Should you opt for LIC’s Jeevan Arogya or SBI Life’s Hospital Cash?

Are you looking to buy a health insurance product? There is a new one in the market. SBI Life Insurance, a joint venture between State Bank of India and PNB Paribas Cardif, has forayed into the health insurance business by launching Hospital Cash, a fixed benefit health insurance plan.

At face value, SBI Life’s Hospital Cash plan looks very similar to Life Insurance Corporation of India’s (LIC) Jeevan Arogya. However, both have different features and to understand it better let us dissect each feature individually.

SBI Life’s Hospital Cash plan gives fixed daily allowance to the policy holder for every day of hospitalistion, irrespective of the hospital bill amount.

“Daily hospitalisation cash benefit (DHCB) provided under the health plan pay from first day of hospitalisation without any deductible,” says Abhay K Raj, head - products and marketing, SBI Life. Expenses incurred before, during and after discharge are covered through the allowance.

LIC’s Jeevan Arogya is also a fixed benefit plan which covers hospital cash benefit, day care procedure benefit, fixed benefit irrespective of the medical cost, no claim benefit and ambulance expenses.

During the first year of the policy, LIC’s product provides hospitalisation benefits for 30 days while in the second year it is 90 days. Hospital Cash during the first and second years of policy provides hospitalisation benefit for 100 days.

As for payouts, Hospital Cash payout starts from day one of hospitalisation. Coverage of pre-existing diseases after 2 years, guaranteed coverage up to 75 years, premium guarantee for 3 years, enhanced sum assured and increased payouts on each policy anniversary in case of no claim and tax benefit  under sec 80 D of IT Act are the other features of this plan.

It also provides an additional fixed lump sum of Rs 10,000 which is payable to policyholders covering two or more family members under the plan. Bonus upto 40% of enhanced sum assured without increase in premium, discount of 2.5% on premium on renewal of policy, family rebates upto 10% and premium guarantee for three years are other features of the plan.

Under SBI Life’s plan, hospitalisation at (ICU) will be available for 50 days each year of the policy tenure, whereas LIC’s Arogya offers only 380 days of intensive care hospitalisation for the entire policy period. When admitted in ICU, the SBI Life policyholder will receive an amount twice that of DHCB.

Jeevan Arogya provides health insurance cover against certain specified health risks. It covers major surgical expenses too. Hospital Cash plan, on the other hand, does not cover any surgical expenses.

For Jeevan Arogya, the minimum age for entry is and the maximum is 65 and tax benefit is available to policy holders.
Jeevan Arogya is a comprehensive non-linked health insurance plan whereas SBI Life’s product is not a comprehensive one.

According to SBI Life’s appointed actuary Sanjeev Pujari, compared to other health plans Hospital Cash plan is a lower benefit plan and hence it is cheaper too.

MN Rao, MD & CEO, SBI Life said, “Our foray into health insurance is to address the    issues of rising healthcare costs and acute under penetration of health insurance in India.” SBI plan is available online too.