Cancer Cover Plan 905
Cancer Cover Plan 905: Cancer has become one of the biggest health concerns in India. According to the Indian Council of Medical Research (ICMR), nearly 1.5 million new cancer cases are reported every year, and the number is rising.
Introduction – Why Cancer Insurance is Crucial in India
Cancer has become one of the biggest health concerns in India. According to the Indian Council of Medical Research (ICMR), nearly 1.5 million new cancer cases are reported every year, and the number is rising. What’s more worrying is the high cost of treatment, which can range between ₹5–20 lakhs depending on the stage and type of cancer.
For a middle-class family, such an expense can completely drain savings and create financial distress. Recognizing this gap, the Life Insurance Corporation of India (LIC) launched a specialized health insurance product – LIC Cancer Cover Plan 905.
This plan is a fixed benefit health insurance plan that helps policyholders financially during different stages of cancer treatment. It provides lump sum payouts, premium waivers, and income benefits so families can focus on recovery rather than money worries.
What is LIC Cancer Cover Plan 905?
LIC Cancer Cover (Plan 905) is a non-linked, non-participating, regular premium health insurance plan.
- It is not linked to the stock market.
- It does not provide bonuses (since it’s health-focused, not savings-focused).
- It covers both early-stage cancer and major-stage cancer.
In short, this plan is a pure risk protection plan designed specifically to cover cancer-related expenses.
Key Features of LIC Cancer Cover Plan 905
- Plan Type: Health insurance plan (not a savings plan).
- Coverage: Early-stage & major-stage cancer.
- Entry Age: 20 – 65 years.
- Maximum Coverage Age: 75 years.
- Policy Term: 10 – 30 years.
- Minimum Sum Insured: ₹10,00,000.
- Maximum Sum Insured: ₹50,00,000.
- Premium Payment Mode: Yearly, half-yearly.
- Premium Waiver: Future premiums waived after major cancer diagnosis.
- Income Benefit: Monthly payouts on major stage cancer.
- Tax Benefits: Premium eligible under Section 80D of Income Tax Act.
Benefits of LIC Cancer Cover Plan 905
1. Early-Stage Cancer Benefit
If diagnosed with early-stage cancer:
- 25% of Sum Insured is paid.
- Premium for next 3 years waived.
2. Major-Stage Cancer Benefit
If diagnosed with major cancer:
- 100% of Sum Insured paid (minus any early-stage payouts already made).
- All future premiums waived.
- Monthly Income Benefit: 1% of Sum Insured for 10 years.
3. Death Benefit
No death benefit is payable. This is a health-specific plan.
4. Surrender & Loan
- No surrender value.
- No loan facility.
5. Tax Benefit
Premium paid eligible for deduction under Section 80D.
LIC Cancer Cover Plan 905 – Eligibility Chart
| Particulars | Details |
|---|---|
| Plan Name | LIC Cancer Cover 905 |
| Entry Age | 20 – 65 years |
| Maximum Maturity Age | 75 years |
| Policy Term | 10 – 30 years |
| Minimum Sum Insured | ₹10,00,000 |
| Maximum Sum Insured | ₹50,00,000 |
| Premium Payment Modes | Yearly / Half-yearly |
| Waiting Period | 180 days |
| Survival Period | 7 days (from diagnosis) |
Premium Illustration (Sample)
Let’s take an example:
Case 1: Mr. Ramesh (Age 35, Policy Term 20 years, Sum Insured ₹20 lakh)
| Age | Policy Term | Sum Insured | Annual Premium (Approx.) |
|---|---|---|---|
| 35 | 20 years | ₹20,00,000 | ₹5,500 – ₹6,000 |
👉 For just about ₹500 per month, Mr. Ramesh secures ₹20 lakh cancer coverage.
Investor Scenarios
Scenario 1: IT Professional (Age 30)
- Opts for ₹30 lakh cover.
- Pays ₹8,000 annually.
- At age 45, diagnosed with early-stage cancer. Receives ₹7.5 lakh payout + premium waiver.
