Plan Number: 905
UIN: 512N314V03
Launch Date: 26 April 2023
Withdrawal Date: 01 January 2025
Entry Age: 20 to 65 Years
Policy Term: 10 to 30 Years
What is LIC Cancer Cover Plan 905?
LIC Cancer Cover Plan 905 is a non-linked, non-participating health insurance policy offered by the Life Insurance Corporation of India (LIC). The plan is specially designed to provide financial protection if the insured person is diagnosed with specified early-stage or major-stage cancer during the policy term.
The policy offers a combination of lump-sum payouts and regular income benefits to help manage treatment expenses, recovery costs, and loss of income during difficult times.
LIC Cancer Cover Plan 905
Cancer treatment can become financially challenging due to rising medical costs, long-term care, and income disruption. LIC Cancer Cover Plan 905 was introduced to provide dedicated cancer protection and financial security for policyholders and their families.
The plan focuses specifically on cancer-related risks and offers support based on the stage and severity of the illness diagnosed during the policy period.
Launch and Withdrawal Dates
- Launch Date: LIC Cancer Cover Plan 905 was introduced on 26 April 2023.
- Withdrawal Date: The policy was withdrawn during the financial year 2024–25, with the official withdrawal announcement issued around January 2025.
Although new purchases are no longer available, existing policyholders continue to receive benefits according to their policy terms and conditions.
Eligibility Criteria for LIC Cancer Cover Plan 905
Before purchasing LIC Cancer Cover Plan 905, it was important to check the eligibility conditions mentioned below.
| Criteria | Details |
|---|---|
| Entry Age | Minimum 20 years and maximum 65 years |
| Policy Term | Minimum 10 years and maximum 30 years |
| Maturity Age | Minimum 50 years and maximum 75 years |
| Minimum Premium | ₹5,000 per year |
| Sum Insured | ₹15 lakh to ₹50 lakh depending on age |
| Free Look Period | 30 days |
These eligibility conditions made the plan suitable for individuals seeking financial protection against cancer during their working and retirement years.
Key Features of LIC Cancer Cover Plan 905
Two Sum Insured Options
At the time of purchasing the policy, the policyholder could choose between two coverage options based on personal financial needs.
Option 1: Level Sum Insured
Under this option, the chosen sum insured remained fixed throughout the entire policy term without any increase.
Option 2: Increasing Sum Insured
In this option, the Basic Sum Insured increased by 10% every year for the first 5 policy years. The increase started from the first policy anniversary or the date of first cancer diagnosis, whichever occurred earlier.
After cancer diagnosis, the increased sum insured applicable at that time became fixed for the remaining policy term.
Benefits Based on Cancer Stage
LIC Cancer Cover Plan 905 provided different benefits depending on whether the cancer was diagnosed at an early stage or major stage.
Early-Stage Cancer Benefit
If the policyholder was diagnosed with an eligible early-stage cancer for the first time during the policy term:
- 25% of the applicable Sum Insured was paid as a lump-sum benefit.
- Future premiums were waived for the next 3 years or for the remaining policy term, whichever was shorter.
This benefit helped reduce the financial burden during the initial phase of treatment.
Major-Stage Cancer Benefit
If the insured person was diagnosed with a specified major-stage cancer:
- 100% of the applicable Sum Insured was payable after deducting any amount already paid for an earlier early-stage claim.
- An additional monthly income benefit equal to 1% of the Sum Insured was paid for 10 years.
- All future premiums under the policy were waived after diagnosis.
This structure provided both immediate financial assistance and long-term income support during treatment and recovery.
No Maturity or Death Benefit
LIC Cancer Cover Plan 905 was a disease-specific health insurance policy. If the policyholder was not diagnosed with a covered cancer during the policy term, no maturity amount or death benefit was payable.
No Loan or Surrender Facility
This policy did not offer any loan facility or surrender value because it was purely designed for cancer-related financial protection and not as a savings or investment product.
Waiting Period
A waiting period of 180 days applied from the policy commencement date. Any cancer diagnosis during this initial waiting period was not eligible for claim benefits.
Premium Payment Options
Premiums under the plan could be paid regularly in:
- Yearly mode
- Half-yearly mode
The premium had to be paid throughout the selected policy term unless waived due to eligible cancer claims.
