LIC’s Cancer Cover Plan
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LIC Cancer Cover Plan No. 905 – is an explicit, non-participating, and non-linked health insurance plan for the disease like Cancer. The LIC Cancer Cover plan requires regular payment of the premium that can be paid annually or semi-annually until the policy term ranges from 10 to 30 years. Cancer Cover Plan is a fixed benefit health plan that offers payments regardless of the costs incurred in treatment. Cancer Cover Plan ensures financial protection if the insured person is diagnosed during the policy term with any specified Early or Major Cancer. The policy can be purchased both online and offline. Most people find offline buying convenient because of the service. In recent years, cancer cases have increased in India at an alarming rate. In many health insurance policies, Cancer or critical illness is not specifically covered in the plan. As you know that Cancer treatment can take many months of hospitalization, and a normal health insurance plan is not adequate to cover expenses. At such times, the insurance company will provide benefits no matter how high the costs of the treatment. Here is everything you want to know.
| Plan No. |
905 |
| Launch Dated |
14 Nov 2017 |
Do you know?
Cancer cases have gone up in India at an alarming rate. Cancer is ‘eating away’ not just Indians but the country’s economy too. One in 10 Indians will develop Cancer in their lifetime, says WHO.
If a person is diagnosed with Cancer then he will need months of treatment and thus, the financial expenses will also be huge. It is estimated that for Cancer care including diagnosis, radiation, chemotherapy, hospitalization, etc. the cost can be anywhere from Rs. 5 lakhs to Rs. 25 lakhs for just a period of 6 months.
What is Cancer?
Our body’s cells begin to divide without stopping and spread into surrounding tissues.
Cancer can start almost anywhere in our body which is made up of trillions of cells. Generally, human cells grow and divide to form new cells as the body needs them. When cells grow old or become damaged, they die, and new cells take their place.
When Cancer develops in our body, this orderly process breaks down. As cells become more and more abnormal, old, or damaged cells survive when they should die, and new cells form when they are not needed.
What is Cancer Statistics in India?
- 7,84,821 – Cancer-related deaths
- 1 woman dies of Cervical Cancer every 8 minutes in India.
- Every 2 women newly diagnosed with breast cancer, one woman dies of it in India.
- Mortality due to tobacco use in India is estimated at upwards of 3500 persons every day.
- Tobacco (smoked and smokeless) use accounted for 3,17,928 deaths (approx) in men and women in 2018.
- Estimated no. of people living with the disease: around 2.25 million.
- Every year, new Cancer patients registered: Over 11,57,294 lakh
What is the need of this Cancer Cover Plan?
Most of the company does not cover Cancer or Critical Illnesses in the plan. Treatment of Cancer may require many months of hospitalization. The standard health insurance plan is not adequate to cover all these expenses because the treatment of cancer is expensive. It solely depends upon the Cancer stage. You don’t think that there should be a specific health plan to take care of these expenses?
Yes, LIC of India has come up with a Cancer-specific health plan known as Cancer Cover.
What does this Cancer Cover Plan offer?
This plan offers a fixed benefit payout for the treatment of Cancer. If the policyholder is diagnosed with Cancer, this plan will provide benefits irrespective of the costs incurred in the procedure.
It protects in the case of Early Stage and Major Stage Cancer.
LIC’s Cancer Cover Plan is a regular premium plan in which premiums can be paid yearly or half-yearly till policy term ranging from 10 to 30 years. It can be purchased offline as well as online. If you are going online then you have to be smart enough to buy it. If you are going offline then there is someone who will assist you, guide you at every stage. You need not worry. The choice is yours!
How many options are available for this Cancer Cover Plan?
LIC’s Cancer Cover offers 2 plan options. Obviously, the benefits will vary accordingly.
Option 1 – Level Sum Insured:
In this option, the Basic Sum Insured shall remain unchanged throughout the policy term. So, if you choose a cover of Rs. 10 lakhs, means it will be the same until the policy term.
Option 2 – Increasing Sum Insured:
In this option, the amount of cover you choose increases by 10% of the Basic Sum Insured every year until the first 5 years. If the policyholder is diagnosed with Cancer this increase will stop even within the first 5 years. So if you have taken a 30 lakhs cover, it will keep increasing by Rs. 3 lakh every year for 5 years (so it can go to a maximum of Rs. 45 lakhs). If you are diagnosed with Cancer after the increased Cover has reached Rs. 39 lakhs, it would not increase in the next 2 years.
The sum insured can be as high as Rs 50 lakh in this plan. So, if you take a Cover of 50 lakh with option 2 that is of No Use. In this case, option 1 is perfect. Do you know that you pay more premiums for option 2 than the premium for option 1. So, be cautious while selecting the option.
