LIC cancer cover(905)

LIC Cancer Cover Plan - Table No. 905

This is a fixed benefit health plan offering payouts for treatment of cancer. In case the customer is diagnosed with cancer, this plan will offer benefits irrespective of the costs incurred in the treatment. LIC Cancer Cover provides protection in case of Early Stage and Major Stage Cancer.



LIC Cancer Cover Plan is a regular premium plan in which premiums can be paid Yearly or Half yearly for a policy term ranging from 10 to 30 years. The policy can be purchased offline as well as online.
 

LIC Cancer Cover Plan Options

LIC Cancer Cover offers 2 plan options. The benefits will vary accordingly.

Option I - Level Sum Insured: 
The Basic Sum Insured shall remain unchanged throughout the policy term. So if you choose a cover of Rs. 10 lakhs, it stays that way throughout the policy term.

Option II - Increasing Sum Insured: 
The amount of cover increases by 10% of Basic Sum Insured every year for the first five years. In case the policyholder is diagnosed with cancer this increase will stop even within the first 5 years. So if you take a 10 lakhs cover, it will keep increasing by Rs. 1 lakh every year for 5 years (so it can go to a maximum of Rs. 15 lakhs). In case you are diagnosed with cancer after the increased cover has reached Rs. 13 lakhs, it would not increase in the next 2 years.

The benefits payable under the plan shall be based on the Applicable Sum Insured, where the Applicable Sum Insured shall be equal to-  

• Option I - Basic Sum Insured for policies taken
• Option II - Basic Sum Insured during first year and increased sum insured thereafter

LIC Cancer Cover Policy Benefits

The benefits are dependent of the stage of cancer which you have been detected with. They are as follows:

Early Stage Cancer

In case you are detected with Early stage cancer which are specified, you get the following benefits.

• Lumpsum Benefit: 25% of Applicable Sum Insured is paid out
• Premium Waiver Benefit: Premiums for next three policy years or balance policy term whichever is lower, shall be waived from the policy anniversary coinciding or following the date of diagnosis. 

Click for List of Early Stage Cancer covered in LIC Cancer Cover Plan.
 

Major Stage Cancer

In case you are detected with Major stage cancer which are specified, you get the following benefits.

• Lumpsum Benefit: 100% of Applicable Sum Insured less any previously paid claims in respect of Early Stage Cancer is paid to you.
• Income Benefit: 1% of Applicable Sum Insured shall be payable on each policy month following the payment of Lump Sum amount, for a fixed period of next ten years irrespective of the survival of the Life Insured and even if this period of 10 years goes beyond the policy term. In case of death of the Life Assured while receiving this Income Benefit, the remaining payouts, if any, will be paid to his/her nominee.
• Premium Waiver Benefit: All the future premiums shall be waived from the next policy anniversary and the policy shall be free from all liabilities except to the extent of Income Benefit as specified above. 

Click for List of Major Stage Cancer covered in LIC Cancer Cover Plan.
 

LIC Cancer Cover Plan Examples

Let us understand the Benefits of LIC Cancer Care Plan with the help of a few examples.

Example 1

Suppose Ramesh who is 30 years old has taken this plan with a Basic Cover of Rs. 10 lakhs for a policy term of 20 years with Option 1. He will have to pay Rs. 1,190 + taxes every year as annual premiums. The premiums will not change for the 1st five years but may be revised after that.

In case, he is diagnosed with an Early stage cancer which is covered in this plan, he will get the following benefits:

• Rs. 2.5 lakhs as lumpsum (25% of the Cover amount). 
• The next 3 premiums will be waived off

Example 2

Now suppose Ramesh is directly diagnosed with a Major stage cancer which is covered by this plan, he will get the following benefits:

• Rs. 10 lakhs as lumpsum (100% of Cover amount)
• Rs. 10,000 every month for the next 10 years. Even if the policy term is over, he will get this money every month. In case he passes away during these 10 years, his nominee will get the monthly payout.
• All future premiums are waived off

