LIC's new Health Shield Plan 907: How does it work - Can it replace regular health insurance? Scheme features, benefits

The Life Insurance Corporation of India (LIC) has introduced a new Health Shield Plan 907 that pays fixed benefits for specified medical events. It is a non-linked, non-participating individual health plan that provides additional financial support during hospitalisation, surgery, and certain medical treatments.

Unlike conventional health insurance, which reimburses eligible medical expenses up to the sum insured, Health Shield pays predetermined benefits, subject to policy terms and conditions. Here is what the plan offers and what buyers should know.

What does LIC Health Shield Plan 907 offer?

The plan has a 15-year policy term, and premiums can be paid over the same period, as per the plan terms. The initial benefit ranges from ₹2,500 to ₹10,000. Premiums depend on the policyholder’s age, the chosen benefit and the family composition.

Key features of LIC Health Shield Plan 907 include:

• Hospital cash benefit: In the event of eligible hospitalisation as per the policy terms, a fixed payout is provided. It is subject to minimum-stay and other associated policy conditions.
• Benefits during surgeries: For unforeseen and unavoidable major surgeries and other eligible procedures, lump-sum payments are made to facilitate seamless treatment, as per the terms.
• Day-care and medical management benefits: Fixed payouts are provided for listed procedures, specified illnesses, and similar listed health complications, subject to policy terms.
• Extended hospitalisation benefit: An additional lump-sum amount may be paid to the plan holder for an eligible hospital stay beyond 30 days.
• No-claim benefit: The applicable daily benefit can increase after three consecutive claim-free years, subject to conditions and how the plan is managed by the plan holder.
• Health check-up benefit: A benefit towards eligible health check-up expenses is available at specified intervals during the plan premium payment period, subject to the applicable terms and conditions on an individual basis.
• Family protection: The plan includes provisions for premium waivers under specified unforeseen circumstances, such as the death of the principal insured, subject to policy conditions.

A 90-day waiting period generally applies to illness-related claims, while accidental injuries are covered from day one, as per the plan’s applicable terms.

Can Health Shield replace regular health insurance?

No. Health Shield is a fixed-benefit plan, distinct from conventional health insurance plans, and is not a substitute for comprehensive indemnity-based cover.

Its payouts follow the policy’s benefit schedule, not the actual hospital bill, so a large medical expense could exceed what the plan pays. Buyers should therefore weigh its pros and cons alongside regular health insurance, which is what covers eligible hospital expenses up to the sum insured, subject to exclusions, waiting periods and other conditions. If in doubt, seek professional guidance.