LIC Cancer Cover

LIC Cancer Cover

LIC Cancer Cover

Cancer is now curable with early diagnosis, but the cost of it is exorbitant. LIC Cancer Cover is a health insurance plan that is specifically meant for managing medical expenses concerning cancer treatment. It offers two options, namely level sum insured and increasing sum insured, and covers specific early and major stage cancer types such as prostate cancer, thyroid cancer, bladder cancer, chronic lymphocytic leukaemia, etc. at an early stage, and malignant tumour at a major stage. This article covers this LIC health insurance plan in detail.

Also Read About – LIC Jeevan Arogya

Benefit Options

The plan comes with two benefit options:

  1. Level Sum Insured – here, the basic sum insured will remain the same throughout the policy term.
  2. Increasing Sum Insured – this plan increases the insured amount 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. On diagnosis of any specified Cancer, 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.

The benefits payable under the plan will be based on the Applicable Sum Insured, which will be equal to any of the following:

  • The Basic Sum Insured for policies availed under the first option.
  • The Basic Sum Insured during the first year and Increased Sum Insured thereafter, as per the provisions of the second option.

Discounts Offered

The plan offers:

  • 5% discount for couples on combined premium.
  • 5% loyalty discount on premium for all existing customers.

Benefits

The following benefits are to be provided during the policy year:

Early Stage Cancer

Benefits payable on the first diagnosis of any of the specified Early Stage Cancers (if admissible) include:

  • Lump Sum Benefit – 25% of the Applicable Sum Insured.
  • Premium Waiver Benefit – premiums for the subsequent three policy years or balance policy term (whichever is lower), shall be waived from the policy anniversary coinciding or following the date of diagnosis.

Coverage under the plan is provided for the following early-stage cancers, provided they are established by historical evidence and confirmed by a specialist in the relevant field:

  • Carcinoma-in-situ (CIS)
  • Prostate Cancer
  • Thyroid Cancer
  • Bladder Cancer
  • Chronic Lymphocytic Leukaemia
  • Cervical Intraepithelial Neoplasia

The following are specifically excluded from all early-stage cancer benefits:

  • Tumours which are historically described as benign, borderline malignant, or low malignant potential.
  • Dysplasia, intra-epithelial neoplasia or squamous intra-epithelial lesions.
  • Carcinoma-in-situ of skin and Melanoma in-situ.
  • All tumours in the presence of HIV infection.

Major Stage Cancer

Benefits payable on the first diagnosis of the specified Major Stage Cancer (if admissible) include:

  • Lump Sum – the entirety of Applicable Sum Insured, deducting any previously paid claims in respect of Early Stage Cancer.
  • Income Benefit – apart from the above-mentioned lump sum benefit, Income Benefit of 1% of Applicable Sum Insured. This payment will be remitted following the remittance of the Lump Sum, for a fixed period of next ten years irrespective of the survival of the Life Insured (even if this period exceeds the policy term). In the event of the death of the Life Assured, the remaining payouts will be paid to his/her nominee.
  • Premium Waiver Benefit – all the future premiums will be waived from the next policy anniversary, and the policy will be free from all liabilities except to the extent of Income Benefit as specified above.

Coverage is extended to all malignant tumours that are characterized by the uncontrolled growth and spread of malignant cells with invasion and destruction of normal tissues. This diagnosis must be supported by historical evidence of malignancy. The term cancer may refer to leukaemia, lymphoma and sarcoma.

The following are not considered for major stage cancer benefits:

  • Tumours which are historically described as carcinoma in situ, benign, pre-malignant, borderline malignant, low malignant potential, neoplasm of unknown behaviour, or non-invasive.
  • Any non-melanoma skin carcinoma, except if there are evidence of metastases to lymph nodes or beyond.
  • Malignant melanoma that hasn’t caused invasion beyond the epidermis.
  • Tumours of the prostate, except if historically classified as having a Gleason score of above 6 or having progressed to a minimum TNM classification T2NOMO.
  • Thyroid cancers histologically classified as TINOMO or below.
  • Chronic lymphocytic leukaemia, less than RAI stage 3.
  • Non-invasive papillary cancer of the bladder, historically classified as TANOMO or of a lesser classification.
  • Gastro-Intestinal Stromal Tumours histologically classed as T1NOMO or below and with mitotic count of less than or equal to 5/50 HPFs.
  • All tumours in the presence of HIV infection.

Waiting Period

A waiting period of 180 days would be applicable 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. No benefits will be provided if any stage of Cancer occurs before 180 days from the date of issuance of policy or date of revival.

Survival Period

No benefits are applicable if the Life Assured dies within seven days from the date of diagnosis of any of the specified Early Stage Cancer/Major Stage Cancer. This seven-day survival period includes the date of diagnosis.

Eligibility

The following criteria of eligibility will be applicable for this program:

  • Minimum age at entry – the completion of 20 years
  • Maximum age at entry – 65 years (last birthday)
  • Minimum Policy Term – 10 years
  • Maximum Policy Term – 30 years
  • Minimum age at maturity – 50 years
  • Maximum age of maturity – 75 years
  • Minimum Premium – INR 2400
  • Minimum Basic Sum Insured – INR 10,00,000
  • Maximum Basic Sum Insured – INR 50,00,000

The basic sum insured will be in multiples of INR 1,00,000 only

Payment of Premiums

Premiums could be deposited on a regular basis during the policy term at yearly or half-yearly mode. A condonation of one month but not less than 30 days will be provided for both yearly and half-yearly modes.

Revival

If the premiums aren’t deposited by the end of the grace period, the policy will lapse. However, such policies can be revived during the lifetime of the Life Assured, but within two consecutive years from the date of the first unpaid premium and before the date of maturity. This requires submission of proof of continued insurability to the satisfaction of the Corporation and payment of all the arrears of premiums(s), along with the interest (compounding half-yearly) at the rate fixed by the corporation from time to time. It may be noted that LIC is entitled to accept at original/modified terms or decline the revival of a discontinued policy.

Applicability of Tax

Statutory Taxes imposed on these plans will be applicable in accordance with the stipulated tax norms. The sum of applicable taxes would be payable by the policyholder. Deposits for this purpose wouldn’t be considered for the calculation of benefits payable under the plan.

Read on – Tax Exemptions on Insurance 

Free Look Period

If the policyholder is dissatisfied with the “Terms and Conditions” of the policy, he/she may return the same within 15 days (30 days for online purchases) from the date of receipt of the policy bond by remarking the objections. The corporation will then cancel the policy and return the sum of premium deposited after deducting the proportionate risk premium for the period on the cover.

Explore LIC’s Mutual Fund Option

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Post by Sreeram Viswanath

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