LIC Health Shield (Plan 907) Review: Fixed Cash for Hospital Stays and Surgeries

LIC Health Shield is a fixed-benefit health plan. In simple words, it pays you a fixed amount of cash when you or your family are in hospital or have surgery, whatever the actual bill is. However, it is not a mediclaim policy. So it works best as an extra layer on top of a regular health insurance policy.

Quick facts about LIC Health Shield Plan

ItemDetails
Plan nameLIC’s Health Shield
Plan no. / UIN907 / 512N369V01
Plan typeNon-Par, Non-Linked, Health, Individual, Pure Risk
Launch date19 October 2026
BonusNo
Maturity / surrender valueNone
Where to buyLIC agents, brokers, corporate agents or online at licindia.in

Key features

  • Premium is guaranteed for the full 15 years. It will not go up with age or medical inflation.
  • Pays a fixed daily cash amount and fixed lump sums, regardless of the hospital bill.
  • One policy can cover you, your spouse, your children and your parents.
  • Cover goes up by 10% after every 3 claim-free years (No Claim Benefit).
  • If the main policyholder dies, all future premiums for the family are waived and their cover continues.
  • If anyone has a big surgery (Category 1 or 2), the whole family’s premium is waived for one year.
  • Optional Term Assurance and Accident Benefit riders.
  • Discount for a higher daily benefit, and 10% off if you buy online.

Eligibility of LIC Health Shield Plan

ConditionPrincipal Insured (you)Spouse / ParentsChildren
Entry age18 to 65 years18 to 65 years90 days to 20 years
Cover till age (max)80 years80 years35 years
Policy term15 yearsRemaining term (min 5 years)Remaining term (min 5 years)
Premium paying term15 yearsSameSame
Daily benefit₹2,500 to ₹10,000Up to yoursUp to spouse’s

The Initial Daily Benefit (IDB) is chosen in multiples of ₹500. The total IDB across all your Health Shield policies cannot be more than ₹10,000.

Two rules to note:

  • If both parents are eligible, you must cover both or none. All eligible children must also be covered together.
  • Family members left out at the start cannot be added later. Only a new spouse (after marriage) or a newborn or adopted child can be added later, within 12 months.


Benefits explained in this plan

Every benefit is a multiple of your Applicable Daily Benefit (ADB). The ADB starts equal to the daily benefit you choose and grows with the No Claim Benefit. The table below uses a ₹5,000 daily benefit.

BenefitWhen it paysAmount (at ₹5,000 ADB)Limits
Hospital CashStay over 24 hours₹5,000 a day; ₹10,000 a day in ICU
30 days in year 1, then 90 days a year; 900 days lifetime

Major Surgical Benefit

Any of about 270 listed surgeries

100%, 60%, 40% or 20% of ₹5 lakh, by surgery category

₹5 lakh a year (restores once a year); ₹50 lakh lifetime

Ambulance

With a major surgery

₹1,000

Each major surgery

Day Care Procedure

Listed day-care procedures

₹25,000 lump sum

3 a year; 30 lifetime

Other Surgical Benefit

Surgeries not in the lists, with a 24-hour stay

₹12,500 a day, on top of Hospital Cash

15 days in year 1, then 45 a year; 450 lifetime

Medical Management

Dengue, malaria, pneumonia, pulmonary TB, viral hepatitis A

₹12,500 lump sum

2 a year; 20 lifetime
Extended HospitalisationA single stay over 30 days₹50,000 lump sumOnce a year; 10 lifetime
Health Check-upAfter every 3 yearsActual cost, up to ₹2,500Every 3 years

The Major Surgical Benefit sum assured is 100 times the ADB. Category 1 surgeries (such as heart bypass, CABG) pay 100%. Category 2 pays 60%, Category 3 pays 40% (most joint replacements and angioplasty) and Category 4 pays 20%.

At a network hospital, you can get 50% of the major surgery amount in advance, while still admitted (Quick Cash facility).

No Claim Benefit

If nobody in the policy makes a claim for 3 policy years in a row, every member’s ADB goes up by 10% of their starting daily benefit. There is no upper limit. For example, ₹5,000 becomes ₹5,500 after 3 claim-free years and ₹6,000 after 6.

Death benefit: Auto Health Cover

There is no cash death benefit. But if the original policyholder (Principal Insured) dies, all future premiums for the surviving family members are waived. Their cover continues until the policy ends, with the spouse or eldest adult becoming the new Principal Insured.


Worked example of LIC Health Shield Plan

Let’s understand this plan with the help of an example. Ramesh is 40. He covers himself and his wife Sunita (35) with a ₹5,000 daily benefit. LIC’s sample premiums (offline) are:

MemberAgeYearly premium
Ramesh (Principal Insured)40₹9,446
Sunita (Spouse)35₹6,357
Total₹15,803 a year, fixed for 15 years
Case 1: Suppose Ramesh has a heart bypass (CABG) in year 5

He stays 8 days, 3 of them in ICU.

  • Major Surgical Benefit: 100% of ₹5 lakh = ₹5,00,000
  • Hospital Cash: 3 ICU days x ₹10,000 + 5 ward days x ₹5,000 = ₹55,000
  • Ambulance: ₹1,000
  • Total cash: ₹5,56,000, plus next year’s premium for both of them is waived.

Case 2: Sunita is admitted for dengue for 4 days.
  • Hospital Cash: 4 x ₹5,000 = ₹20,000
  • Medical Management Benefit: ₹12,500
  • Total cash: ₹32,500

This money comes even if their mediclaim policy has already paid the hospital bill. They can use it for the bills that mediclaim doesn’t pay, lost income or travel.

