Cancer insurance plan is a form of coverage that provides financial support to people who are diagnosed with the illness after the free look up time specified in the terms and conditions of the bought cancer insurance policy. A cancer-specific coverage covers the expenses of cancer diagnosis and treatment, such as hospitalization, chemotherapy, radiation, surgery, and so forth.
The money is normally paid out at different levels of diagnosis, such as minor, major, and critical. Cancer insurance plans, on the other hand, do not often provide death, maturity, or surrender benefits. At truth, it is not restricted to the actual cost of treatment in a hospital.
To be eligible for cancer insurance, the insured must not have any pre-existing cancer problems. Those who have previously been diagnosed with and treated for cancer are also ineligible for cancer insurance.
Cancer Types Covered by Cancer Insurance Plans (in the Early and Advanced Stages):
- Cancer of the lungs
- Breast cancer
- Cancer of the ovaries
- Cancer of the stomach
- Cancer of the hypolarynx
- Cancer of the prostate
Cancer Insurance Plans’ Advantages
- Covers a variety of cancer stages
- Lumpsum is paid out in the event of a cancer diagnosis.
- A premium waiver is offered under specific situations, such as a cancer diagnosis in its early stages.
- If no claims are filed throughout the year, the amount guaranteed is increased by a certain percentage.
- Monthly payments are made for a set number of years, subject to certain conditions, such as a major cancer diagnosis.
- Premium discounts are offered for plans that exceed a specified dollar threshold.
- Insurance coverage does not end after the first diagnosis.
- Section 80D of the Income Tax Act provides tax breaks.
1. What Is the Difference Between Cancer Insurance and a Critical Illness Plan?
A critical illness (CI) cover pays for expensive treatments for a range of specific critical diseases like stroke, major organ transplant, paralysis, cardiac arrest, multiple sclerosis, kidney failure, total blindness, deafness etc. Some tumours that are potentially fatal are also listed. After a policyholder is diagnosed with a covered critical illness, a typical CI plan provides a lump sum benefit that may be used for deductibles, treatments, co-pays, therapy, or any other connected expenditures. Because it exclusively covers certain critical conditions, CI insurance is less expensive than comprehensive medical insurance coverage. Critical illness insurance may be obtained as a standalone policy or as a rider to an existing life or health insurance policy.
However, one significant disadvantage is that such plans only cover cancer in its late stages. For instance, a critical illness plan will pay for cancer if a malignant tumour exhibits uncontrolled growth, with invasion and destruction of normal tissues at an advanced stage. Furthermore, a CI plan does not waive future payments, and the benefit of increasing amount insured is not available. The coverage terminates upon the identification of any of the listed diseases.
2. Downsides of a CI plan that make standalone Cancer policies a better safeguard against cancer:
- Does not cover complications arising from cancer
- If the policyholder develops cancer symptoms during the first 90 days (the normal waiting period in most plans), the plan is cancelled.
- There is no critical illness plan that covers early stage cancer. Those diagnosed with cancer after the waiting period is over cannot make claims until the cancer reaches an advanced stage
Why You Need a Cancer Insurance Plan
Cancer insurance is essential due to the domino impact this illness may have on families’ physical, emotional, and financial well-being. Also, even the best health insurance policy may not cover all cancer-related costs and if it does, there are conditions for coverage at different stages.
Cancer insurance is worth considering if:
- You have a cancer family history.
- If you feel you are at a greater risk of getting cancer owing to environmental or other factors,
- You might not have enough money to cover hefty medical expenditures.
- Your standard health insurance policy does not provide enough coverage.
- You are the sole member who earns money.
Exclusions in a Cancer Insurance Plan
- Cancer of the skin
- Any kind of cancer directly or indirectly caused by or contributed to by sexually transmitted diseases, HIV, or AIDS
- Cancer caused by a congenital or pre-existing disease; biological, nuclear, or chemical pollution; or exposure to radiation or radioactivity from any non-diagnostic or therapeutic source
Note: These are general exclusions. Specific exclusions may vary between insurers.
READ ALSO: 10 Life Insurance Myths That Need To Be Debunked
Things to Consider Before Buying a Cancer Insurance Plan
Weigh risk factor due to family health history: For those with a strong family history of cancer, purchasing cancer insurance makes a lot of sense. These individuals must revisit their current health insurance plan and analyse how a cancer insurance policy will compliment this current health policy. It is also important to remember that cancer insurance only kicks in if the policyholder is diagnosed with cancer, and will not offer coverage for any other chronic disease.
Two policies do not mean double coverage: Having a comprehensive health insurance policy plus a separate cancer insurance plan does not necessarily mean that one gets double the benefits. Most insurance policies come with a ‘coordination of benefits’ clause, stating that one plan will not cover expenses that the other plan does.
After careful analysis if you decide to go ahead and buy cancer insurance, check and compare as many plans as possible.