LIC Cancer Cover Plan 905 (Table No. 905) is a health insurance plan specifically designed to provide financial protection against the high costs of cancer treatment. Launched on 14th November 2017, this plan offers fixed benefits on the diagnosis of early and major stages of cancer. It’s a non-linked, regular premium health insurance policy, meaning it does not invest in the share market and remains unaffected by market fluctuations.
Let’s explore this plan in detail:
🔑 Key Highlights of LIC Cancer Cover Plan 905
- Non-linked, Regular Premium, Health Insurance Plan
- Designed exclusively to cover various stages of cancer
- Offers lump-sum benefits, income benefits, and premium waivers
- Two Sum Assured options: Level Sum Assured & Increasing Sum Assured
- Available for online and offline purchase
- Tax benefits under Section 80D
✅ Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Age at Entry | 20 years (Completed) | 65 years (Last Birthday) |
| Policy Term | 10 years | 30 years |
| Cover Ceasing Age | – | 75 years |
| Basic Sum Insured | ₹10,00,000 | ₹50,00,000 |
🛡️ Two Sum Assured Options
| Option | Description |
|---|---|
| Option 1 – Level SA | Basic Sum Assured remains constant throughout the term |
| Option 2 – Increasing SA | Increases by 10% every year for first 5 years or till cancer is diagnosed |
Note: After diagnosis of cancer, further increases in SA under Option 2 stop.
🎁 Benefits of LIC Cancer Cover Plan
LIC Cancer Cover offers two types of benefit payouts based on the cancer stage diagnosed:
1. Early Stage Cancer Benefits
- ✅ Lump Sum: 25% of Applicable Sum Insured
- ✅ Premium Waiver: Future premiums waived for next 3 policy years or balance term (whichever is lower)
- ❌ No second claim under Early Stage Cancer allowed
Coverage continues for Major Stage Cancer even after Early Stage claim.
2. Major Stage Cancer Benefits
- ✅ Lump Sum: 100% of Applicable Sum Insured (less any Early Stage claim)
- ✅ Income Benefit: 1% of Sum Assured monthly for next 10 years, even if the policyholder dies during this period (nominee continues to receive income)
- ✅ Premium Waiver: All future premiums waived after claim approval
No further benefits are paid after a claim under Major Stage Cancer.
🚫 Exclusions
Early Stage Cancer Exclusions:
- All benign tumors
- Tumors with borderline malignancy
- Carcinoma in-situ of skin
- Tumors present with HIV infection
Major Stage Cancer Exclusions:
- CIN1, CIN2, and CIN3 of the cervix
- Skin cancer without metastasis
- All prostate cancers with Gleason ≤ 6 or T1N0M0
- All thyroid cancers < 2 cm (T1N0M0)
- Chronic lymphocytic leukemia (Rai stage < 3)
- Gastrointestinal stromal tumors (T1N0M0)
⏳ Waiting Period
- 180 days from policy start or risk commencement date, whichever is later.
- No benefits payable if cancer is diagnosed within this waiting period.
🧾 Premium and Tax Benefits
- Premiums eligible for tax deductions under Section 80D
- Premiums are guaranteed for the first 5 years and may be revised based on LIC’s claim experience thereafter.
📊 LIC Cancer Cover – Plan Illustration Example
Let’s understand the plan better with an example.
Policyholder: Mr. Rajesh
Age: 35 years
Sum Assured: ₹20,00,000
Policy Term: 20 years
Plan Option: Increasing Sum Assured
Annual Premium: ₹2,200 (approx.)
🔢 Year-wise Example of Increasing Sum Assured (First 5 Years)
| Policy Year | Sum Assured (Applicable) |
|---|---|
| Year 1 | ₹20,00,000 |
| Year 2 | ₹22,00,000 |
| Year 3 | ₹24,00,000 |
| Year 4 | ₹26,00,000 |
| Year 5 | ₹28,00,000 |
If no cancer is diagnosed in first 5 years, the SA becomes ₹30,00,000 and remains fixed afterward.
💰 Benefit Payout Scenarios
🎗️ Early Stage Cancer Diagnosed in Year 4
| Benefit | Amount |
|---|---|
| Applicable SA (Year 4) | ₹26,00,000 |
| Lump Sum (25%) | ₹6,50,000 |
| Premium Waiver | 3 years of premium waived |
| Future Coverage Continues | Yes, for Major Stage Cancer |
🎗️ Major Stage Cancer Diagnosed in Year 10
| Benefit | Amount |
|---|---|
| SA (As per Policy) | ₹30,00,000 (increased & locked) |
| Lump Sum (100%) | ₹30,00,000 |
| Monthly Income (1%) | ₹30,000/month for 10 years = ₹36,00,000 |
| Premium Waiver | All future premiums waived |
| Total Benefit Value | ₹66,00,000 |
If the policyholder dies in Year 12, the nominee still receives monthly income until Year 20.
📑 Cancer Covered under this Plan
✅ Early Stage:
- Carcinoma in-situ (except skin)
- Early prostate cancer (T1N0M0 with Gleason 2–6)
- Early thyroid cancer (<2 cm)
- Cervical Intraepithelial Neoplasia CIN-3
- Early bladder cancer (TaN0M0)
- Chronic lymphocytic leukemia (Rai 0-2)
✅ Major Stage:
- Invasive cancers (lung, colon, breast, etc.)
- Sarcoma, leukemia, lymphoma
- Cancers requiring chemo, radiation, or surgery
📌 Other Plan Features
| Feature | Availability |
|---|---|
| Loan Facility | ❌ Not available |
| Surrender Value | ❌ Not available |
| Maturity Benefit | ❌ None |
| Revival | ✔️ Within 2 years of lapse |
| Nomination/Assignment | ✔️ Allowed |
📜 Summary: Should You Buy LIC Cancer Cover Plan?
LIC Cancer Cover Plan 905 is a suitable plan for those who want specific health insurance against cancer without entering into a complicated hospital reimbursement model. It’s best for:
- Individuals with a family history of cancer
- People seeking fixed, lump sum cancer coverage
- Those who want affordable protection for long durations
✅ At a Glance – Plan Snapshot
| Feature | Description |
|---|---|
| Plan Type | Non-linked, Health Insurance |
| Policy Term | 10 to 30 years |
| Entry Age | 20 to 65 years |
| Sum Assured | ₹10 lakh to ₹50 lakh |
| Premium Frequency | Yearly, Half-yearly, Quarterly |
| Cancer Covered | Early & Major Stage Cancers |
| Tax Benefits | u/s 80D |
| Claim Payment | Lump Sum + Income Benefit (major) |
