LIC's Cancer Cover (Plan 905)

LIC's Cancer Cover (Plan 905): Comprehensive Guide by Ashuram Insurance Expert in Bhadra

When planning for medical emergencies and securing Family Financial Security in Bhadra, standard health insurance often falls short of covering the massive financial toll of critical illnesses like cancer. To bridge this gap, the Life Insurance Corporation of India introduced a highly specialized policy.

As the premier Insurance Advisor in Bhadra, Ashuram Insurance Expert brings you this exhaustive, fully-cited Pillar Page detailing LIC’s Cancer Cover (Plan No. 905).

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1. What is LIC’s Cancer Cover (Plan 905)?

LIC’s Cancer Cover is classified as a Non-linked, Non-participating, Regular Premium, Health Insurance plan. Its primary objective is to provide robust financial protection in the event the Life Assured is diagnosed with any of the specified Early and/or Major Stage Cancers during the policy term.

During its availability, this policy could be purchased offline through Licensed agents, Corporate agents, Brokers, and Insurance Marketing Firms, as well as online directly through the LIC website.

Benefit Options Available at Inception

The plan offered two distinct benefit options, allowing policyholders to choose the type of Sum Insured at inception. This choice was permanent and could not be altered later.

• Option I (Level Sum Insured): Under this option, the Basic Sum Insured remains entirely unchanged throughout the entire policy term. The Applicable Sum Insured equals the Basic Sum Insured.
• Option II (Increasing Sum Insured): Under this option, the Sum Insured increases by 10% of the Basic Sum Insured each year for the first five years, starting from the first policy anniversary, or until the diagnosis of the first event of Cancer, whichever is earlier. Once any specified Cancer is diagnosed, all claims are based on the Increased Sum Insured as of the policy anniversary coinciding with or prior to the diagnosis, and no further increases are applicable.

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2. Eligibility Conditions and Sum Insured Limits

Understanding the exact eligibility criteria is vital for maintaining your policy. Ashuram Insurance Expert has compiled the strict parameters defined by LIC:

Minimum Basic Sum Insured Limits by Age

The minimum coverage allowed depended on the age of the Life Assured at entry:

Maximum Sum Insured Restrictions

The Maximum Basic Sum Insured allowed under this plan is ₹50,00,000. Furthermore, this maximum limit of ₹50 lakhs is an overall limit that takes into account all existing Critical Illness Cover policies (including earlier Cancer Cover versions UIN 512N314V01 and UIN 512N314V02) held by the individual.

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3. Comprehensive Benefit Structure

As your dedicated Mediclaim Policy Advisor in Bhadra, we want you to fully understand the financial payouts associated with this policy. The benefits are payable during the policy year under an in-force policy.

A. Early Stage Cancer Benefits

Upon the first diagnosis of any one of the specified Early Stage Cancers, provided the claim is admissible, the following benefits are payable:

• Lump Sum Benefit: 25% of the Applicable Sum Insured shall be payable.
• Premium Waiver Benefit: Premiums for the next three policy years, or the balance of the policy term (whichever is lower), shall be completely waived starting from the policy anniversary coinciding with or following the date of diagnosis.

Specified Early Stage Cancers Covered:

The diagnosis must be established by histological evidence and confirmed by a specialist.

Exclusions for Early Stage: Benign, borderline malignant, or low malignant potential tumors; dysplasia (other than specified), intra-epithelial neoplasia, or squamous intra-epithelial lesions; Carcinoma in-situ of the skin and Melanoma in-situ.

B. Major Stage Cancer Benefits

Upon the first diagnosis of a specified Major Stage Cancer, the following comprehensive benefits are triggered:

• Lump Sum Benefit: 100% of the Applicable Sum Insured is payable, less any previously paid claims in respect of Early Stage Cancer.
• Income Benefit: An Income Benefit of 1% of the Applicable Sum Insured shall be payable every policy month following the payment of the Lump Sum, for a fixed period of the next ten years. This is payable irrespective of the survival of the Life Insured, and even if this 10-year period extends beyond the policy term. If the Life Assured dies while receiving this benefit, the remaining payouts will be paid to the nominee.
• Premium Waiver Benefit: All future premiums shall be waived from the next policy anniversary, and the policy shall be free from all liabilities except to the extent of the Income Benefit.