Tax Benefits
Premiums paid under LIC Cancer Cover Plan 905 qualified for tax deductions under Section 80D of the Income Tax Act, as per prevailing tax rules.
Benefits Explained in Simple Terms
| Event | Benefit Provided |
|---|---|
| Early-Stage Cancer | 25% lump-sum payout of the Sum Insured along with premium waiver for 3 years |
| Major-Stage Cancer | 100% Sum Insured (after adjusting any earlier claim) + monthly income for 10 years + waiver of future premiums |
The monthly income benefit continued even after the policy term ended. In case of the policyholder’s death, the remaining income benefits were payable to the nominee.
How to Use LIC Cancer Cover Plan 905 Calculator
The LIC Cancer Cover Plan 905 Calculator helped users estimate premium amounts and policy benefits based on factors such as age, policy duration, selected coverage, and benefit option.
Steps to Use the Calculator
- Enter your age between 20 and 65 years.
- Select the policy term from 10 to 30 years.
- Choose the required sum insured between ₹15 lakh and ₹50 lakh.
- Select either:
- Level Sum Insured option, or
- Increasing Sum Insured option.
- Submit the details to view:
- Estimated premium amount
- Cancer benefit payouts
- Monthly income benefit details
The calculator made financial planning easier by giving a clear estimate of premiums and expected claim benefits.
Important Points to Remember
- No maturity value is payable if no cancer claim occurs during the policy term.
- Loan and surrender facilities are not available.
- The insured must survive at least 7 days after cancer diagnosis for the claim to become payable.
- Claims related to excluded conditions such as AIDS, alcohol-related illnesses, or drug abuse are not covered.
- A grace period of 30 days is allowed for premium payments.
- The policy terminates if cancer is diagnosed during the waiting period or after the first major-stage cancer claim is settled.
Why Consider LIC Cancer Cover Plan 905?
- LIC is one of India’s most trusted insurance providers.
- The plan focused specifically on cancer-related financial protection.
- It offered both immediate lump-sum assistance and long-term monthly income support.
- Two sum insured options allowed policyholders to customise coverage as per their needs.
- Premium waiver benefits reduced the financial burden after diagnosis.
- Tax deductions under Section 80D added extra financial advantages.
- Online premium calculators simplified benefit estimation and policy planning.
Although LIC Cancer Cover Plan 905 has been withdrawn for new sales, existing policyholders continue to receive coverage and benefits according to their policy terms.
Alternatives After Plan Withdrawal
Since LIC Cancer Cover Plan 905 was withdrawn during the financial year 2024–25, new customers can consider other health insurance and cancer protection plans available in the market.
Some commonly explored alternatives include:
- LIC Jeevan Arogya for broader medical and hospitalization coverage, including certain cancer-related benefits.
- Dedicated cancer insurance policies offered by private insurers such as Max Bupa and ICICI Lombard.
- Critical illness riders that can be added to term insurance or standard health insurance policies for additional protection.
These alternatives can also be compared through online insurance calculators and premium comparison portals to evaluate coverage, premium costs, waiting periods, and claim benefits.
Frequently Asked Questions
What is LIC Cancer Cover Plan 905?
LIC Cancer Cover Plan 905 was a specialised health insurance policy designed to provide financial support if the insured person was diagnosed with specified cancer during the policy term.
When was LIC Cancer Cover Plan 905 launched?
The plan was launched on 26 April 2023.
Is LIC Cancer Cover Plan 905 still available for new purchase?
No, the plan was withdrawn from sale around January 2025. However, existing policyholders continue to receive coverage according to policy terms.
What is the eligible age range under this plan?
Individuals between 20 years and 65 years of age could apply for the policy.
What benefits were available under the plan?
The policy offered:
- Lump-sum payouts for early-stage and major-stage cancer diagnosis
- Monthly income benefits for major-stage cancer claims
- Waiver of future premiums after eligible diagnosis
Conclusion
LIC Cancer Cover Plan 905 was introduced as a dedicated cancer protection policy that provided financial support through lump-sum payouts, monthly income benefits, and premium waiver features.
Launched on 26 April 2023 and withdrawn during 2024–25, the plan was designed to help policyholders manage the financial impact of cancer treatment and recovery. The LIC Cancer Cover Plan 905 Calculator also made it easier for users to estimate premiums, coverage amounts, and policy benefits before purchasing the plan.
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