LIC Health Shield (Plan 907): Features, Eligibility and Benefits (2026)

The new Health Shield policy gives a fixed daily hospital cash benefit and income support beyond medical bills as well. Read more about this new plan in detail.

LIC Health Shield Plan 907 - An Overview

LIC Health Shield (Plan 907, UIN 512N369V01) is a non-participating, non-linked, individual health insurance plan. It is a regular premium pure risk plan that gives fixed financial benefits for specified health risks. Unlike a reimbursement-based policy, a hospital cash benefit pays a predetermined amount for each eligible day of hospitalisation, subject to the policy's terms. LIC of India has designed this plan to give the whole family health insurance coverage. An individual can take cover for themselves and add their spouse, children and parents to be covered under the same policy.

What are the Key Features of LIC Health Shield Policy?

• The premiums of LIC Health Shield policy are guaranteed throughout the policy term.

• Policyholders get fixed lump sum or daily benefits irrespective of the actual medical costs.

• One can increase the health cover using No Claim Benefit.

• The plan includes a premium waiver benefit for other insured people in case the original principal insured person passes away.

• The premium waiver benefit for one year is applicable also when any insured person is undergoing surgery that falls under the Category 1 or Category 2 as per the Major Surgical Benefit List.

• Several rider options are available to enhance the protection of the base policy. Riders can be added by paying additional premium on top of the base policy premium.

• There are attractive incentives for higher initial daily benefit.

Note: The benefits under this plan are paid based on the Applicable Daily Benefit (ADB). In the first year, the ADB is the same as the Initial Daily Benefit you choose when you start the policy, and it applies to each family member covered. You can choose an Initial Daily Benefit between ₹2,500 and ₹10,000, in multiples of ₹500.

What is the Eligibility Criteria for LIC Health Shield Plan 907?

What are the Benefits of the LIC Health Shield Plan 907?

There are multiple benefits payable for an in-force LIC Health Shield plan which are all described below in detail.

Benefit on Hospitalisation

There are 6 types of benefits available under the hospitalisation benefit option.

Hospital Cash Benefit (HCB)

If you are hospitalised for more than 24 continuous hours because of an accident causing bodily injury or sickness that begins after your cover starts, LIC pays a fixed daily amount, regardless of the actual cost of treatment.

• General or special ward: You get the Applicable Daily Benefit for each full 24 hours. A part-day also counts if you stay more than 4 hours beyond the last full 24 hours.

• Intensive Care Unit (ICU): You get double the Applicable Daily Benefit for each full 24 hours in the ICU. The same 4-hour rule applies to part-days.

• Mixed stay: If you spend time in both the ICU and a regular ward in the same 24 hours, you are paid at the ICU rate, as long as you spend at least 4 continuous hours in the ICU.

Major Surgical Benefit (MSB)

If you undergo a surgery listed in the policy's Major Surgical Benefit Annexure because of an accident or sickness that begins after your cover starts, LIC pays a lump sum, regardless of the actual cost. The lump sum is a percentage of the Major Surgical Benefit Sum Assured, which is 100 times your Applicable Daily Benefit. The percentage depends on the surgery. The Hospital Cash Benefit is paid in addition, based on your hospital stay.

Three extra benefits come with it:

• Ambulance Benefit: If you used an ambulance for emergency transport, you get an extra ₹1,000.

• Premium Waiver (one year): If the surgery falls under Category 1 or 2 of the annexure, the base policy premiums for all insured members are waived for one year, starting from the next premium due date. This is allowed only once per policy year, and rider premiums are not waived.

• Restoration: If you use up your sum assured in a policy year, the next claim in that year can still be paid, provided it is unrelated to the earlier claims and is for a different body system (such as the heart or the digestive system) and a different procedure.

Day Care Procedure Benefit (DCPB)

This applies when you undergo a listed day care procedure because of an accident causing bodily injury or sickness that begins after your cover starts. If the procedure does not need a long hospital stay, LIC pays a lump sum of 5 times your Applicable Daily Benefit, regardless of the actual cost. The procedure must be medically necessary and done in a hospital or day care centre.

Other Surgical Benefit (OSB)

This applies when you undergo a medically necessary surgery that isn't covered under the Major Surgical Benefit or the Day Care Procedure Benefit and it keeps you in hospital for more than 24 continuous hours. LIC pays 2.5 times your Applicable Daily Benefit for each day of your stay, regardless of the actual cost. A part-day counts if you stay more than 4 hours beyond a full 24 hours. The Hospital Cash Benefit is paid in addition.

