your expiry after 3 years from the commencement, your premium payment stops. But, the policy continues till the fund is sufficient to recover all the charges or till the end of the policy term whichever is earlier. At the end of the policy term, balance in the fund if any shall be refunded.
• In case of expiry of any of the insured members of your family except you, plan status does not change.
• In case of expiry of both yourself (Principal Insured) and your spouse during the policy currency, benefits in respect of your children continue and be paid if there is a major child or will be paid to the legal guardians, if the children are minors.
• In the unfortunate expiry of all of you, i.e., yourself + your spouse + your children, benefits shall go to your legal guardian.

`What is the minimum contribution allowed under Health-Plus ?’

• Higher of Rs 5,000/- P.A or 6 times HCB, if you are the principal insured,
• Higher of Rs 7,500/- P.A or arithmetic sum of 6 times HCB for you + 3 times HCB of one more member that could be either your spouse or your dependent children,
• Higher of Rs 10,000/- P.A or arithmetic sum of 6 times HCB for you + 3 times HCB of additional members that could be your spouse and your dependent children.

`Is there anything like Maximum contribution under Health-Plus?’

• No.

`Can I encash the policy itself instead of waiting for completion of the policy term’?

• Yes, after completion of the third policy anniversary from the commencement. Surrender value payable will be fund value of all the units in your account as on the day of surrender.

`What is the income-tax benefit under the plan ?’

• Premium paid under Market Plus enjoys I.T exemption upto Rs 15,000/- per annum under section 80D of the I.T Act 1961. In case of Senior Citizens, this exemption is allowed upto Rs 20,000/- per annum.

`Can I invest under Health Plus ‘?

• Yes, if you are in the age group of 18-55 years.