What Makes it Important to Buy Cancer Insurance?


Yes, you may already have a regular health insurance plan but you can consider opting for a cancer insurance policy too. This is even more necessary in today’s times with risks of cancer having gone up due to unhealthy lifestyles and several other factors. As per scientific reports, India is expected to have more than 880, 000 deaths linked to cancer by the year 2020 along with a whopping 1.73 million new cases of people suffering from cancer. This is alarming to say the least. Along with the mental aspect of the illness, the financial burden also wipes out households monetarily as it has happened in countless cases. This is where a cancer insurance plan can come in really handy. Buying a stand-alone dedicated cancer insurance policy will be a boon at least from the financial aspect and ensure proper treatment for the individual in question.

You can buy cancer insurance online or offline depending on your requirements but make sure that you compare plans in order to get the best cancer insurance scheme for yourself. These plans usually come with lump sum payouts upon detection of cancer. This fixed amount is usually a pre-fixed percentage of the sum assured in the policy and depends on the cancer stage that has been diagnosed. There are no sub-limits which are applicable in this case like in many health insurance plans. The full coverage amount is paid out upon detection and hospitalization is not required for getting the claim amount sanction.

This reduces all hassles of applying for cashless hospital claims or spending time and effort in getting reimbursements post payment of expenditure from your own pocket in such situations. The person diagnosed can focus on treatment without bothering about the huge medical bills. A cancer plan usually has coverage for 2-4 stages which are CIS (Carcinoma In Situ), major stage, early stage and critical stage. In terms of payouts, insurance companies usually combine these stages and pay for the first two and last two respectively. There are other plans which have payments for all these stages in a separate manner or in other combinations.

All premiums payable in the future are waived for 3-5 years or even more once the claim is accepted upon diagnosis of cancer. The monthly income benefit is paid out up to 1% of the sum assured for a particular time period which is mostly 3-5 years. Some insurance companies pay this sum in addition to the sum assured while others include this in the sum assured. Insurance companies also have coverage increase options by 10% annually. This helps in keeping pace with rising costs of cancer treatment. The premiums are also not as costly as you would originally think. Choose your policy after making sure that there is a payout of a percentage of the sum assured for at least two stages. Ascertain payout benefits at every stage and combined benefit of the plan. Check whether the sum assured will go up annually or remain the same up to a particular limit and also check the premium rates which will increase whenever the sum assured goes up.

Also, check for waiting periods and survival periods which apply for the plan. Go for policies which have longer periods of coverage. There are tax benefits on this plan up to Rs. 25, 000 under Section 80D.