HDFC Life Cancer Care Plan

HDFC Life Cancer Care Plan is a health insurance plan which covers against cancer. The plan provides a benefit when the life insured is diagnosed with cancer, either in early stages or in major stages. Moreover, the plan also waives the future premiums if the plan benefit is paid for cancer.

Key features of the plan

• The plan pays a lump sum benefit if the life insured is diagnosed with cancer during the tenure of the plan.
• The benefit paid depends on the severity of cancer diagnosed
• Premiums for the next 3 years are waived when the insured is diagnosed with cancer and the plan benefit is paid.
• The plan benefits do not depend on any other health insurance plan bought by the life insured. The benefit would be paid even if any other health plan pays any benefit.
• Premium discounts are also available under the plan.
• Premiums paid under the plan, up to Rs.55, 000, are exempted from tax under Section 80D.

How does the plan work?

Step 1 – the policyholder chooses the Sum Assured.

Step 2 – the policyholder then chooses the plan tenure and whether the premium would be paid annually, half-yearly, quarterly or monthly.

Step 3- If the insured is diagnosed with malignant cancer which is called Carcinoma-in-Situ, early stage cancer or major cancer, the plan benefit is paid. The benefit payable would depend on the severity of the cancer diagnosed.

Step 4 – future premiums for the next 3 years are waived off if the life insured suffers from malignant cancer or early stage cancer and the plan benefit is paid.

Step 5 – if the life insured dies during the plan tenure, no benefit is paid

Step 6 – if the insured survives the plan tenure, no benefit is paid.

Example

Sneha, aged 50 years, buys the Cancer Care plan for a Sum Assured of Rs.10 lakhs and chooses a term of 10 years. the premium which she is required to pay comes to Rs.3, 613 exclusive of taxes.

Option 1 – Sneha gets diagnosed with Carcinoma-in-Situ in the 3rd year of the plan. On her diagnosis and after she survives 7 days post such diagnosis, she is paid 25% of the Sum Assured which is equal to Rs.2.5 lakhs. Her future premiums are waived off for the next three years and Sneha would be required to pay a premium from the 7th policy year. Later, Sneha’s cancer develops into a major one. In this case, Sneha is paid the Sum Assured less any benefit already paid. Thus, she gets Rs.7.5 lakhs (Rs.10 lakhs – Rs.2. lakhs)

Option 2 – Sneha gets diagnosed with an early stage cancer in the 5th policy year. She is paid Rs.2.5 lakhs (25% of the Sum Assured). Her future premiums are waived off for the next three years. If she is treated and the cancer does not become a major one, Sneha does not get any other benefit during the plan term, on death or on maturity of the plan.

Option 3 – Sneha gets diagnosed with a major cancer in the 5th policy year. She would be paid 100% of the Sum Assured, i.e. Rs.10 lakhs as she was not diagnosed with any early stage cancer or Carcinoma-in-Situ.

Option 4 – Sneha survives the entire plan duration without falling sick to cancer. No benefit would be paid when the plan matures.

Option 5 – Sneha dies during the plan tenure without suffering from cancer. No benefit would be paid.

Plan benefits

• Cancer benefit – if the life insured is diagnosed with cancer, the plan benefit is paid. The amount of benefit paid would depend on the diagnosis and is as follows:
  If the life insured is diagnosed with early stage cancer or Carcinoma-in-Situ (malignant cancer) – 25% of the Sum Assured is paid
  If the life insured is diagnosed with a major cancer – 100% of the Sum Assured would be paid after deducting any earlier benefit paid for early stage or malignant cancer.
  After the benefit is paid for early stage cancer or malignant cancer, premiums for the next three years are waived off.
• Death benefit – if the life insured dies during the plan tenure, no benefit would be payable.
• Maturity Benefit – if the chosen tenure of the plan expires and the life insured survives till the plan tenure and is not diagnosed with cancer, no benefit is paid.

Eligibility Criteria

What is not covered in the policy?

• Cancer diagnosed within the first 180 days of plan commencement is not covered by the plan.
• After the diagnosis of cancer, if the life insured dies within the first 7 days of such diagnosis, no benefit would be paid.
• Pre-existing ailments giving rise to cancer would not be covered in the first 4 years of the policy.
• Any major cancer, early stage cancer or Carcinoma-in-Situ suffered due to HIV/AIDS, congenital conditions, pre-existing ailments, alcohol or substance abuse, nuclear or biological contamination, etc. would not be covered by the plan.

Premium Illustration

Below are the sample rates of premium (exclusive of any tax) payable by a non-tobacco user male for a combination of different ages and term. The Sum Assured is taken to be Rs.15 lakhs and premiums are paid annually for the entire duration.