LIC had launched its second health insurance related plan which is named as LIC Cancer Cover (Plan-905) on 14th November 2017. LIC’s Cancer Cover is a regular premium payment health insurance plan which provides financial protection in case the Life Assured is diagnosed with any of the stages of Cancer during the policy term. This plan covers both the early stage cancer and significant stage cancer.
It is an online health insurance plan which has low premiums, and it comes with some benefits and add-on features.
It comes with numerable benefits like lump sum benefit, premium waiver benefit, income benefit which would be paid till ten years every month, and many more.
- This plan has one month grace period.
- Loan facility is not available in this policy as the policy will not acquire any paid-up value or surrender value.
- The term period of policy is 10-30 years.
- Tax rebate available under Income Tax under section 80D for premium amount paid.
- It comes with two sum assured plans, i.e., Level 1 and Level 2.
- This policy is non-linked and regular premium paying health insurance plan.
- Basic sum assured is between Rs 10 Lakhs to Rs 50 Lakhs.
- Free look period of 15 days if the policyholder is not satisfied with terms and conditions of the policy.
- The policy will lapse if premium not paid within the grace period, though it can be revived but within two years of first unpaid premium.
- The policy can be bought through online on LIC website.
- No third party agencies are involved in this policy.
- Nominations are available in this plan.
- Policy can be assigned under as per Sec 38 of Insurance Act 1983.
Sum Assured Options-
- Level Sum Insured –
The basic sum insured will remain the same throughout the policy term period.
- Increasing Sum Insured –
The sum insured increases by 10% of basic sum insured each year for first five years starting from the first policy anniversary or until the diagnosis of first event of cancer, whichever is earlier. On diagnosis of any specified cancer as mentioned above, all the claims will be based on the increased sum insured at the policy anniversary coinciding or prior to the diagnosis of the first claim and further increases to this sum insured will not be applicable.
- Lump sum Benefit-
- Early stage cancer– In this stage, the early stage cancer is diagnosed, 25% of sun insured would be paid immediately to be insured.
- Major stage cancer– in this stage of cancer, 100% sum insured would be paid on being diagnosed.
- Premium Waiver Benefit-
- Early stage cancer– In this stage of cancer, first three years premium would be waived and later the premium payment to be continued.
- Major stage cancer– In this stage, all future premium payments would be waived off.
- Income Benefit-
- Early stage cancer benefit is not available.
- Major stage cancer– In this stage, 1% of basic sum insured would be paid every policy month for ten years irrespective of the policy term, i.e., even if policy tenure is over, this benefit amount has been paid.
- Tax Benefit-
Tax benefits are available under section 80D of medical insurance but not under 80C as this is health insurance plan and not life insurance plan.
- No Maturity and Death Benefit is available in this plan.
Eligibility Criteria for this plan-
For 20 years of term period and sum insured of Rs. 10 lakhs would have premiums accordingly:
- Male whose age is 30 years– For level 1 premium is Rs. 1,404 and for level 2 premiums is Rs. 1,841.
- Male whose age is 40 years– For level 1 premium is Rs. 3,044 and for level 2 premium is Rs. 4,224.
- Male whose age is 50 years– For level 1 premium is Rs. 9,936 and for level 2 premium is Rs. 14,101.
- Female whose age is 30 years– For level 1 premium is Rs. 2,856 and for level 2 premium is 3,953.
- Female whose age is 40 years– For level 1 premium is Rs. 5,546 and for level 2 premium is 7,753.
- Female whose age is 50 years– For level 1 premium is Rs. 9,900 and for level 2 premium is Rs. 13,476.
Waiting periods in this plan-
A waiting period of 6 months will be applied from the date of issuance of policy or date of revival of risk cover whichever is later, to the first diagnosis of any stage of cancer.
- 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 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.
All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.