LIC to Launch New Jeevan Dhara-II, Health Shield and New Cancer Cover From October 19: What to Check Before Buying

Life Insurance Corporation of India has told the stock exchanges that it will start selling three new individual insurance products on October 19. The disclosure, made under Regulation 30 of the SEBI listing rules and dated October 12, names the products as LIC's New Jeevan Dhara-II, LIC's Health Shield and LIC's New Cancer Cover. The filing describes all three as individual, non-participating, non-linked products for the domestic market. It does not give premium rates, sum assured ranges or detailed policy terms, so the specifics in this article come from press coverage of the launch and should be checked against LIC's own product brochures before anyone buys.

The terms "non-participating" and "non-linked" tell buyers something useful. A non-participating plan does not share in the insurer's profits through bonuses, so the benefits are defined in advance rather than depending on the insurer's performance. A non-linked plan is not tied to the stock market, so the value does not rise or fall with an investment fund. Together, they usually mean guaranteed or fixed benefits that are set when the policy is issued, in exchange for the absence of upside. That suits buyers who want certainty, though it also means the returns are typically modest and fixed.

New Jeevan Dhara-II, reported by the Free Press Journal as Plan 892, is a deferred annuity meant to provide income after retirement. The buyer pays premiums, either as a single payment or regularly, during a deferment period and then receives lifetime annuity payments. Guaranteed annuity rates are fixed when the policy begins. Buyers can choose a single-life annuity, which pays for one person's lifetime, or a joint-life annuity, which continues for a spouse. A top-up annuity feature lets buyers add contributions during the deferment period. The minimum entry age is 18, and the deferment period runs from 1 to 15 years depending on the premium option.

For retirement planning, the key questions are about the trade-off between certainty and flexibility. An annuity turns a lump sum into an income that cannot run out, but the capital is usually not returnable on demand, and inflation can erode the real value of a fixed payment over decades. Before choosing a plan, compare the guaranteed annuity rate with alternatives such as other insurers' annuities, and ask whether any return of purchase price is available on death, because that varies by option.

Health Shield, reported as Plan 907, is a health protection plan that pays fixed benefits rather than reimbursing hospital bills. According to the press report, it pays specified amounts for hospitalisation, major surgeries and critical illnesses, including daily hospital cash benefits and lump sums for eligible medical conditions. Adults aged 18 to 65 can buy it, children aged 90 days to 20 years can be covered, the policy term is 15 years, premiums are guaranteed and optional riders are available. This kind of product is different from a standard health policy that pays the actual cost of treatment up to the sum insured. It is better thought of as a supplement that provides cash when a covered event occurs, which can help with expenses that reimbursement plans may not cover, such as income lost during recovery.

New Cancer Cover, reported as Plan 908, is a dedicated cancer protection plan. The press report says it pays 25% of the applicable sum assured for eligible early-stage cancer and 100% for major-stage cancer, and that major-stage cancer also triggers a monthly income of 1% of the applicable sum assured for ten years. Coverage is reported to go up to Rs 50 lakh, subject to eligibility conditions. The entry age and the full list of exclusions were not stated in the sources reviewed, so these are the first things to check.

Fixed-benefit cancer and critical illness plans have a feature that surprises many buyers: the payout depends on how the policy defines each stage. A diagnosis that a doctor calls early may or may not meet the policy's definition of early-stage, and the definition of major-stage cancer is usually narrow. Look for the waiting period before cover begins, the survival period that may apply after diagnosis, whether premiums are waived after a claim, and whether the benefit ends the policy or leaves remaining cover in place.

Buyers can purchase the plans through LIC agents, authorised intermediaries or the company's website, according to the report. Before buying any of the three, read the sales brochure and the benefit illustration, ask for the premium quote at your age, and confirm the free-look period, which in India lets you return a policy within a set number of days if you disagree with its terms. Compare the premium for the same cover with other insurers, and check that the sum assured fits your needs rather than defaulting to the maximum.

None of this is a recommendation to buy or avoid the plans. The filing confirms the product names, the sale date and the structure, while the features above rely on one press account and may differ in the final documents. The sensible approach is to wait for the official brochures on or after October 19, check them against your goals, and consult a licensed adviser if the decision involves a large part of your savings.