LIC Cancer Cover

In the last few years, cancer cases have gone up in India at an alarming rate. In many health insurance policies, cancer or critical illnesses are not covered specifically in the plan. Treatment of cancer may require many months of hospitalisation and a normal health insurance plan is not adequate to cover the expenses. Moreover, the treatment of cancer is expensive and it solely depends on the different stages of cancer. To fill this gap, Life Insurance Corporation of India has come up with a cancer-specific health plan which is known as LIC Cancer Cover.

Life Insurance Corporation (LIC)

The Life Insurance Corporation of India (in short LIC) is the largest Indian insurance company. LIC offers numerous insurance products to policyholders, such as pension plans, insurance plans, special plans, Unit Linked plans, and an array of group schemes and online child insurance plans. Currently, Life Insurance Corporation of India holds a system of nearly 2,048 branches as well as a large number of agents, who are operating in several cities and towns throughout the nation. In India, Life Insurance Corporation of India is one of the most reliable, reputed and trusted brands that offers affordable premiums with great coverage options. Life Insurance Corporation is the leader in insurance industry only because of its huge network of hospitals and efficient and advanced services.

What is LIC Cancer Cover?

Life Insurance Corporation of India has launched a LIC Cancer Cover which specifically insures a person against life threating cancer disease. The LIC Cancer Cover policy is designed to ensure if the insured is detected with cancer, the person gets required funds that will get him access to the best of health care which is necessary to fight the life threating disease.

What is LIC Cancer Cover Plan 905?

LIC Cancer Cover Plan is a non-linked, non-participating health insurance plan. The LIC Cancer cover is a regular premium payment plan which provides financial coverage in case the policyholder is detected with early or major stage of cancer any time during the tenure of the plan. The policy is available for purchase on the official website of LIC or through offline channels as well. The plan has two benefit options which the policyholder can choose at the time of purchasing the cancer cover plan. The rate of premium will vary as per the plan selected by the applicant.

Option A – Level Sum Insured

In this option, the sum insured of the plan will be fixed for the entire tenure of the plan.

Option B – Increasing Sum Insured

In this option, the sum insured in the plan increases by 10% after the first policy anniversary for the next 5 years or until the time the insured is detected with cancer, whichever is earlier. For example, if the cancer insured cover is taken for INR 10 lakhs, then every year for the next following years, it will increase by INR 1 lakh each and reach a total of INR 15 lakhs. This is subject to the insured not being detected with cancer in between these years. If the insured is detected with cancer after 2 years of taking the policy in increasing sum insured plan, then the sum insured will not increase from more than INR 12 lakhs.

Features and Benefits of LIC Cancer Cover Policy

The benefits and features of LIC Cancer Cover are divided into two stages. It is to be noted that the plan is disease specific. Hence, if you are diagnosed with cancer during the term of the policy, then only you will be able to claim for the benefits.

Early Stage Cancer

The following are the benefits that are offered in the plan if the policyholder gets first diagnosed with cancer of specified early stage.

  • Lump sum benefit: The policyholder will get 25% of the Sum Insured as applicable in the plan.
  • Premium Waiver Benefit: The premiums due for the following three policy years or rest of the policy term whichever is lower, will be waived off by LIC from the policy anniversary date or following the date of diagnosis.
  • After the period of 3 years premium waiver, if the policy term is not finished, then the policyholder has to pay the premium for the remaining policy term.

The early stage cancer benefit is only payable once during the whole policy term. The policyholder cannot make another claim for early stage cancer benefit. However, the major stage cancer benefit will continue to remain active until the remaining period of the policy.

Major Stage Cancer

The following are the benefits that are offered in the plan if the policyholder gets first diagnosed with cancer of specified major stage.

