LIC Plan: Upon diagnosis of cancer, a lump sum will be credited to your account, and all future premium installments will be waived..
LIC New Cancer Cover: When faced with a serious illness, the primary concern for an average person is often the burden of exorbitant hospital expenses. To help alleviate this challenge, the Life Insurance Corporation of India (LIC) has introduced the ‘LIC New Cancer Cover’ plan. This is a non-linked plan, structured entirely as a pure-risk health insurance policy. A key feature of this plan is that the premium remains fixed throughout the policy term—meaning your installment amount will not increase for the duration of the policy.
Fixed Payouts Instead of Reimbursement for Medical Bills
Developed in response to the rising incidence of cancer, this plan provides financial protection across all stages of the disease, from early to advanced. Rather than reimbursing the actual medical costs incurred, the plan offers fixed financial benefits. If a policyholder is diagnosed with early-stage cancer, they receive an immediate payout equal to 25% of the sum assured. In the case of a diagnosis of major-stage (advanced) cancer, the policyholder receives 100% of the applicable sum assured. According to the policy terms, once a cancer diagnosis is confirmed, all future premium payments are waived. The plan offers a choice between a ‘level sum assured’ and an ‘increasing sum assured,’ allowing individuals to select the option that best suits their needs.
Minimum Sum Assured Based on Age
The plan is available to individuals between the ages of 18 and 65, with age calculated based on the individual’s last birthday. The policy can be purchased for a term ranging from a minimum of 10 years to a maximum of 15 years. This means that if an 18-year-old purchases this policy for a 10-year term, it will mature when they reach the age of 28. The company has established four slabs for the minimum basic sum assured, based on age ranges. For policyholders aged 18 to 34, the minimum basic sum assured is ₹35,00,000. For those aged 35 to 40, it is ₹30,00,000; for those aged 41 to 50, it is ₹20,00,000; and for individuals aged 51 to 65, the amount is set at ₹15,00,000.
Rules regarding maturity or death benefits
It is essential to understand the terms and conditions before purchasing the policy. This policy does not include any death benefit, as it is not a term life insurance plan; rather, it is a pure-risk health insurance plan. If the policyholder is not diagnosed with cancer during the policy term—meaning they do not require treatment—they will not receive any benefits upon maturity. Furthermore, this plan does not offer a loan facility, nor does it have any surrender value.
Discount available when purchasing directly from the company
Premiums for this policy can be paid on an annual or semi-annual basis. Customers who purchase the policy directly from LIC are eligible for a rebate (discount) on the premium. However, this rebate is not applicable if the policy is purchased through an agent, corporate agent, or insurance marketing firm.
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