You can understand that the benefits payable under this plan shall be based on the Applicable Sum Insured that shall be equal to:
Option I – Basic Sum Insured for policies taken
Option II – Basic Sum Insured during the first year and increased sum insured after that
What are the benefits of this Cancer Cover Plan?
The benefits are based on the stage of Cancer, you have been detected with:
Early Stage Cancer
You get the following benefits if you are detected with Early-stage Cancer. You cannot decide. There is a specified list provided your medical report should match.
- Lumpsum Benefit: 25% of Applicable Sum Insured will be paid
- Premium Waiver Benefit: Premiums for next 3 policy years or balance policy term whichever is lower, shall be waived off from the policy anniversary coinciding or following the date of diagnosis.
Major Stage Cancer
You get the following benefits if you are detected with Major Stage Cancer. Here also, you cannot decide. There is a specified list provided your medical report should match.
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 Lumpsum amount for a fixed period of next 10 years irrespective of the survival of the policyholder and even if this period of 10 years goes beyond the policy term. This is great financial support. In case of mishappening of the policyholder 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.
Tax Benefit
The premiums paid for LIC’s Cancer Cover are eligible for tax deductions under Section 80D of the Income Tax Act for up to the limit of INR 50,000.
What is Covered in this Cancer Cover Plan?
The following are the conditions that are covered under the LIC Cancer Cover Plan. The diagnosis of the listed below conditions must be verified through histological evidence and be confirmed by a specialist Cancer Doctor.
Carcinoma-In-Situ (CIS)
Carcinoma-in-situ means the existence of malignant Cancer cells that remain within the cell group from which they ascended. It must consist of the full thickness of the epithelium, but not cross basement membranes and invade the surrounding tissue or organ. The diagnosis of the same must be positively recognized by the microscopic examination of fixed tissues.
Prostate Cancer–Early Stage
Early Prostate Cancer that is histologically described using the TNM classification as T1N0M0 with a Thyroid Cancer – Early Stage
All thyroid Cancers which are less than 2.0 cm and histologically classified as T1N0M0 as per the TNM classification.
Bladder Cancer – Early Stage
All tumors of the urinary bladder histologically categorized as TaN0M0 as per the TNM classification.
Chronic lymphocytic Leukaemia –Early Stage
Chronic Lymphocytic Leukaemia classified as stage zero to two as per the Rai staging is acceptable.
Cervical Intraepithelial Neoplasia
Severe Cervical Dysplasia described as Cervical Intraepithelial Neoplasia 3 (CIN3) on cone biopsy.
Major Stage Cancer
A malignant tumor characterized by the unrestrained growth and spread of malignant cells with the purpose of invasion and destruction of normal tissues. This diagnosis must be backed by histological evidence of malignancy. The term cancer includes leukemia, lymphoma, and sarcoma.
Cancer Cover Plan Examples
Let us understand the benefits of this Cancer Cover Plan with the help of a few examples.
Example 1
Suppose Mr. Ajay Kumar, who is 20 years old, has taken this plan with a Basic Cover of Rs. 50 lakhs for a policy term of 30 years with Option 1. He will have to pay Rs. 4,600 + 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. 12.50 lakhs as lumpsum (25% of the Cover amount). The next 3 premiums will be waived off.
Example 2
Now suppose Mr. Ajay Kumar is directly diagnosed with a Major Stage Cancer which is covered by this plan, he will get the following benefits:
Rs. 50 lakhs as lumpsum (100% of the Cover amount) Rs. 50,000 every month for the next 10 years. Even if the policy term is over, he will get this money every month. If he passes away during these 10 years, his nominee will get the monthly payout. All future premiums are waived off
Example 3
Now suppose Mr. Ajay Kumar 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. 12.5 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. 37.5 lakhs as lumpsum (75% of Cover amount as 25% is already paid earlier) Rs. 50,000 every month for the next 10 years. Even if the policy term is over, he will get this money every month. If he passes away during these 10 years, his nominee will get the monthly payout. All future premiums are waived off.
Is there any condition with this Cancer Cover Plan?
Early Stage Cancer Benefit shall be payable only once for the first-ever event, and policyholder shall not be entitled to make another claim for the Early Stage Cancer of the 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.
The 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 policyholder claims for different stages of the same Cancer at the same time, the benefit should 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 occurs before the 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 policyholder 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.
What are the 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) | |
What are the other conditions in this Cancer Cover Plan
- Paid-up Value of LIC’s Cancer Cover: This policy shall not acquire any paid-up value.
- Surrender Value of LIC’s Cancer Cover: No surrender value will be available under this plan.
- Policy Loan: No loan facility will be allowed under this plan.
- Free-look period: You have 15 days (30 days if a policy is purchased online) from the date of receipt of the policy bond, stating the reasons for 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.
What are the Exclusions in this 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 policyholder or any medical procedure undergone by the policyholder 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 policyholder’s organs.
