Cancer Health Insurance Plans: Ensuring Peace of Mind and Protection

Given the continuously growing number of cancer cases and the exceedingly high cost of treatment, Cancer Insurance has become a vital requirement. Sadly, many individuals are still not aware of Cancer Health Insurance. This article elucidates what is a Cancer Health Insurance plan and its importance.

What Is Cancer Insurance?

Cancer treatments are expensive, and even with health insurance, many people find themselves paying large out-of-pocket costs. This is where Cancer Health Insurance can provide peace of mind and protection.

Cancer Insurance is a type of health insurance designed to provide coverage for the expenses related to cancer treatment and care. It prepares you financially for the often-costly treatments involved in cancer care, like chemotherapy, radiation therapy, surgery, and prescription drugs. Many health insurers in India offer a variety of Cancer Insurance Plans. Having adequate Cancer Insurance Coverage enables patients and their families to focus on their health and recovery without worrying about finances.

Cancer Insurance can be a valuable investment for protecting yourself financially in case of a cancer diagnosis. If you are concerned about the cost of cancer treatment due to your lifestyle or family history, then purchasing a Cancer Health Insurance plan is wise.

[Read: How to Choose the Right Cancer Insurance Policy for Your Needs and Budget]

[Read: 7 Best Reasons to Buy a Cancer Insurance Policy in India]

[Read: Top 10 Factors to Consider When Buying a Cancer Insurance Policy]

What Are the Benefits of Cancer Insurance Coverage?

Cancer Insurance policies from top insurers are available at affordable premiums.

• Upon diagnosis of major cancer conditions, the insurance company pays a lumpsum amount equivalent to 100% of the sum assured.

• In the event of early detection, many insurers waive premiums or provide 25% of the sum assured, or sometimes both.

• For each policy year with no claims made, most insurance companies increase the sum assured for the following year.

• On a diagnosis of major cancer conditions, several insurance companies provide an additional benefit of monthly income for a specified number of years. However, the Cancer Insurance Premium can be higher for these policies.

How Does the Cancer Health Insurance Plan Work?

Similar to a standard health insurance policy, when you buy Cancer Insurance, you make regular payments known as premiums to the insurance company. In return, the insurance company offers coverage for cancer-related expenses up to a predetermined limit. The extent of coverage and premium amount are determined by the chosen policy.

To illustrate how a Cancer Insurance Policy works, let's consider the case of my aunt - Vidya, a 25-year-old banker by profession, who bought a Cancer Insurance Policy for her mother with a coverage term of 30 years and a sum insured of Rs 20,00,000. After just a couple of years, her mother was diagnosed with stage one breast cancer. The insurer paid her 25% of the sum insured, which amounted to Rs 5,00,000. Consequently, the remaining coverage under the policy was Rs 15,00,000.

Over the next five years, in May 2023, her cancer advanced to a severe stage. Recently, the insurance company paid the remaining sum insured amount of Rs 15,00,000, and the policy was terminated.

It is important to note that the payout from the policy is based on the stage of cancer diagnosed. Upon receiving the lumpsum payment, the policyholder can utilise it to cover various expenses related to the cancer diagnosis, including medical bills and treatment costs, as well as to compensate for any lost income. Furthermore, the payment is typically tax-free.

The Importance of Cancer Insurance Coverage:

According to the Indian Council of Medical Research (ICMR), the number of cancer cases in India is increasing at a concerning rate, and the situation is unlikely to improve. While there could be multiple reasons for the occurrence of cancer, Tobacco-related Cancer constitutes around 30% to 40% of all cancer cases in the country. The World Health Organisation (WHO) reports that 1 in 6 deaths are attributed to cancer. The main reason for the escalating number of deaths is the lack of awareness about the disease, leading to undetected and untreated cases. Many people in India continue to live with undiagnosed cancer until the first sign or symptom appears. However, early detection can prevent premature death. Individuals can ensure timely treatment without financial strain by obtaining Cancer Insurance coverage.

Apart from this, there is also a lack of awareness of the growing medical inflation in India. Depending on the type and stage of cancer, patients may require various treatments such as chemotherapy, radiotherapy, kidney transplant, bone marrow transplant, liver transplant, heart transplant, and more. With the increasing number of cancer cases and rising medical costs, the expenses associated with these treatments are also escalating. Arranging funds while battling the disease can cause financial stress and impact one's mental well-being. Yet, having a Cancer Insurance Plan can alleviate these concerns. The insurance company takes care of medical expenses. It may also provide the patient with a monthly income for a specified number of years, cover childcare expenses, offer loss of income benefits, and more.

Cancer Insurance Policies typically offer coverage for all stages and types of cancers (except for any specific types or conditions mentioned in the policy exemptions), such as lung cancer, breast cancer, liver cancer, stomach cancer, ovarian cancer, etc. This broad coverage is often available at an affordable premium. However, it is advisable to review the list of included and excluded cancers in the policy before making a purchase, as certain types of cancers, like skin cancer or cancer caused by sexually transmitted diseases, may not be covered by some insurers.

To conclude:

Cancer Health Insurance Plans provide much-needed peace of mind and protection against the growing threat of cancer. With rising cases and medical expenses, these policies serve as a crucial safety net, covering treatments and offering lumpsum payouts on diagnosis. Moreover, early detection benefits, increased sum assured for claim-free years, and additional monthly income during treatment add further value. Many reputable insurers offer affordable Cancer Insurance policies, ensuring financial barriers don't hinder timely healthcare. You may also get an additional discount if you get an online Cancer Insurance Plan. By choosing Cancer Insurance, individuals can face cancer with greater confidence, knowing they have the necessary financial support to navigate this challenging journey.

KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.