LIC Cancer Care Insurance Plan – Should you opt?
LIC Cancer Care Insurance Plan – Should you opt?
LIC is launching its second health insurance plan on 14th November, 2017 (Tuesday) and is called LIC Cancer Care Insurance Plan no. 905. It covers for both early stage cancer and major stage cancer. LIC Cancer Care is an online health insurance plan and comes with low premiums. This insurance plan comes with several benefits including income benefit which would be paid till 10 years every month. What is the sum assured in LIC Cancer Care insurance plan? What are the benefits available in LIC Cancer Care Plan? How does the premiums compare with recent Cancer Care Insurance Plans that came in the last few years? Should you really opt for LIC Cancer Care Insurance Plan no. 905?
Also Read: Top 7 Best Health Insurance Plans in India
Features of LIC Cancer Care Insurance Plan – Plan No.905
LIC Cancer care is 2nd health insurance plan from LIC after it launched LIC Arogya earlier.
It is non-linked and regular premium paying health insurance plan.
Policy term is 10 to 30 years period.
Basic Sum Assured is between Rs 10 Lakhs to Rs 50 Lakhs.
Care ceasing age is 50 years to 75 years of age.
It comes with 2 sum assured plans (Level-1 and Leve-2).
This comes with several benefits like lump sum benefit, premium waiver benefit, and income benefits etc.
Free look period of 15 days if policyholder is not satisfied with T&C of the policy.
1 month Grace period available in this plan.
No loan facility available, as this policy will not acquire any paid-up value or surrender value.
Policy will lapse if premium not paid within grace period, though it can be revived but within 2 years of First unpaid premium.
This policy can be bought through online on LIC website.
No Third Party Agency (TPA) involved.
Policy can be assigned under as per Sec 38 of Insurance Act 1983.
Nomination available in this plan.
Tax rebate available under Income Tax u/s 80D for premium amount paid.
What are the Sum Assured Options available in LIC Cancer Care Insurance Plan – Plan No.905?
This cancer care plan comes with 2 options.
a) Level Sum Assured (Level-1)
Under Level Sum Assured, the basic sum assured remains unchanged through the policy period. Similarly the premium would remain unchanged throughout the policy.
b) Increasing Sum Assured (Level-2)
In this option, the Basic Sum Assured would increase 10% year on year for the first 5 years or till cancer is first diagnosed. In case of cancer diagnosed, there would not be any increase in sum assured. The premium also changes year on year based on change in sum assured.
Benefits from LIC Cancer Care Insurance Plan
All the benefits are classified for early stage cancer and major stage cancer stages.
1) Lump sum Benefit
Early Stage Cancer: In case of early stage cancer is diagnosed, 25% of sum assured would be paid immediately to the insured.
Major Stage Cancer: 100% Sum Assured would be paid on major stage cancer being diagnosed.
2) Premium Waiver Benefit
Early Stage Cancer: In case of early stage cancer diagnosed, first 3 years premium would be waived and later the premium payment to be continued.
Major Stage Cancer: In this case, all future premium payments would be waived off.
3) Income Benefit:
Early Stage Cancer: This benefit is not available in this stage.
Major Stage Cancer: On diagnosis of this stage, 1% of basic sum assured would be paid every policy month for 10 years irrespective of the policy term i.e. even if policy tenure is over, this benefit amount is paid.
4) Maturity Benefit: There are no maturity benefits available in this LIC Cancer Care Insurance Plan.
5) Death Benefit: There are no death benefits available in this Cancer Care Plan.
6) Tax Benefits: Tax benefits are available u/s 80D (Medical insurance) and not under 80C as this is health insurance plan and not life insurance plan.
What are the premiums payables in LIC Cancer Care Insurance Plan?
For a sum assured of Rs 10 Lakhs and for 20 years term, the following would be premiums:
1) Male age of 30 years – Premium is Rs 1,404 for Level-1 and Rs 1,841 for Level-2.
2) Male age of 40 years – Premium is Rs 3,044 for Level-1 and Rs 4,224 for Level-2.
3) Male age of 50 years – Premium is Rs 9,936 for Level-1 and Rs 14,101 for Level-2.
4) Female age of 30 years – Premium is Rs 2,856 for Level-1 and Rs 3,953 for Level-2.
5) Female age of 40 years – Premium is Rs 5,546 for Level-1 and Rs 7,753 for Level-2.
3) Female age of 50 years – Premium is Rs 9,900 for Level-1 and Rs 13,476 for Level-2.
What are the waiting periods in this plan?
A waiting period of 6 months / 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. This would mean that nothing shall be paid under this policy and the policy shall terminate if any stage of Cancer occurs:
At any time on or after the date of issuance of the Policy but before the expiry of 180 days reckoned from that date; or
Before the expiry of 180 days from the Date of Revival
What are the exclusions in LIC Cancer Care Insurance Plan?
Here are the major exclusions in early stage cancer and major stage cancer options.
a) Exclusions in Early Stage Cancer
All tumors which are histologically described as benign, borderline malignant or low malignant potential.
Dysplasia, intra-epithelial neoplasia or squamous intraepithelial lesions.
Carcinoma-in-situ of skin and Melanoma in-situ.
All tumors in the presence of HIV infection are excluded in this insurance plan.
b) Here are the major exclusions from major stage cancer
All tumors which are histologically described as carcinoma in situ, benign, premalignant, borderline malignant, low malignant potential, neoplasm of unknown behavior, or non-invasive, including but not limited to: Carcinoma in situ of breasts, Cervical dysplasia CIN-1, CIN -2 and CIN-3.
Any non-melanoma skin carcinoma unless there is evidence of metastases to lymph 4 nodes or beyond.
Malignant melanoma that has not caused invasion beyond the epidermis.
All tumors of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least clinical TNM classification T2N0M0.
All Thyroid cancers histologically classified as T1N0M0 (TNM Classification) or below.
Chronic lymphocytic leukaemia less than the stage 3.
Non-invasive papillary cancer of the bladder histologically described as TaN0M0 or of a lesser classification.
All Gastro-Intestinal Stromal Tumors histologically classified as T1N0M0 (TNM Classification) or below and with mitotic count of less than or equal to 5/50 HPFs.
All tumors in the presence of HIV infection.
Should you opt for LIC Cancer Care Insurance Plan?
There are several positive points in this insurance plan. This plan is available online, low premiums, several benefits like increasing sum assured and income benefit etc.; However there are few negative points like 6 months waiting period, only individual plan and no family floater plan available etc., LIC is late in the game of launching a Cancer Insurance Plan where there are several leading cancer care plans available in the market. We would update this article with any updates which might be available after the launch of the insurance plan.
This plan details are collected by our analysis team, from agents and various social media sites and this has limited information. The details indicated may change before its launch. Once the plan is launched, we can quickly compare with other cancer insurance plans.
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