Example 3

Now suppose Ramesh was first diagnosed with Early stage cancer and then later on it developed into a Major stage cancer. In such a scenario, the benefits would be as follows:

On detection of Early stage cancer, he will get the following benefits:

• Rs. 2.5 lakhs as lumpsum (25% of the Cover amount). 
• The next 3 premiums will be waived off

Now in case of Major stage of cancer, he would get the following benefits:

• Rs. 7.5 lakhs as lumpsum (75% of Cover amount as 25% is already paid earlier)
• Rs. 10,000 every month for the next 10 years. Even if the policy term is over, he will get this money every month. In case he passes away during these 10 years, his nominee will get the monthly payout.
• All future premiums are waived off

In case he had taken Option II of this plan, he would have been paid based on the increased sum assured which would be applicable that year. That is the only difference - the payout would be higher.
 

LIC Cancer Cover Plan Conditions - Important

• Early Stage Cancer Benefit shall be payable only once for the first ever event and Life Assured shall not be entitled to make another claim for the Early Stage Cancer of same or any other cancer. However, the coverage for the Major Stage Cancer under the policy shall continue until the policy terminates.
• Once a Major Stage Cancer Benefit is paid no payment for any future claims under Early Stage Cancer or Major Stage Cancer would be admissible.
• Total benefit under the Policy including Early Stage Cancer Benefit and Major Stage Cancer Benefit as specified above shall not exceed the maximum claim amount of 220% of Applicable Sum Insured.
• If the life assured claims for different stages of the same Cancer at the same time, the benefit shall only be payable for the higher claim admitted under the policy.
• If there is more than one Cancer diagnosed in an event, the Corporation will only pay one benefit. That benefit will be the amount relating to the stage of Cancer which has the highest benefit amount.
• Waiting Period in Cancer Cover Plan: A waiting period of 180 days will apply from the date of issuance of policy or date of revival of risk cover, whichever is later, to the first diagnosis of any stage cancer. “Any stage” here means all stages of Cancer that occur during the waiting period. No benefit shall be payable if any stage of Cancer occur before expiry of 180 days from the date of issuance of policy or date of revival and the policy shall terminate.
• Survival Period in Cancer Cover Plan: No benefit shall be payable if the Life Assured dies within a period of 7 days from the date of diagnosis of any of the specified Early Stage Cancer or Major Stage Cancer. The 7 days survival period includes the date of diagnosis.

LIC Cancer Cover Plan Eligibility Conditions & Other Restrictions

	Minimum	Maximum
Age at entry (years)	20 (completed)	65 (last birthday)
Policy term (years)	10	30
Age at maturity (years)	30	75
Basic sum assured(Rs)	Rs. 10,00,000	Rs. 50,00,000
Minimum premium (Rs)	2,400/- for all modes (yearly and half yearly)

The Basic Sum Insured shall be in multiples of Rs. 1,00,000/- only. 

Note: The premiums will not change for the first 5 years of the policy. It is subject to revision after the 5 year period.
 

Other Conditions in LIC Cancer Cover Plan

Paid-up Value of LIC Cancer Cover: This policy shall not acquire any paid-up value.

Surrender Value of LIC Cancer Cover: No surrender value will be available under this plan.

Free look period: You have 15 days (30 days if policy is purchased Online) from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period on cover, (shall not be applicable during the waiting period) and charges for stamp duty. 

Policy Loan: No loan facility will be allowed under this plan.
 

Exclusions in LIC Cancer Cover Plan

• Any Pre-Existing Condition
• If the diagnosis of a Cancer was made within 180 days from the Date of issuance of policy or date of revival of risk cover whichever is later
• For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS related complex or infection by Human Immunodeficiency Virus (HIV);
• For any medical condition or any medical procedure arising from the donation of any of the Life Assured’s organs;
• For any medical conditions suffered by the Life Assured or any medical procedure undergone by the Life Assured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug (except under the direction of a registered medical practitioner)
• For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature.

If you have any questions on this plan, please drop a comment and we would be happy to chip in with our thoughts.