Established on September 1, 1956, Life Insurance Corporation of India (LIC) was established by the Government of India when it passed the Life Insurance of India Act in the bid to nationalize the Indian Insurance Industry. Apart from providing life cover, it also provides policies that range from general annuities, pensions, non-linked health, unit-linked, and group insurance policies. As of 2019, it had 8 zonal offices, 113 divisional offices, 2,048 branch offices, and 1,481 satellite offices.
LIC launched its cancer cover policy in November 2017 to provide financial cover to families and individuals suffering from cancer and its after-effects. As we all know, cancer is a disease that can have a serious impact on one's family life, the standard of living, and financial well-being. Through the cancer cover, LIC provides a financially affordable cover that will help patients prepare, and fight the disease successfully.
LIC's Cancer Cover is a non-linked, non-participating health insurance plan that is designed to help an individual cope with the treatment expenses arising out of a cancer diagnosis. The plan comes in two options. In Option 1, the sum insured remains unchanged throughout the term, while in Option 2, the sum insured increases by 10% every year for the first five years until the diagnosis of the first event of cancer or from the first policy anniversary (whichever is earlier). Let's discuss the eligibility criteria and benefits in detail.
Age at entry
Minimum: 20 years
Maximum: 65 years
10 years - 30 years
Age at maturity
Minimum: 50 years
Maximum: 75 years
Rs. 10 Lakhs - 50 Lakhs
Premium Payment Mode
Yearly and Half-yearly
Coverage: The plan provides cover for early-stage cancer and major stage cancer. If the insured is diagnosed with early-stage cancer, (s)he will be paid a lump sum benefit of 25% of the sum insured, while the balance of 100% will be paid if (s)he is diagnosed with major stage cancer. During the major stage, the insured will also receive an income benefit, under which 1% of the sum insured will be paid for a fixed period of 10 years.
Premium: The premium rates under this policy are affordable and remain unchanged for the first 5 years of the policy. When diagnosed with early-stage cancer, the premiums for the next three years or balance policy term (whichever is lower) will be waived off, while in major stage cancer, all the future premiums are waived off till the end of the policy term.
Grace period: If for some unavoidable reasons, the individual is not able to pay the premiums in time, (s)he will be provided a grace period of 30 days to pay it.
The LIC's Cancer cover can be purchased offline through the local branches and through online modes. To purchase the policy through online mode, you need to follow the below steps:
Like any other LIC plan, the claim process for the cancer plan involves the following three steps:
1. Claim intimation: Once the insured is diagnosed with cancer, the insured/nominee needs to intimate the company through mobile or email and should prepare the necessary documents for the claim processing.
2. Documents submission: The insured, or his/her nominee needs to submit the necessary documents for claims processing. These documents are:
3.Decision: Once LIC scrutinizes the documents carefully, it will come to a decision, and will communicate it to the insured/nominee accordingly.
The waiting period from the commencement of the policy to the claim for the first cancer diagnosis is 180 days.
No. According to the policy terms, the cancer patient should survive at least 7 days from the date of diagnosis to be eligible for the benefit.
No. The policy doesn't acquire paid-up value, neither is any surrender value available.
Any type of cancer that has resulted from the below causes are excluded:
Yes. The premium paid receipt can be submitted for income tax deductions under Section 80C of the Income Tax Act, 1961.
Yes, you can appoint your minor-aged brother, however, you need to provide an appointee who is a major for your nominee.
The free-look period is 15 days for direct purchases, and 30 days for online purchases. If you are not satisfied with the terms, you can cancel during this period, and any premium paid will be refunded after deducting the necessary charges.
Last updated on 05-11-2020