LIC Cancer Care Plan (Table No-905) – Why Should Choose?

LIC launched a new health Insurance (plan no 905) on 14 Nov 2017 for cancer care. It is a non-linked and regular premium payment insurance which provides financial protection with fixed benefits in case the Life Assured is diagnosed with any of the specified stages of Cancer policy term (subject to certain terms and conditions). According to the survey, 3 out of 10 people may be suffering from cancer till 2020. So, LIC cancer care plan has low premiums. This plan covers all stages of cancer either early-stage cancer or major stage cancer. It has several benefits including income benefit.

Here are some questions which will arise in your mind. So let’s discuss in detail.

  • What is the Sum Assured in LIC Cancer care plan?
  • What are the benefits available in LIC cancer care plan?
  • How does the premium?
  • Why should you choose LIC cancer care plan?

Types of Sum Assured in LIC Cancer Care Plan:

The plan offers two types of Sum Assured wherein you can choose the option at the time of buying this plan and premium varies based on the option.

Option I – Level Sum Assured

The Basic Sum Assured and premium will also remain same throughout the policy period and policy terms.

Option 2 – Increasing Sum Assured

In this option, the Sum Assured would increase by 10% of Basic Sum Assured every year which increased for first five years. Either five years starting from the first anniversary or until the diagnosis of the first stage of Cancer (whichever is earlier). All the claims payable shall be based on the Increased Sum Insured in the case of any type of cancer diagnosis. Hence, if any policyholder chooses the second option, then the Cancer care premium will not remain same throughout the policy period.

Eligibility for Cancer Care Plan:

Min Entry Age: 20 Years
Max Entry Age: 65 Years
It means that your age is 65 years then you can take policy for 10 years.
Min Policy Term: 10 Years
Max Policy Term: 30 Years
Minimum Sum Assured: 10 Lakh
Max Sum Assured: 50 Lakh

Benefits Available in LIC Cancer Care Insurance:

LIC Cancer Cover’s benefits (Plan 905) divided into two stages. Keep in mind that this plan is disease specific. Hence, if you suffer CANCER disease during the policy period, then only you will get the benefits.

There is No Maturity Benefit, No Surrender Value, and No Loan Facility.

1. Early Stage Cancer:

If Life Assured is diagnosed on the first stage during the policy period, LIC payable the benefits to cover the Early Stage Cancers are as below.

(a) Lump Sum Benefit– LIC will be payable 25% of Sum Assured shall be payable.

(b) Premium Waiver Benefit– Premiums shall be waived from the policy anniversary for next three policy years or balance policy term whichever is less.

After 3 years premium waiver, Policyholder will be liable to pay the premium regularly up to the policy period.

Life Assured shall not be entitled to make another claim for the Early Stage Cancer of same or any other cancer. However, the coverage for the Major Stage Cancer under the policy shall continue until the policy terminates.

2. Major Stage Cancer

Here, LIC payable benefits on the first diagnosis of Major Stage Cancer which are below.

(a) Lump Sum– Life Assured would be right to get 100% of Applicable Sum Insured less any previously paid claims in respect of Early Stage Cancer.

(b) Income Benefit– Income Benefit means that LIC shall be payable 1% of Applicable Sum Insured on each policy for a fixed period of next ten years irrespective of the survival of the Life Insured. In case of death of the Life Assured, If income benefit period of 10 years goes beyond the policy term. The remaining payouts, if any, will be paid to his/her nominee.

(c) Premium Waiver Benefit– Your all future premiums shall be waived off from the next policy anniversary except to the extent of Income Benefit as specified above.

Once a Major Stage Cancer Benefit is paid no payment for any future claims under Early Stage Cancer or Major Stage Cancer would be admissible.

Waiting Period in LIC Cancer Cover Plan

A waiting period would be 180 days or 6 months from the date of issuance of the policy to the first stage of cancer diagnosis. This would mean that LIC shall not pay anything under this policy if any stage of cancer occurs in this period.

Survival Period in LIC Cancer Cover Plan

If Life Assured dies within a period of 7 days from any stage of cancer, No benefits shall be payable. The 7 days survival period includes the date of diagnosis. Under this plan, the benefit shall be payable subject to fulfilling when all investigations to confirm the diagnosis of cancer should have been done before the death of the Life Assured.


LIC Cancer Care Plan has several positive points and negative points. This plan is available online, low premiums, income benefit, and increasing sum assured etc. However, there are Negative points also like 6 months waiting period and individual plan available etc. So, you have to decide that it is beneficial to you or not.

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