- For any medical conditions suffered by the policyholder or any medical procedure undergone by the policyholder, 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 from nuclear contamination, the radioactive, explosive, or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accidents arising from such nature.
What are the Documents required to buy this Cancer Cover Plan?
The following documents are required to buy this plan:
- Identity Proof – Any government ID like Aadhaar card, Pan card, Voter card, driving license, etc.
- Income Proof – Salary slip of last 3 months or CA certified balance sheet
- Age Proof – PAN Card, Birth Certificate
- Bank Details – Cancelled Cheque
- Address Proof – Electricity, Phone Bill
- Nominee Details – ID Card and Address Proof, if needed
What are the Procedures to Claim under this Cancer Cover Plan?
The following is the claim process of LIC’s Cancer Cover.
Claim Intimation:
You will need to first intimate LIC’s about the claim. This can be done by filing a claim form which is available on the official website of the Life Insurance Corporation. You can also visit the nearest LIC branch and fill the claim intimation form. You will also be required to submit supporting documents like diagnosis report and other medical documents to support your claim.
Claim Processing:
After receiving your claim form and supporting documents, the assessor will verify the same and evaluate if the claim falls in the scope of the policy. If any more documents are required, the policyholder will be asked to submit the same. The requirement of documents may differ case to case wise.
Claim Settlement:
Once the evaluation process of the documents submitted is done by LIC, its decision will be communicated to the policyholder. The claim can either be get approved or rejected. In some cases, the insurance company may ask for more documents before approving. LIC has an excellent claim settlement ratio, and all the claims are settled in a timely manner. The claim amount will be sent through ECS or NEFT to the policyholder.
What is the Documents Requirement for Claiming under this Cancer Cover Plan?
- The document may differ from case to case, but the basic documents required are mentioned below.
- Claim Form duly signed with the Original Policy document
- Hospital Treatment Certificate/Discharge Summary
- Confirmatory Medical Reports like Radiology, Histology and Laboratory Evidence
STEP 1: Log in to LIC’s e-Services Customer Portal
After successfully logging in, you will see a flash message of “Online NEFT Registration facility is now available to Customer Portal Users. To avail, the facility, click here”. 
Here, you have two options to proceed with. Click on the link “Click Here” directly. Or, you can also take the option by clicking on “Individual Policy Details”. If you take this option then the next screen will look like this. 
If you had taken the option of “Click Here” then also, you would have come up to this page. Select Service Request to NEFT Registration from Dropdown Menu like this: 
If you have selected NEFT Registration then the next screen will appear like this: 
Here, you see the required documents along with the conditions you have to follow. Make sure you must have the scan copy of:
You will receive an SMS for 6 digits OTP on your mobile no. like this: 
Here, you have to fill your Bank Account IFSC Code. Other details like Bank Name, Branch Name, and Branch Address will appear automatically. Then, select the account type like Saving or Current. Enter the same account no. in both boxes. Then, fill your PAN Card no. The email address is auto-selected. Click on the “Save” button. Next, the screen will show you a confirmation as Success: 
Click on the “Ok” button. At the bottom, you can see an option for generating NEFT Form is active. Click on it to generate. You will receive a pop up asking for a file name to save the generated file or just click save. The system will give some names automatically. Your file is ready in (pdf) format which you cannot edit easily. We will share with you some convenient ways to edit it. Now, you can log out of the portal. We will make a downloaded pdf file ready to upload. 
Select the PDF file path and it will convert into PPT. A dialogue box will appear to save the converted PPT file. Open it to edit as required. Knowledge of basic PowerPoint function is needed like Change Theme Colour, Change Image Colour as Grey, Remove Hyperlink, Add Text, and Rotate Text, and so on: 
Once you complete editing then save this file as JPG format. How? Press F12 or take the “Save As” option. Give a new file name like NEFT Registration Form and don’t forget to change “Save As Type”. Select “JPEG File Interchange Format” from the drop-down list. 
Now, you have a JPG file ready to upload. But, the problem is its file size. If it is up to 200 KB then it is OK. Otherwise, we have to reduce the size. How? Open this link to reduce the size online – https://www.imgonline.com.ua/eng/compress-image-size.php 
Just select your image, enter 200 in Compress jpg-file, select No in Copy EXIF and other metadata, and leave other default settings. Click on “Ok”, you will get the same file reduced up to 200 KB. This file is ready to upload.
Now, it’s time to accept the conditions and click on the “Submit” button. You will get the final confirmation like – The NEFT Data Capture as per your Service request no. 20211XXXXXX496 will be effected and accordingly intimating will be sent to your mobile number & e-mail id registered with us. 
If you have multiple eligible policies then you can click to the “Yes” button and repeat the process. You will get an SMS confirmation like: 
You will also get e-mail confirmation such as: 
Thus, we are very confident that your NEFT details will be registered correctly without errors. This method is tried and tested.
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