  • Lump Sum: The policyholder will get 100% of the Sum Insured as applicable in the plan minus any claims made for the early stage cancer.
  • Income Benefit: The plan also has a provision for income benefit to the policyholder which is calculated at 1% of the applicable sum insured. The income benefit will be payable to the policyholder every month, following the lump sum payment for a period of 10 years, irrespective of the period that goes beyond the policy term. If the policyholder dies in between the period of 10 years, the remaining pay-outs will be made to the nominee mentioned in the policy.

  • Premium Waiver Benefit: All the premiums due in the future of the policy will be waived off from the next policy anniversary. Once the policy has paid the benefit under the major cancer stage, no other future claims of early stage or major stage will be allowed.

If the policyholder claims for different stages of the same cancer simultaneously, then the benefit will be paid out for the higher claim accepted under the policy.

If the policyholder is diagnosed with more than one cancer, then the corporation will pay-out the benefit that relates to one cancer only and for the highest amount applicable.

It is to be noted there are no surrender value, loan facility or maturity benefit available in the policy. This policy is purely a protection policy specific to cancer related illnesses.

Tax Benefit

The premiums paid for LIC Cancer Cover are eligible fortax deductions under Section 80Dof the Income Tax Act for up to the limit of INR 50,000.

Importance of LIC Cancer Cover

The medical inflation has been in double digits for many years now. Due to advance diagnosis and treatments, the cost of medical treatment has also increased. A person who is diagnosed with cancer will need months of treatment and thus, the financial expenses will also be huge. It is estimated that for cancer care including diagnosis, radiation, chemotherapy, hospitalisation, etc. the cost can be anywhere from Rs. 5 lakhs to Rs. 25 lakhs for just a period of 6 months. For most people, the treatment can be out of reach or it may eat up all their savings. In such times, where there is so much of a physical challenge due to life threating disease, having a LIC cancer cover will definitely help you and your family deal with a crises such as this.

Eligibility Conditions of LIC Cancer Cover Plan 905

Age of EntryMinimum20 years (completed)
Maximum65 years (last birthday)
Age at MaturityMinimum50 years
Maximum75 years
Policy TermMinimum10 years
Maximum30 years
Basic Sum Assured*MinimumINR 10 lakhs
MaximumINR 50 lakhs

Minimum Premium - INR 2400 for all modes

Basic Sum Assured Should Be In The Multiples of INR 1 lakh

What is Covered in LIC Cancer Cover?

The following are the conditions which are covered under LIC Cancer Care. The diagnosis of the listed below conditions must be verified through a histological evidence and be confirmed by a specialist Cancer Doctor.


Carcinoma-in-situ means the existence of malignant cancer cells that remain within the cell group from which they ascended. It must consist of full thickness of the epithelium, but not cross basement membranes and invade the surrounding tissue or organ. The diagnosis of the same must be positively recognized by microscopic examination of fixed tissues.

Prostate Cancer–Early Stage

Early Prostate Cancer that is histologically described using the TNM classification as T1N0M0 with a Gleason Score two to six is acceptable.

Thyroid Cancer – Early Stage

All thyroid cancers which are less than 2.0 cm and histologically classified as T1N0M0 as per the TNM classification.

Bladder Cancer – Early Stage

All tumors of the urinary bladder histologically categorized as TaN0M0 as per the TNM classification.

Chronic lymphocytic Leukaemia –Early Stage

Chronic Lymphocytic Leukaemia classified as stage zero to two as per the Rai staging is acceptable.

Cervical Intraepithelial Neoplasia

Severe Cervical Dysplasia described as Cervical Intraepithelial Neoplasia 3 (CIN3) on cone biopsy.

Major Stage Cancer

A malignant tumor characterized by the unrestrained growth and spread of malignant cells with the purpose of invasion and destruction of normal tissues. This diagnosis must be backed by histological evidence of malignancy. The term cancer includes leukaemia, lymphoma, and sarcoma.

What is Not Covered in LIC Cancer Cover?

