Health Insurance 11414 views February 4, 2020

LIC Cancer Cover Plan 905

LIC Cancer Cover is a non-participating and non-linked, health insurance plan. LIC Cancer Cover plan requires regular payment of premium and it ensures financial protection if the insured individual is diagnosed during the term of the policy with any specified Early or/and Major Stage Cancer.

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Features of LIC Cancer Cover Plan 905

  1. The plan can be brought online also by logging in to the official website of LIC
  2. The benefits that shall be payable under the plan shall depend on the Applicable Sum Insured in the policy, where the Applicable Sum Insured shall be equal to either the Basic Sum Insured for policies taken under level sum assured option or basic Sum Insured during the first year and Increased Sum Insured thereafter as taken under increasing sum insured option.
  3. The plan offers you two options to receive the benefit in which you can choose your preferable type of Sum Insured at the inception of the plan. The benefit options are discussed below.

Option 1- Level Sum Insured:

In level, the sum assured the Sum Insured in the policy shall remain the same throughout the term of the policy.

Option II- Sum Insured on the Increasing basis:

In Increasing sum insured, the insured amount in the policy increases by 10% of the Sum Insured in the policy every year for initial five years beginning from diagnosis of cancer or first anniversary, whichever is earlier.

Once the insured person is diagnosed on any specific type of cancer, then all subsequent claims would be based on the last increased sum insured prior to the diagnosis of the ailment. Also, there would be no further increase in the Sum Insured of the policy, once the ailment has been diagnosed.

  1. This plan has survival period in which no benefit shall be payable in case the insured individual dies within a period of 7 days from the date of diagnosis of any specified Early Stage Cancer or any specified Major Stage Cancer. The period of 7 days of survival includes the date of diagnosis of Cancer.
  2. The Premiums in this plan can be paid regularly during the term of the policy at yearly or half-yearly mode. Also, the grace period of one month which shall not be less than 30 days will be provided for both yearly as well as half-yearly payment modes.
  3. LIC company also offers premium discounts on this plan

Benefits Under LIC Cancer Cover Plan 905

The following benefits are payable under a LIC Cancer cover policy during the policy year:

A. Early Stage Cancer: The Benefits which are payable on the very first diagnosis of any of the covered Early Stage Cancers are as follows:

  1. Lump-sum benefit- 25% or one-fourth of the Sum Insured in the policy shall be paid to the insured
  2. The benefit of Premium Waiver – The premiums for the next three years of the policy or the balance term of the policy whichever will be less, shall be waived off from the policy term after the date of the diagnosis of Cancer.

B. Major Stage Cancer- The benefits that are payable on the very first diagnosis of specified cancer at Major stage are as follows:

  1. Lump-Sum- Total sum Insured minus any claims if paid previously in respect of the Early Stage Cancer will be paid.
  2. Income Benefit- Along with the benefit of lump-sum amount, an additional Income Benefit shall also be which will be 1% of the Sum Insured as applicable in the policy. The Income benefit shall be payable on every policy month after the Lump Sum payment is made, for next ten policy years whether or not the insured individual survives and irrespective of even if beyond 10 years of the policy term. If the insured individual dies while receiving the Income Benefit, the remaining insurance pay-out amounts shall be paid to the beneficiary of the insurance policy.
  3. Premium Waiver Benefit- All the future payments of premiums shall be waived off on such insurance policy from the next policy year and the insurance policy shall be free from all the liabilities.

Eligibility for LIC Cancer Cover Plan

The eligibility conditions for buying LIC Cancer Cover Plan include the following:

  1. Minimum Entry Age at is 20 years (completed) and maximum entry age is 65 years.
  2. Minimum Policy Term is10 years and Maximum policy term is 30 years
  3. Minimum age at maturity is 50 years and Maximum age at maturity is75 years
  4. Minimum Premium is Rs.2400/- for all the modes
  5. Minimum Basic Sum Insured is Rs.10,00,000 and Maximum Basic Sum Insured is Rs.50,00,000

The maximum Basic Sum Insured in LIC Cancer Cover Plan 905 shall not exceed an overall limit of Rs.50 lakhs taking into account all the existing Critical Illness Cover policies including the Cancer Cover as well as the Cancer Cover Sum Insured. The Sum assured shall be in multiples of Rs.1,00,000/- only.


In the last few years, the cancer cases have gone up at an alarming rate in India and in many health insurance policies, cancer is not covered specifically. LIC Cancer Cover 905 is a specific disease explicit health plan. Treatment of cancer may require much higher expenditure and hospitalisation for which an insurance plan will not adequate to cover the expenses. Hence you should consider buying a Cancer Cover Plan by LIC to secure yourself from any unfortunate event and be able to get the treatment of Cancer without financial drainage.

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