Life Insurance Corporation (LIC) has sold 88,750 policies of their cancer plan across the country. LIC's flagship programme was launched just six months back and seems to have received a favourable response from the masses.
On November 14, 2017, Life Insurance Corporation of India (LIC) launched its Cancer Cover Plan. And just within five months from its launch LIC has sold 88,750 policies across India. The sales data analysis shows that states of Maharashtra, Gujarat, Tamil Nadu and Kerala have contributed to 58.5 %in the sale of LIC’s Cancer Cover Plan. The people from the states of the west zone i.e. Maharashtra and Gujarat have bought 26,280 policies, whereas from the South zone i.e. Tamil Nadu and Kerala, have seen a sale of 25,670 policies which put together becomes the maximum number of cancer cover policies sold so far.
Reportedly, LIC said in a statement, “As on date we have sold 88,750 policies with a first premium income of Rs. 42.68 crore.” At the same time, the first ever state-level disease burden study released last November showed the states of Maharashtra, Gujarat, Tamil Nadu and Kerala which ranked higher on the development ladder, are also becoming hubs of many non-communicable diseases, including cancer. As per the paper published last month in the medical journal Lancet Oncology, India is burdened with over 1.5 million new cases of cancer and is projected to have nearly doubled in the next 20 years with age-adjusted mortality rates of 64.5 per 1,00,000 people. It also further says that the survival rate among people diagnosed with this dreaded disease is less than 30 percent for a period of five years or more after diagnosis.
Talking about the LIC’s Cancer Cover Plan, people within the age group of 20 to 65 years can apply for this plan. The cover offered under this plan ranges from Rs. 10 lakhs to Rs. 50 Lakhs and the minimum premium under this plan is Rs. 2,400/- per annum for all modes. One can buy without undergoing any medical examination but it has a mandatory waiting period of 180 days from the date of issuance of the policy before a claim can be made. The minimum cover ceasing age is 50 years and the maximum cover ceasing age is 75 years.
This plan comes with two options i.e. Option-1: Level Sum Insured, here the basic sum insured will remain constant throughout the policy term and Option-2: Increasing Sum Insured, here the basic sum insured will increase by 10 percent every year for first five years only or diagnosis of the first event of cancer, whichever is earlier. LIC’s Cancer Cover plan takes care of specified early-stage cancers as defined, under which a lump sum benefit of 25 percent of the chosen sum insured is paid. In addition to the same, premiums are waived off for the next three policy years. If the insured is diagnosed with any specified major stage cancer, a lump sum benefit of 100 percent of chosen sum insured less any previously paid claims related to early-stage cancer is paid. The premiums are also waived off for the remaining term of the policy.
In addition, the life insured also receives 1 percent of his chosen sum insured on a monthly basis as income benefit for a period of next 10 years. In case of death of the life insured, the income benefit continues to be paid to the nominee. However, there is no maturity benefit, death benefit or loan facility available under this plan. The insurer also said, “As the period is less than 180 days since the introduction of this plan, no claims were received/registered and paid so far.”
Many private sector players also have cancer insurance products in their portfolio of offerings like ICICI Pru Heart & Cancer Cover plan, HDFC Life Cancer Care Insurance, Aegon Life iCancer Insurance Plan, Bharti AXA Cancer Insurance Plan, Future Generali Cancer Plan, Max Life Bupa Critical Illness Plan are some of the schemes currently in the market offered by the private players.