Definition of Major Stage Cancer: A malignant tumor characterized by the uncontrolled growth and spread of malignant cells with invasion and destruction of normal tissues, supported by histological evidence. It includes leukemia, lymphoma, and sarcoma.

Exclusions for Major Stage: Carcinoma in situ, benign, premalignant, or borderline malignant tumors; Non-melanoma skin carcinoma (unless metastasized); Malignant melanoma not invading beyond the epidermis; Prostate tumors with a Gleason score of 6 or below; Thyroid cancers classified as T1N0M0 or below; Chronic lymphocytic leukaemia less than RAI stage 3; Non-invasive papillary cancer of the bladder; Gastro-Intestinal Stromal Tumors classified as T1N0M0 or below with a mitotic count of ≤ 5/50 HPFs.

C. Benefit Limits and Critical Conditions

• The Early Stage Cancer Benefit is payable only once for the first-ever event. The Life Assured cannot make another claim for an Early Stage Cancer. However, coverage for Major Stage Cancer continues until the policy terminates.
• Once a Major Stage Cancer Benefit is paid, no payment for any future claims under Early Stage or Major Stage Cancer is admissible.
• The total benefit under the Policy (Early + Major Stage) shall not exceed the maximum claim amount of 220% of the Applicable Sum Insured.
• If different stages of the same Cancer are claimed simultaneously, only the higher claim is admitted. If multiple Cancers are diagnosed in one event, LIC pays only one benefit (the one with the highest benefit amount).

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4. Waiting Period and Survival Period

To ensure the integrity of the insurance pool, LIC imposes strict waiting and survival periods:

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5. Premium Payment, Grace Period, and Sample Rates

• Payment Modes: Premiums can be paid regularly during the policy term at yearly or half-yearly intervals.
• Grace Period: A grace period of 30 days is allowed for both yearly and half-yearly modes from the date of the first unpaid premium. If the premium is not paid before this expiry, the policy lapses and all benefits cease.

Loadings and Rebates

Sample Tabular Annual Premium Rates (Option I: Level Sum Insured)

Rates per ₹1,000/- Sum Insured for 30-Year Policy Term (excl. taxes).

Sample Tabular Annual Premium Rates (Option II: Increasing Sum Insured)

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6. Policy Servicing: Revival, Surrender, and Loans

For existing policyholders navigating their Financial Planning in Bhadra, knowing how to manage a lapsed policy is crucial.

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7. Major Exclusions and Free Look Period

General Exclusions

The Corporation shall not be liable to pay any benefits if conditions result directly or indirectly from:

1. Any Pre-Existing Condition.
2. Diagnosis made within 180 days from the Date of issuance or date of revival.
3. Medical conditions arising from the donation of any of the Life Assured’s organs.
4. Conditions caused directly or indirectly by alcohol or drugs (except under the direction of a registered medical practitioner).
5. Conditions arising from nuclear contamination, radioactive, explosive, or hazardous nuclear fuel materials.

Free Look Period & Taxes

Free Look: If a policyholder was not satisfied with the “Terms and Conditions”, they could return the policy within 30 days from the date of receipt of the policy bond. LIC would cancel the policy and return the premium deposited after deducting proportionate risk premium and stamp duty.

Taxes: Statutory Taxes imposed by the Government of India are payable over and above the premiums. The amount of tax paid is not considered for the calculation of benefits.

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Why Choose Ashuram Insurance Expert in Bhadra?

Dealing with a cancer diagnosis is emotionally and physically draining. During such turbulent times, grappling with complex insurance claims should be the least of your family's worries.

While LIC's Cancer Cover (Plan 905) was discontinued on January 1, 2025, your existing coverage remains a vital pillar of your Long Term Investment Plan. As your trusted LIC Agent Near Ambedkar Chowk, Ashuram Insurance Expert provides unparalleled after-sales service. From tracking your premium due dates to ensuring your 180-day waiting periods are accurately documented, and facilitating fast, compassionate claim assistance for both Early and Major Stage payouts, we stand by the residents of Bhadra.