Mediclaim alone may not cover your health

Over the past few days, many cell-phone users have been bombarded with calls or SMSes, urging them to buy a new 'three-in-one' plan from Life Insurance Corporation of India (LIC). The plan offers health, life as well as accident cover, not to mention tax benefits.

LIC Jeevan Arogya, a defined benefit plan, is similar to schemes floated by private life insurers. Simply put, these plans hand out a lump-sump amount (a pre-decided amount) upon hospitalisation of the policyholder. Now the crucial question is: should one go for a defined benefit plan from life insurers?

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