Medical Management Benefit (MMB)

If you are admitted to hospital for any of the following conditions that begin after your cover starts, LIC pays a lump sum of 2.5 times your Applicable Daily Benefit, regardless of the actual cost of treatment:

• Dengue

• Malaria

• Pneumonia

• Pulmonary tuberculosis

• Viral hepatitis

The Hospital Cash Benefit is paid in addition based on how long you stay in the hospital.

Extended Hospitalisation Benefit (EHB)

If you stay in hospital continuously for more than 30 days because of an accident or sickness that begins after your cover starts, LIC pays a lump sum of 10 times your Applicable Daily Benefit, regardless of the actual cost. This is paid in addition to any other benefit that applies to the same hospital stay, such as Hospital Cash, Major Surgical, Other Surgical, Day Care or Medical Management Benefit.

Other Benefits

Two other additional benefits of the LIC Health Shield Plan 907 are listed below:

No Claim Benefit

If no claim is made under the policy for three consecutive policy years, LIC adds a No Claim Benefit equal to 10% of your Initial Daily Benefit to your Applicable Daily Benefit. This can repeat every three claim-free years, and there is no limit on the total amount added over the policy period.

• What counts as claim-free: A year is claim-free only if no claim is made for any insured member under the Hospital Cash, Major Surgical, Other Surgical, Day Care Procedure or Medical Management benefits.

• Family members who join later: Their No Claim Benefit is added on the same anniversary as the Principal Insured's, and from then on it is added together for everyone.

Health Check-up Benefit

Once your policy has completed three years, LIC reimburses the cost of a health check-up for each insured member, up to half of the Applicable Daily Benefit. You can claim again every three years until the end of the cover period, as long as the policy is in force. To claim, you need to share the medical report and the bills.

Death Benefit

The death benefit is payable in two conditions, described below:

On Death of Original Principal Insured

When the principal insured person passes away, the Auto Health Cover (AHC) Benefit is applicable. Here, if the original Principal Insured dies, all future premiums for the surviving insured members are waived, starting from the next policy anniversary. The policy continues with a new Principal Insured, and the Applicable Daily Benefit keeps growing through the No Claim Benefit.

Key Conditions are:

• The policy must be in force on the date of death.

• The benefit applies only on the death of the original Principal Insured, not a successor.

• Premiums for any riders are not waived and must still be paid on time. If a rider lapses, it cannot be taken again.

• It does not apply if the Principal Insured dies by suicide within 12 months of the cover start date or of policy revival.

On Death of Another Insured Person

If an insured member other than the Principal Insured dies, no death benefit is paid. The policy continues for the remaining members, and the premium for the deceased member stops from the next premium due date.

Maturity Benefit

LIC Health Shield Plan 907 does not offer any maturity benefits as it is not a life insurance policy but a pure risk health insurance plan. People insured shall not receive any payout on surviving the policy term.

Optional Rider Benefits

The LIC Health Shield Plan 907 is a pure risk health insurance plan that offers the following two riders. These are optional additions which the policyholders can use to enhance their policy’s protection.

LIC’s New Term Assurance Rider

This rider is generally added to term life insurance plans of LIC. For this Health Shield plan the original principal insured and/or the insured spouse can add an optional Term Assurance Rider by paying an extra premium. If the insured person dies during the rider term, LIC pays the rider sum assured. The rider cover can go up to the major surgical benefit sum assured, and the spouse's cover cannot exceed the Principal Insured's.

LIC’s Accident Benefit Rider

The Original Principal Insured and/or the Insured Spouse can add LIC Accident Death Benefit Rider to an in-force policy at any time during the base policy's cover period. If the insured person dies in an accident, LIC pays the Accident Benefit Sum Assured. The cover can go up to the Major Surgical Benefit Sum Assured, and the spouse's cover cannot exceed the Principal Insured's.

Key conditions are:

• At least five years of the premium paying term must remain.

• The person must be under 65 (age nearer birthday).

• The rider cover lasts for the remaining premium paying term or up to age 70, whichever is shorter.

• Premiums for both riders together cannot exceed 30% of the base plan premium for that person.

