Life Insurance Corporation of India (LIC) has announced three new products: two individual health plans, called Health Shield (Plan 907) and New Cancer Cover (Plan 908), and a retirement product called New Jeevan Dhara-II (Plan 892). The insurer disclosed the launch to the stock exchanges under SEBI's listing rules, and the plans go on sale in India from 19 October 2026.
Both health plans are described as "non-participating, non-linked" pure risk plans. In plain terms, they do not share in LIC's profits, are not tied to market investments, and pay only if an insured event happens. There is no maturity or savings payout.
Health Shield: fixed daily cash and lump sums
Health Shield is a fixed-benefit plan. Instead of reimbursing a hospital bill, it pays pre-set amounts. According to the launch details, it offers a fixed daily hospital cash benefit while the insured person is admitted, and lump-sum payouts for specified major surgeries and critical illnesses.
Other features listed include:
- Cover for family members, with children aged 90 days to 20 years eligible as other insured members
- Entry age of 18 to 65 years for the principal insured
- A policy term and premium-paying term of 15 years each
- Premiums that are guaranteed for the policy term
- A waiver of future premiums for other insured members if the principal insured dies, subject to conditions
- A no-claim benefit that increases the health cover, plus optional riders at extra cost
New Cancer Cover: payouts on diagnosis
New Cancer Cover pays fixed amounts when a specified cancer is diagnosed, regardless of what the treatment actually costs. The launch details state that it pays 25% of the applicable sum assured for early-stage cancer and 100% for major-stage cancer. After a major-stage diagnosis, it also pays a monthly income of 1% of the applicable sum assured for 10 years.
Entry age is 18 to 65 years, maturity age is 28 to 75 years, and the premium-paying term is 10 to 15 years. The minimum basic sum assured ranges from Rs 15 lakh to Rs 35 lakh depending on age, and the maximum is Rs 50 lakh across all policies a person holds under the plan. Buyers can choose a level or an increasing sum assured, and premiums are waived after an eligible diagnosis, subject to conditions.
How fixed-benefit cover differs from a mediclaim policy
Most retail health insurance in India is "indemnity" cover: the insurer pays the actual hospital bill, up to the sum insured, subject to limits such as room-rent caps and co-pay. Fixed-benefit plans like these work differently. They pay a set amount on a defined event, whether the actual expense is higher or lower. They are generally sold alongside, not in place of, indemnity cover, and the exact list of covered surgeries, illnesses and cancer stages is in each plan's policy wording.
New Jeevan Dhara-II, the third product, is a deferred annuity plan that offers a guaranteed lifetime income after a chosen deferment period. Entry starts at 18 years.
LIC has said the plans can be bought through its agents and other intermediaries or online at licindia.in. Full benefit tables, exclusions and premium rates are in the sales brochures; the published launch reports do not give premium figures.