Sample premiums (yearly, ₹5,000 daily benefit, offline)

Age at entryMale (Principal Insured)Female (Principal Insured)
20₹6,555₹5,556
30₹7,195₹6,883
40₹9,446₹9,509
50₹14,895₹13,209
60₹22,350₹17,341

A newborn child adds about ₹3,161 a year. Buying online cuts the premium by 10%. With a daily benefit of ₹4,000 or more, a further flat rebate applies (for example ₹700 off for the Principal Insured at ₹5,000).

Waiting periods of LIC Health Shield Plan

  • General waiting period: 90 days from the start of cover for illness. There is no waiting period for accidents.
  • Specific waiting period: 2 years for 23 listed conditions. These include cataract, hernia, piles, fistula, gall stones, kidney stones, slip disc, varicose veins, tonsils, sinus, benign uterine and prostate problems, knee or joint replacement (not from an accident), and chronic kidney failure.
  • Pre-existing diseases (diagnosed or treated in the 36 months before cover) are not covered unless you disclose them and LIC accepts them.

Main exclusions

  • Pregnancy, childbirth and C-section (ectopic pregnancy is covered)
  • Pre- and post-hospitalisation expenses and OPD treatment
  • Stays under 24 hours (except listed day-care procedures, dialysis and radiotherapy)
  • Cosmetic surgery, dental treatment (unless from an accident), infertility, obesity treatment
  • Treatment outside India
  • AYUSH treatment, unless in a government or government-recognised hospital with a 24-hour stay
  • Alcohol or drug abuse, self-injury, war, hazardous sports

Other policy conditions

ConditionsDetails
Premium paymentYearly or half-yearly
Grace period30 days
RevivalWithin 5 years of the first unpaid premium; waiting periods restart (45 or 90 days)
Surrender, loan, paid-up valueNot available
Free look30 days
RidersTerm Assurance and Accident Benefit, each up to the Major Surgical sum assured; total rider premium max 30% of base premium
TaxHealth insurance premiums usually qualify under Section 80D (old tax regime). Check with your tax advisor.

LIC Health Shield vs other health plans in the market

Health Shield competes with two kinds of products: regular mediclaim (indemnity) plans and hospital daily cash plans. Life insurers like LIC are allowed to sell only fixed-benefit health plans, not bill-paying mediclaim, so it cannot replace one.

FeatureLIC Health ShieldRegular mediclaim (Star Health, Niva Bupa, HDFC ERGO, Care, ICICI Lombard etc.)Hospital daily cash plans / add-ons
What it paysFixed cash per day or per surgeryActual hospital bill, up to the sum insuredFixed cash per day

Cashless at hospital

No (50% advance for big surgeries at network hospitals)

Yes

Usually no
Pre/post hospitalisation, room rent, medicinesNot coveredCoveredNot covered
PremiumGuaranteed for 15 yearsRises with age and with insurer price revisionsUsually renewed yearly at current rates

Cover period

Fixed 15 years

Lifelong renewal

Yearly renewal

Pays even if another policy paid the bill

Yes

Only one bill can be claimed

Yes

Family on one policy

Self, spouse, children, parents

Usually floater for the family

Varies

Premium waiver if main earner dies

Yes, for whole family

Rarely

Rarely

LIC’s older fixed-benefit plans, Jeevan Arogya (₹1,000 to ₹4,000 daily) and Arogya Rakshak, have been withdrawn. Health Shield replaces that gap with a higher daily benefit range.


Pros and cons of LIC Health Shield Plan

ProsCons
Premium fixed for 15 yearsCover ends after 15 years; buying again later means new waiting periods at an older age

Cash paid regardless of bill, even on top of mediclaim

Fixed cash may fall short of a big hospital bill

Whole family on one policy

No cashless claims, no pre/post hospitalisation, no maternity

Premium waiver for family if main earner dies

Pre-existing diseases excluded unless accepted

Big-surgery payouts with restoration and a 1-year premium waiver

Every member must stay over 24 hours for hospital cash

No Claim Benefit adds 10% every 3 claim-free years

No refund, surrender value or maturity benefit

LIC’s claim network and trust

Family members left out at the start can’t be added later

Who should take this plan

  • People who already have mediclaim (personal or from an employer) and want extra cash for costs it doesn’t pay: deductions, room rent caps, travel, an attendant’s stay.
  • Self-employed people and small business owners, who lose income while in hospital.
  • Single-earner families, because the family’s premiums are waived if the main earner dies.
  • Families who use government or Ayushman Bharat hospitals, where the bill is small but other costs are real.
  • People aged 30 to 50 who want a premium that won’t rise for 15 years.


Who should skip it

  • Anyone without a health insurance policy should buy the regular health insurance first.
  • Anyone looking for savings or a return. This plan pays nothing back if you don’t claim.
  • People with ongoing illnesses that LIC may not accept.

Verdict

Health Shield is a good add-on, not a replacement for mediclaim. The guaranteed premium, family cover and premium waiver on the main earner’s death are real strengths. The 15-year limit and fixed payouts are its weak points. A sensible combination is a ₹10 lakh+ mediclaim plan plus Health Shield at a ₹3,000 to ₹5,000 daily benefit.

Disclaimer: This review is based on LIC’s sales brochure (UIN 512N369V01). It is for information only, not financial advice. Read the policy document before buying.

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