L.I.C’s Cancer Care – Financial Fight against cancer!

Cancer burden in India has more than doubled in the last 26 years! The dreadful disease stare at the face of the country with the  Indian Council Medical Research (ICMR) estimating more than 17.3 lakh new cancer cases and more than 8.8 lakh deaths due to the disease by 2020. The disturbing fact is that these numbers may be far lesser than the actual as there is an expected under-reporting of at least 50-100% due to non-availability of formal cancer registries.

Keeping in mind the impact on finances for the family whose member are affected by cancer, L.I.C of INDIA has brought out an exclusive plan – CANCER CARE that provides “financial fight” against cancer.

lic-cancer-cover-plan

The following are the broad features of L.I.C’s Cancer Care Plan:

  1. The plan provides cover for both Early Stage / Major Stage Cancer detection
  2. The plan is available for a maximum of 30 years term (or) 75 years of the insured, which ever is lesser.
  3.  The plan is available in two variants – A Fixed Sum Assured option & An increasing Sum Assured option where the cover gets increased by 10% every year for first 5 years
  4. Any person from 20 years till 65 years can avail the policy
  5. The minimum sum assured is fixed at 10 lakhs & the maximum is at 50 lakhs
  6. Only yearly & half-yearly mode of premium payment is allowed & the premiums are guaranteed for the 1st 5 years of the policy.
  7. Premiums paid are eligible for tax exemption u/s 80D of IT Act
  8. There is no maturity benefit / death benefit in this plan & hence the premiums are very cheap!

Now let us look at the benefits of the plan:

EARLY STAGE CANCER – BENEFITS

  • Lump-Sum Benefit at 25% of the applicable Sum Assured is immediately payable
  • Premium Waiver Benefit: Premiums need not be paid for the next 3 years
  • The policy benefits will continue as such

MAJOR STAGE CANCER – BENEFITS

  • Lump-Sum Benefit at 100% of the applicable Sum Assured is immediately payable (Less any claims previously paid)
  • Premium Waiver Benefit: Premiums need not be paid at all
  • Income Benefit: 1% of applicable sum assured shall be paid every month for next 10 years to the insured or to the nominee

The below are the sample premium rates for a 35-year old Male / Female for various sum assured (Fixed Option) & for a 30 year policy term:

Premium-Rate

Waiting Periods

  • Waiting period of 180 days is applicable from date of issuance of the policy (or) date of revival for any benefits to be payable
  • Survival Period of 7 days including the date of diagnosis is applicable for any benefit to be payable.

For exclusions on Early Stage Cancer & Major Stage Cancer – it is advisable to refer to the policy conditions and/or speak to the financial advisor as the it will be too technical to discuss here.

Over all, L.I.C’s Cancer Care is a wonderful product with low premiums in the financial fight against cancer.

L.I.C’s JEEVAN SHANTI plan

  1. Are you looking for A Safe & 100% Guaranteed Pension through-out life-time along with passing on the guaranteed income to your spouse through-out her life too?
  2. Do you want to FIX your interest rate of your retirement corpus today itself?
  3. Do you want to just pay once for building your retirement corpus?

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Then… you may consider L.I.C’s new guaranteed pension plan (Deferred Option) – JEEVAN SHANTI. As the policy name conveys, the plan provides “Shanti” against worrying on reducing interest rates & guarantees the pension today itself through out your life time. This plan would be an ideal one for those in the age group of 35-50 years to plan their pension by making just a one-time investment today.

You may choose the deferment period from 1-20 years & the guaranteed interest rate varies accordingly. The Interest rate also varies as per the age of the person. What more – Jeevan Shanti also provides for life insurance cover by way of Purchase Price + guaranteed additions during the deferment term (and) minimum 110% of Purchase price during the pension receiving period. You may opt for various modes of receiving pension – Monthly, Quarterly, Half-yearly or yearly.

Let us take a quick example of a 45 year old investing 20 lakhs in L.I.C’s Jeevan Shanti – the guaranteed pension pay-out for different deferment periods will be as below:

GST @ 1.8% is payable on the purchase price in addition.

Interest-Rate-Jeevan-Shanti

Now presuming, I invest this 20 lakhs in any other instrument & decide to take up the pension from Banks, Post Office (or) L.I.C’s Immediate annuity plan at the end of the deferment period of say 10 years – the corpus we can build over this time period and the expected pension is given as below. Here I have assumed the annuity rate to be at 4% (which itself in my opinion may be a little higher after a period of 10-15 years).

Returns.png

As we can observe from the above table, JEEVAN SHANTI (without taking Risk) guarantees today a life-long pension of 2,45,400/- p.a.

To achieve this pension, one has to expect his money to grow at 12% CAGR for the next 10 years if he considers investing in Equity Mutual Funds & then utilize the corpus to take up as pension after 10 years.

Conclusion: If you have a surplus amount that you want to park exclusively for your retirement & guarantee the pension pay-out today itself, then you may consider L.I.C’s Jeevan Shanti – a plan whose importance will be truly felt during your golden years of retirement.