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Shifting from LIC to Retail, is this the right decision?

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11 Dec, 2023 by  Dhruv Jain

My parents have a joint Jeevan Arogya Policy, they pay 14k from their own pockets and will be paying this for life for a cover (SI) of 1L per person (includes surgical, risk benefits etc).

I've decided to cancel LIC and go with HDFC Ergo Optima Secure after 2 months of thorough research. It is going to cost them 25k pa with a 50k deductible and 5-10 years down the line, I'll be fully paying their premiums.

My question:

1) Is the shift worth it?

2) 30 years down the line, how expensive can this policy get? I spoke to their representative, he said premium increases at 2% per renewal.

Want help with this, thanks.

Health Insurance

1 Answer

12 Dec, 2023
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Hi Dhruv,

Since you are shifting from a life insurance product to a proper health insurance plan, that is any day a good decision...the health policy is a more comprehensive solution and takes care of all your hospitalization & day care procedures in a cashless manner(in most cases). Lic product will not provide you any cashless claims & would most likely be a post event reimbursement based settlement and it is a limited amount cover as you've shared.

So based on the product benefits, health insurance will any day be a little more expensive than similar products offered by life insurance companies.

Also, 30 years down the line, nobody knows how much it is going to cost.

A general thumb rule is that the health insurance premiums rise largely in line with CPI (inflation index) but then , in reality insurance premiums are determined based on a number of factors, which are all dynamic and hence difficult to predict but definitely fixed increase of 2% p.a is completely incorrect.

Also you can explore our 1-1 consultation process with one of the advisors on beshak platform and find out which plan suits your profile the best. Also you would get lifelong hand holding & support related to your health policy.

Hope this explanation helps!

Best wishes

Rana Sahib


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