LIC Health Shield Premium Calculator

This LIC Calculator helps you estimate what you will pay for LIC Health Shield policy before you buy. The premium is worked out separately for each family member and then added up, so the result depends on who you cover.

Details you'll need:

• Age and gender of each member you want to cover

• The Initial Daily Benefit for each member (₹2,500 to ₹10,000, in multiples of ₹500)

• Who the Principal Insured is, and who the other insured members are

• Premium mode: yearly or half-yearly

• Any riders you want to add (Term Assurance or Accident Benefit)

• Whether you are buying online or through an intermediary

How the final premium is worked out:

• Each member's premium depends on their age, gender, daily benefit and whether they are the Principal Insured.

• A rebate applies if the daily benefit is ₹4,000 or more, and a 10% rebate applies for online purchases made directly from LIC.

• Rider premiums are extra. For each person, the total rider premium cannot exceed 30% of their base premium.

• The policy's total premium is the sum of all members' premiums.

• For half-yearly payment, the instalment is the yearly premium multiplied by 0.5090.

Sample Premium Illustration for LIC Health Shield Plan 907

To help you better understand how the Health Shield plan of LIC works with respect to the premiums you pay, here is an example. The sample is for annual premiums for Initial Daily Benefit of ₹5000 for some of the ages for standard lives that shall be covered under the same policy for offline purchase.

LIC Health Shield 907 Plan Details

Some additional and important LIC Health Shield plan details are described below:

Grace Period

You have 30 days to pay a missed yearly or half-yearly premium, and your policy stays active during this time. If you don't pay, the policy lapses, and any claim made during the grace period is paid after deducting the unpaid premium.

Payment of Premium

You can pay your premium yearly or half-yearly. For half-yearly payments, the instalment is the yearly premium multiplied by 0.5090.

The premium for each insured member is payable from the date they join the policy until their cover ends. It depends on:

• Their age and gender

• The Initial Daily Benefit you choose

• Whether they are the Principal Insured or another insured member

Rebates

Given below is how the rebates are applicable for the base plan and riders:

• Rebates for High Initial Daily Benefit (IDB)

If you choose a high Initial Daily Benefit (IDB) of ₹4,000 or more, the premium for each insured member is reduced by a fixed amount. The rebate is larger for the Principal Insured (PI) than for the other insured members, and it increases with the IDB.

• Rebates for Online Sale

If you buy the policy online, directly from LIC, you get a 10% rebate on the tabular premium for the base plan and for any riders you choose. The rebate does not apply if the policy is bought through an agent, corporate agent, broker or insurance marketing firm.

Policy Revival

If your policy lapses because you missed a premium, the Principal Insured can revive it within 5 consecutive years of the due date of the first unpaid premium, as long as the policy term has not ended.

Paid-Up Value

The LIC Health Shield Plan 907 shall not acquire any paid-up value.

Surrender Value and Loan

There is no surrender value or loan available under the new LIC Health Shield plan 907.

Free Look Period

If you're not satisfied with the terms and conditions of the policy, you can return it to LIC within 30 days of receiving the policy document, stating your reasons. The 30 days are counted from the date you receive the electronic or physical copy, whichever comes first. LIC will then cancel the policy and refund your premium, after deducting stamp duty, the proportionate risk premium for the period you were covered, and any medical examination costs.

Policy Termination

Policy on a single life ends at the earliest of these events:

• The premium is not paid within the revival period

• The insured person dies

• The cover period ends

• The lifetime maximum benefit limits are used up

• The free look cancellation amount is paid

• LIC finds misrepresentation, fraud or non-disclosure, as per Section 45 of the Insurance Act, 1938

Policy on more than one life ends at the earliest of these events:

• The premiums for the covered members are not paid within the revival period

• The last surviving insured member dies, their cover period ends, or their lifetime maximum benefit limits are used up

• The free look cancellation amount is paid

• LIC finds misrepresentation, fraud or non-disclosure, as per Section 45 of the Insurance Act, 1938

Is LIC Health Shield Plan 907 Worth Buying?

LIC Health Shield (Plan 907) is a family-focused health insurance plan that pays fixed benefits for hospitalisation, major surgeries and critical illnesses. Premiums are guaranteed for the 15-year policy term, and features such as the premium waiver, no-claim benefit and optional riders add flexibility. It is available from October 19, 2026, and works well as a supplement to your existing health cover.

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