LIC vs Star Health Insurance- Choosing the right health insurance plan can be overwhelming, especially with so many providers in the market. Two of the most recognized names in India are LIC (Life Insurance Corporation of India) and Star Health and Allied Insurance. While LIC is a government-backed giant, Star Health is a private company focused solely on health insurance. In this blog post, we’ll compare both insurers in terms of plans, premiums, benefits, limitations, and more to help you decide which one is right for you in 2025.
LIC vs Star Health Insurance Plans Compared
LIC Jeevan Arogya
- Type: Fixed benefit plan (you get a lump sum payout based on hospitalization type)
- Coverage: Rs. 1 lakh to Rs. 4 lakh
- Premiums: Starting from Rs. 6,000 per annum (varies by age)
- Hospital Network: Limited
- Cashless Facility: Available but not widely accepted
- Maternity Cover: No
- Waiting Period for Pre-existing Conditions: 3 years
- Daycare Procedures Covered: 140+
Star Health Comprehensive Insurance Plan
- Type: Indemnity plan (Reimbursed for actual medical expenses/costs)
- Coverage: Rs. 5 lakh to Rs. 1 crore
- Premiums: Starting from Rs. 9,500 per annum for a 30-year-old
- Hospital Network: 14,000+ hospitals across India
- Cashless Facility: Widely accepted
- Maternity Cover: Yes (after 2 years)
- Waiting Period for Pre-existing Conditions: 1-3 years
- Daycare Procedures Covered: 600+
Premium Comparison
Let’s compare annual premiums for a 30-year-old individual with Rs. 5 lakh coverage: Lic vs Star Health Insurance
| Company | Annual Premium (approx) |
|---|---|
| LIC Jeevan Arogya | Rs. 6,000 – Rs. 9,000 |
| Star Health Comprehensive | Rs. 9,500 – Rs. 12,500 |
Observation: LIC is cheaper but offers limited coverage and fixed benefits. Star Health is slightly expensive but covers actual hospital expenses and offers more flexibility.
Who Should Choose Which?
Lic vs Star Health Insurance
| Type of Buyer | Ideal Insurer | Reason |
| Young Professionals | Star Health | Full coverage, digital support |
| Families with Kids | Star Health | Maternity & newborn benefits |
| Rural Residents | LIC | Low premium, government backing |
| Senior Citizens | Star Health | Plans for pre-existing conditions |
| LIC Policyholders | LIC | Add-on to life plans |
Claim Process LIC vs Star health insurance
| Process Step | LIC Jeevan Arogya | Star Health Comprehensive |
| Hospitalization | Notify LIC agent/LIC branch manually | Visit network hospital |
| Documents | Submit physically | Upload via app or online |
| Settlement | Fixed lump-sum paid | Actual expenses reimbursed |
| Processing Time | 5–10 days | 2–5 days (cashless faster) |
Star Health clearly wins in terms of convenience and digital ease.
Tax Benefits (Section 80D)
Both LIC and Star Health policies qualify for Section 80D tax deductions:
- Up to ₹25,000 for individual/family
- Additional ₹25,000 for parents (₹50,000 if senior citizens)
Star Health allows higher deductions due to higher premiums
Brand Identity LIC vs Star Health Insurance
Both brand famous in india for insurance marcket here detailed brand identity summary: LIC vs Star Health Insurance
LIC (Life Insurance Corporation of India)
- Established: 1956
- Ownership: 100% Government-backed
- Primary Focus: Life insurance, investment-linked policies
- Health Insurance Role: Secondary product line (limited offerings)
- USP: Deep rural penetration, high trust among older Indians
Star Health and Allied Insurance
- Established: 2006
- Ownership: Private, now listed
- Primary Focus: Health insurance only
- Health Insurance Role: Core product category
- USP: India’s flagship standalone health insurer—built for the modern age with tech-enabled claims and wide cashless access.
Best LIC Plan in 2025
| Need | Recommended LIC Plan |
|---|---|
| Lifetime regular income | Jeevan Utsav |
| Highest term cover at low cost | Digi Term / Tech‑Term |
| Savings + bonuses | Jeevan Labh / Jeevan Lakshya |
| Whole-life + annual perks | Jeevan Umang |
| Short‑pay with guaranteed payout | Jeevan Utsav |
| Women-focused savings | Aadhaar Shila |
| Child’s future education | Children’s Money‑Back Plan |
| Retirement income | Jeevan Shanti / Akshay / Saral Pension |
Best Star Health Insurance in 2025
| Need | Recommended |
| Budget-conscious urban first-timer | Super Star Essential |
| Family wanting full protection | Family Health Optima |
| Tech-savvy professional | Super Star Preferred/Secure |
| Senior citizen (60–75) | Senior Red Carpet |
| Value full coverage & peace of mind | Super Star Secure |
Also Read This Article- Best Star Health Insurance Plan 2025 – Full Coverage Guide