The following are specifically not covered from all early stage cancer benefits:

  • All tumors that are histologically described as, borderline malignant, benign or low malignant potential
  • Dysplasia, squamous intra-epithelial lesions or intra-epithelial neoplasia
  • Carcinoma in-situ of skin and Melanoma in-situ
  • All tumors in the existence of HIV infection are not covered

The following are not covered from major stage cancer benefits:

  • All tumors that are histologically defined as carcinoma in situ, benign, premalignant, borderline malignant, low malignant potential, neoplasm of unknown behavior, or non-invasive, including but not restricted to: Carcinoma in situ of breasts, Cervical dysplasia CIN-1, CIN -2 and CIN-3.
  • Any non-melanoma skin carcinoma, unless there is enough evidence of metastases to lymphnodes or beyond;
  • Malignant melanoma which has not caused invasion beyond the epidermis;
  • All tumors of the prostate, except histologically classified as having a Gleason score greater than size or having developed to at least clinical TNM classification T2N0M0
  • All Thyroid cancers histologically categorised as T1N0M0 (TNM Classification) or below;
  • Chronic lymphocytic leukaemia that is less than stage 3 of RAI
  • Non-invasive papillary cancer of the bladder histologically described as TaN0M0 or of a lesser classification,
  • All Gastro-Intestinal Stromal Tumors histologically categorised as T1N0M0 (TNM Classification) or below and with mitotic count of less than or equal to 5/50 HPFs;
  • All tumors in the existence of a HIV infection.

Define Early Stage vs Major Stage Cancer

Early Stage of Cancer

The early stage of cancer is defined as the presence of cancer cells which remain in the cell group from which they arise. The same needs to be confirmed through a histological verification and need to be verified by a cancer specialist of the desired type and group.

Major stage of Cancer

Major or Advanced cancer stage can be defined as an uncontrollable increase of malignant tumors and damage to the normal tissues by the growing cancer cells. The confirmation of the malignancy of the cancer cells needs to be done by histological classification. The term cancer relates to leukemia, lymphoma, and sarcoma.

Waiting Time for LIC Cancer Cover Policy

The waiting time for LIC Cancer Cover policy is 180 days from the date of issuance of the policy or the date of revival of risk cover, whichever is later. No benefit shall be payable if the claim is raised during the waiting period.

LIC Cancer Cover Policy Renewal Process

The LIC Cancer Care policy can be renewed by paying the due renewal premiums online by going to the official website of the Life Insurance Corporation of India. The policy can also be renewed through offline channels like visiting the local LIC branch or through authorised agent.

Documents Required for Purchase LIC Cancer Cover Plan

The following documents are required for purchase of LIC Cancer Cover Plan

  • Identity Proof– Any government ID like Aadhaar card, Pan card, Voter card, driving license etc.
  • Bank Details– Cancelled cheque
  • Income Proof– Salary slip of last 3 months or CA certified balance sheet
  • Age Proof– School leaving certificate, birth certificate
  • Residential Proof– Electricity, phone bill
  • Nominee Details– ID card and residential proof If asked

How to Claim under a LIC Cancer Cover

The following is the claim process of LIC Cancer Cover.

Claim Intimation:

You will need to first intimate LIC about the claim. This can be done by filing a claim form which is available on the official website of the Life Insurance Corporation. You can also visit the nearest LIC branch and fill the claim intimation form. You will also be required to submit supporting documents like diagnosis report and other medical documents to support your claim.

Claim Processing:

After receiving your claim form and supporting documents, the assessor will verify the same and evaluate if the claim falls in the scope of the policy. If any more documents are required, the policyholder will be asked to submit the same. The requirement of documents may differ case to case wise.

Claim Settlement:

Once the evaluation process of the documents submitted is done by LIC, it decision will be communicated to the policyholder. The claim can be either get approved or rejected. In some cases, the insurance company may ask for more documents before approving. LIC has an excellent claim settlement ratio and all the claims are settled in a timely manner. The claim amount will be sent through ECS or NEFT to the policyholder.

