Life Insurance Corporation of India’s fixed-benefit cancer plan pays 25% for early-stage diagnosis and the full sum assured for major-stage cancer, but offers no maturity or death benefit.
Life insurance Corporation of India has introduced a new cancer-focused cover aimed at easing the financial strain of treatment, particularly at a time when families often face sharp out-of-pocket hospital bills, according to TV9 Hindi. The insurer has positioned the product as a non-linked health plan built around fixed payouts rather than reimbursement of actual medical expenses, with premium rates that remain unchanged for the full term, according to LIC-related product information and plan summaries.
The cover pays a preset amount once a specified cancer diagnosis is confirmed. Under the plan details published by LIC-linked sources, an early-stage diagnosis triggers payment of 25% of the applicable sum assured, while major-stage cancer leads to a full payout of 100% of the applicable sum assured. After an early-stage claim, future premiums are waived for the next three policy years, and major-stage claims also bring a monthly income benefit equal to 1% of the sum assured for 120 months.
The plan also gives buyers two structure options: a level sum assured, which stays unchanged through the policy term, and an increasing sum assured, which rises by 10% a year for the first five policy anniversaries or until a covered cancer diagnosis. Published plan details say the policy is open to adults aged 18 to 65, with the minimum basic sum assured set according to age bands and the maximum capped at ₹50,00,000. The term runs from 10 to 15 years, and premiums may be paid annually or half-yearly.
There are also important limits. The product is not a term life policy, so it does not pay a death benefit, and it does not offer a maturity benefit if no claim is made during the policy term. The plan also carries no loan facility and no surrender value, according to the product information available online. TV9 Hindi reported that customers buying directly from LIC can receive a premium rebate, while that concession is not available if the policy is bought through an agent, corporate agent or insurance marketing firm.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
