LIC Cancer Cover plan is a health insurance policy provided by the Life Insurance Corporation (LIC) of India, which provides financial support to the policyholder in case they are diagnosed with cancer. The policy covers all stages of cancer and provides a lump-sum payment to the policyholder on the diagnosis of cancer. This amount can be used to pay for medical treatment, hospitalization expenses, and other related costs. The policy also offers a waiver of premium benefit, which means that the policyholder will not have to pay any future premiums if they are diagnosed with cancer. Additionally, the policy allows for policyholders to avail tax benefits under Section 80D of the Income Tax Act, 1961.
LIC Cancer Cover Plan is a specialized health insurance policy offered by the top life insurance company in India, LIC of India. With medical expenses skyrocketing in the modern era, many people are forced to dip into their savings or take out loans to pay for cancer treatments. According to oncologists, 3 out of 10 Indians are likely to develop cancer by 2020, yet 69% of respondents have no financial preparedness to deal with it, and 56% of respondents are not even aware of any cancer cases. Additionally, 2 out of 3 patients are diagnosed with cancer in stages 3 and 4, and only 21% of patients have cancer-specific insurance coverage. Oncologists estimate the cost of cancer treatment to be at least Rs. 5 lakhs.
The plan can be purchased in addition to any medical reimbursement type of policy, making it a valuable addition to one’s health insurance portfolio.
The Benefits of LIC Cancer Cover Plan in Brief:
Flexibility to Choose Sum Insured: The customer has the option of selecting the Sum Insured, which can be fixed or increased by 10% every year for the first 5 years or until the diagnosis of the first event of cancer, whichever is earlier.
Early Stage Cancer Benefit: In the case of early-stage cancer diagnosis, 25% of the applicable Sum Insured will be paid as a lump sum, and premiums for the next three policy years will be waived off.
Major Stage Cancer Benefit: Upon diagnosis of specified major stage cancer, 100% of the applicable Sum Insured will be payable. However, if you have already claimed 25% of the applicable Sum Insured under Early Stage Cancer, you will receive only 75% of the applicable Sum Insured.
Income Benefit: An Income Benefit of 1% of the applicable Sum Insured shall be payable monthly following the lump sum payment under the Major Stage Cancer Benefit. This fixed Income Benefit will be payable monthly for the next 10 years, regardless of the Life Assured’s survival.
Premium Waiver Benefit: Upon the diagnosis of specified major stage cancer, all future premiums will be waived off.
Waiting Period: There will be a waiting period of 180 days from the policy’s commencement date or revival date. No benefits will be paid if any cancer is diagnosed within 180 days.
Premium Guaranteed for 5 Years: The premiums are guaranteed for 5 years from the policy issuance date. After 5 policy years, LIC reserves the right to revise the premium.
Tax Benefit: Premiums paid under this plan are eligible for tax benefits under Section 80D of the Income Tax Act.
Eligibility Conditions & Other Restrictions
| Minimum | Maximum | |
| Age at entry | 20 years (completed) | 65 years (last birthday) |
| Policy term | 10 years | 30 years |
| Age at maturity | 30 years | 75 years |
| Basic sum assured(Rs) | Rs. 10,00,000 | Rs. 50,00,000 |
| Minimum premium (Rs) | 2,400/- for all modes (yearly and half yearly) |
Exclusions
The LIC Cancer Cover Plan offers coverage for cancer-related medical expenses, but there are certain exclusions that customers should be aware of. First, if the diagnosis of cancer is made within 180 days of policy issuance or revival, it will not be covered. Additionally, any medical conditions or procedures that are a result of AIDS, HIV, or organ donation are not covered. Furthermore, if any medical condition or procedure is caused by alcohol or drugs, except under the direction of a registered medical practitioner, it will not be covered. Finally, the plan does not cover any medical conditions or procedures arising from nuclear contamination or hazardous materials. It is important for customers to carefully review the terms and conditions of the policy to understand these exclusions before purchasing the plan.
LIC Cancer Cover Plan Examples
The advantages of the LIC Cancer Care Plan can be better comprehended by analyzing a few instances.
Example 1
Let’s consider the case of Anil, a 30-year-old who opted for this plan with a Basic Cover of Rs. 20 lakhs for a policy term of 20 years with Option 1. To enjoy the benefits, he will have to pay annual premiums of Rs. 2,380 + taxes. For the first five years, the premiums will remain the same but may be revised after that.
If Anil is diagnosed with an Early stage cancer that falls under the coverage of this plan, he will receive the following benefits:
A lump sum payment of Rs. 5 lakhs (25% of the Cover amount 20Lakh).
The next 3 premiums will be waived off.
Example 2
Assume Anil is diagnosed with a Major stage cancer covered by this plan. Here are the benefits he will receive:
A lump sum of Rs. 20 lakhs, which is 100% of the coverage amount.
Rs. 20,000 will be paid to him every month for the next 10 years, even after the policy term ends. If he passes away during these 10 years, his nominee will receive the monthly payout.
All future premiums are waived off.
Example 3
Suppose Anil had been diagnosed with Early stage cancer which later developed into a Major stage cancer, in such a case, the benefits he would receive are as follows:
Upon detection of Early stage cancer, he will receive the following benefits:
A lump sum of Rs. 5 lakhs (which is 25% of the Cover amount)
The next 3 premiums will be waived off
In case of a Major stage of cancer, he would be entitled to the following benefits:
A lump sum of Rs. 15 lakhs (which is 75% of Cover amount as 25% was already paid earlier)
Rs. 20,000 every month for the next 10 years, even if the policy term is over. In the event of his demise during these 10 years, his nominee will receive the monthly payout.
All future premiums are waived off.
Other Conditions:
The LIC Cancer Cover plan does not have any paid-up value. Similarly, there is no surrender value available under this policy. If you have any objections to the policy, you can cancel it within 15 days (30 days if purchased online) of receiving the policy bond. In such a case, the Corporation will return the premium amount after deducting the proportionate risk premium for the coverage period (excluding the waiting period) and charges for stamp duty. Unfortunately, this plan does not offer a loan facility.
