Before buying cancer insurance, consider this checklist to ensure you make an informed decision.
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Whenever we hear the word cancer, it brings dread and fear. We pray it never occurs to anyone around us for it can destroy lives forever. However, if it does occur, then its financial ramifications can be tackled by being proactive and buying a Cancer Insurance plan. Read ahead to know about a checklist before buying this type of insurance coverage.
A Cancer Insurance plan supplements other life and health insurance plans by offering coverage against different types of cancers. Usually, these plans are offered as fixed-benefit covers that pay a lump sum benefit upon the disease’s diagnosis. Cancer Insurance plans are curated to aid people against risks that come with cancer. In life insurance, you can extend your existing coverage by picking cancer-covering add-ons/plans.
Here’s a section highlighting crucial points to note before purchasing a Cancer Insurance (CI) plan.
Most cancer insurance policies cover different cancers except for skin cancer. Cancer due to sexually transmitted diseases like AIDS or HIV is also a common exception. Also, people are not eligible if they are suffering from a pre-existing condition.
The payout received from a Cancer insurance policy is segregated into the different stages based on the severity of the case. In other words, the amount received will depend on the cancer stage and claims previously admitted under the policy. The stages of cancer treatment are generally diagnosis, treatment, and surgery. Pre-cancer stage, early-stage & major stage cancer treatments are covered under the plan.
One of the chief aspects that should be considered while buying the cancer insurance plan is the reputation of the insurance company. For that, people need to focus on the Claim Settlement Ratio, features and services, and efficiency of the team to cater to the different needs and concerns of the customer.
Here are three key points that highlight the difference between cancer insurance and health insurance without any add-on. Note that both life insurance plan and health insurance plan have their merits and clubbing cancer-specific coverage with either can be helpful. Ultimately, the decision is based on your insurance needs and financial planning.
Specific cancer insurance
Generic health insurance
A Cancer insurance plan provides specialised coverage. These plans are usually intended for long-term coverage and can span a period of 20 years. It could be purchased to supplement any basic insurance policy as it provides specialised care that is not available with a basic plan.
Health insurance offers generic coverage unless specific add-ons like Critical Illness are chosen.
It covers the expenses incurred by the insured in case they contract cancer. Along with extensive coverage throughout the illness period, cancer insurance also provides a regular income source to the insured during the post-operative care phase.
Health insurance covers basic medical and hospitalisation expenses incurred by the policyholder.
A Cancer insurance plan provides coverage straight from the diagnosis time. For instance, it covers expenses regardless of whether the cancer is detected at a minor or major stage or progressing from minor to major stage. However, it is important to note that the benefits received by the policyholder will differ in terms of the compensation paid.
Health insurance primarily covers the medical, surgical and hospitalisation expenses. These plans often place limits on the expenses incurred by the policyholder.
Here are some of the key benefits of Cancer Insurance plans.
Financial assistance: Cancer treatment can be very expensive, and cancer insurance plans provide the necessary cushion of financial protection against the high costs of cancer treatment. These plans can help cover the cost of chemotherapy, radiotherapy, surgery, hospitalisation, and other expenses related to cancer treatment.
Lump-sum payment: Some plans in India offer a lump-sum payment upon diagnosis of cancer, regardless of the actual cost of treatment. This payment can help individuals cover their medical expenses and provide financial support during their treatment.
Comprehensive coverage: Some plans provide coverage for various stages of cancer, from early stage to advanced stages. They may also offer coverage for various types of cancer, including breast cancer, lung cancer, prostate cancer, and others.
Tax benefits: Policyholders can claim tax deductions on the premium paid towards their Cancer Insurance plan as per applicable terms and conditions.
Additional benefits: Some Cancer Insurance plans in India may offer additional benefits such as wellness benefits, second medical opinion, and coverage for post-treatment care.
An ideal cancer coverage should have a high sum assured, wide coverage, customisable features that tailors to different buyer’s needs. Waiving off premiums on diagnosis, no claim bonus, payment methods, renewability periods should be taken into consideration.
Yes, most Cancer Insurance plans cover the cost of chemotherapy.
Yes, death by cancer is usually covered under a basic life insurance plan. However, buying a specific cancer plan/add-on can help manage the expenses while the diagnosed policyholder is still alive.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.