Documents Required for Claiming under LIC Cancer Cover Plan

The document may differ from case to case but the basic documents required are mentioned below.

  • Claim form duly signed with original policy document
  • Hospital Treatment certificate/discharge summary
  • Confirmatory investigation reports like radiology, histology and laboratory evidence

Reviews of LIC Cancer Cover

Life Insurance Corporation is the most trusted Life Insurance Company in India. The LIC Cancer Cover plan is a valuable addition to its portfolio. The Cancer Plan offers comprehensive cancer coverage of up to INR 50 lakhs. The amount paid helps get access to some of the best medical facilities in India. The Premium waiver and income benefit feature help the policyholder and his/her family to get relief from the financial strain of expenses apart from cancer care.

The plan can be purchased easily from the official website of LIC or through offline channels. The claim settlement process in the plan is easy and claim settlement ratio of LIC is one of the best in the insurance industry. LIC cancer is a must buy for everyone, especially for those who have a history of cancer-related illnesses in the family.


LIC Cancer Cover is a specific disease explicit health insurance plan. Anyone from the age of 20 to 65 years can get enrolled in the plan. The cost of the plan works out cheaper i.e. up to 7%, if it is purchased through an online platform. The basic sum assured of the plan is between INR 10 lakhs to INR 50 lakhs. Apart from the cancer protection, it offers the premium waiver benefit under the plan and also offer a valuable tax benefit to the insured.

FAQ on LIC Cancer Cover Plan

Is it difficult to get cancer insurance in case my family has a history of cancer?

No, LIC accepts all applicants from the customer, even if they have a family history of cancer. However, such customers may be asked to submit a detailed description of their cancer history.

Where can I get the medical test done for availing a cancer insurance plan?

Normally the customer service representative of the insurance company will contact and fix an appointment with their approved medical examiner partner.

Are there tax benefits offered for premium payment in a cancer insurance plan?

Yes, all premiums paid towards a cancer insurance policy are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. However, tax rules and regulations are subject to change from time to time. Hence, it is advised to check the most updated tax provisions of the current financial year.

What happens if I discontinue paying a premium towards my cancer insurance policy?

If you stop the premium payment towards your cancer insurance policy, you will get 30 days of grace period from the date your premium was due. All the benefits are active during the grace period. Once the grace period is over and the premium is still not paid, the policy will lapse. You can reinstate the lapsed policy by following the procedure as stated by the insurer. It is to be noted that the waiting period of 180 days will be enforced here for a lapsed policy, after it is reinstated and no claims will be entertained during the waiting period.

What if I am not happy with the LIC Cancer Cover policy after purchasing it?

LIC offers a free look period of 15 days and 30 days if purchased online. If the policyholder is not happy, then he/she may cancel the policy during this period and the appropriate refund will be paid back by the LIC. The policy and its benefits will cease once it has been returned.

How many times can I claim for early-stage cancer in the LIC Cancer Care policy?

You can claim only once for early-stage cancer. Once the policy has paid out for early-stage cancer, it cannot be claimed again. However, the policy will continue to cover the policyholder for major stage cancer during the remaining policy term.

Are pre-existing diseases covered in LIC cancer cover insurance policy?

No, pre-existing diseases are not covered in the LIC Cancer Cover insurance policy. For the list of exclusions, please go through the policy document carefully or ask the customer service representative.

What is meant by ‘Survival Period’ in the LIC Cancer Cover plan?

In order to be eligible for the pay out offered in the plan, the policyholder needs to survive for at least a period of 7 days post diagnosis of cancer. This 7 days period is defined as the survival period in the LIC Cancer Insurance Plan.

If I smoke cigarette smokers will I be eligible for cancer insurance plans?

Yes, you can still apply for a cancer insurance plan and your application may be accepted depending upon the underwriting guidelines of the insurer.