Scenario 2: Homemaker (Age 40)
- Takes ₹15 lakh cover.
- Premium approx. ₹4,000 annually.
- At age 50, diagnosed with major-stage cancer. Receives ₹15 lakh + 1% monthly income benefit (₹15,000 per month for 10 years).
Scenario 3: Small Business Owner (Age 50)
- Buys ₹25 lakh cover.
- Premium around ₹10,000 annually.
- Provides financial support in case of major-stage cancer without disrupting family business capital.
Why LIC Cancer Cover Plan 905 is Important
- Affordable premiums compared to treatment costs.
- Comprehensive coverage for both early & major cancer.
- Premium waiver ensures no financial burden post-diagnosis.
- Monthly income benefit helps in ongoing household expenses.
- Tax benefits under Section 80D.
Analyst Insights
- Insurance Analysts: “Cancer cases are increasing in India at an alarming rate. A dedicated cancer policy like LIC Cancer Cover is essential for financial security.”
- Health Experts: “This plan ensures treatment continues without interruption due to financial stress.”
- Financial Planners: “Instead of using savings or loans, a cancer-specific plan ensures dedicated funds for treatment.”
Real-Life Investor Examples
- Mr. Suresh, 42 years old: Took ₹20 lakh cover. Diagnosed with early-stage cancer after 5 years. Got ₹5 lakh payout and premium waived for 3 years.
- Mrs. Anita, 50 years old: Opted for ₹15 lakh cover. Diagnosed with major cancer at 55. Received ₹15 lakh lump sum + ₹15,000 per month for 10 years.
- Mr. Rajesh, 60 years old: Bought ₹10 lakh cover. At age 65, diagnosed with early-stage cancer. Got ₹2.5 lakh + premium waiver.
Advantages & Limitations
Advantages
✅ Affordable premiums.
✅ Coverage for both early & major stages.
✅ Monthly income benefit after major cancer.
✅ Premium waiver.
✅ Tax benefits under Section 80D.
Limitations
❌ No death benefit.
❌ No maturity/surrender value.
❌ Waiting period of 180 days.
❌ Not a savings plan.
LIC Cancer Cover Plan 905 vs Other Health Plans
| Feature/Plan | LIC Cancer Cover 905 | LIC Jeevan Arogya | Generic Health Insurance |
|---|---|---|---|
| Coverage Type | Cancer-specific | General health | General health |
| Sum Insured | ₹10 – 50 lakh | ₹1 – 4 lakh | ₹5 – 50 lakh |
| Premium | Low | Moderate | Varies |
| Benefits | Lump sum + income benefit | Hospitalization | Hospitalization |
| Tax Benefit | 80D | 80D | 80D |
FAQs (Google-Friendly)
Q1. What is LIC Cancer Cover Plan 905?
It’s a health insurance plan providing financial support for early & major stage cancer.
Q2. Who can buy this plan?
Anyone aged 20–65 years.
Q3. What is the minimum and maximum sum insured?
Minimum ₹10 lakh, maximum ₹50 lakh.
Q4. Is there a waiting period?
Yes, 180 days from policy start.
Q5. Are premiums tax deductible?
Yes, under Section 80D.
Q6. Does this plan have maturity value?
No, it’s a pure protection plan.
Q7. Is death benefit included?
No, it only covers cancer.
Q8. Can I take loan against this policy?
No, loan facility not available.
Final Thoughts – Should You Invest in LIC Cancer Cover Plan 905?
Healthcare inflation in India is rising, and cancer treatment costs can cripple any family financially. The LIC Cancer Cover Plan 905 offers an affordable way to prepare for such risks.
It is not a savings plan, but if your goal is pure protection against cancer-related expenses, then this plan is one of the best dedicated cancer insurance policies in India.
👉 For families in India looking for affordable, comprehensive, and reliable cancer insurance, LIC Cancer Cover Plan 905 is a must-have addition to financial planning.
