Keywords: life insurance plans, cancer insurance
The word “cancer” evokes dread and fear. We hope it never happens to anyone around us, as it can devastate lives forever. Did you know that cancer cases in India have doubled in just 26 years? Worse, the number is only increasing, putting us at more risk than ever before. Research also shows that, while most cancers are curable with high success rates, India lags behind because most people do not find treatment affordable or accessible. So, in an unforeseeable event, if you were obliged to have cancer treatment for yourself or any of your family members, would you be able to finance it, or would you leave it to chance? Did that question make you nervous?
However, if it does occur, the financial consequences can be mitigated by being proactive and purchasing a Cancer Insurance policy beforehand. So, how can you find a good plan? Read on to learn about a checklist you should follow before purchasing cancer insurance.
What is a Cancer Insurance Plan?
Cancer insurance plans are designed to financially protect people against the risks associated with cancer. One should keep in mind that Cancer insurance doesn’t replace life insurance plans. Rather, it should be considered as a supplement. So, be sure you grasp the distinction between the two. Similarly, a critical illness plan may not provide any benefit upon the insured’s death, whereas a term insurance plan will. A cancer insurance plan supplements other life and health insurance plans by providing coverage for various types of cancer. Typically, these plans are provided as fixed-benefit plans that pay a flat sum payout upon disease diagnosis.
What are the benefits of Cancer Insurance Plans?
Here are some of the major advantages of buying Cancer Insurance coverage.
Financial assistance: Cancer treatment can be quite expensive, and cancer insurance plans give the essential financial cushion to offset the high costs of cancer treatment. These plans can assist in paying for chemotherapy, radiation, surgery, hospitalization, and other cancer-related expenses. Some policies in India provide a lump-sum payout upon cancer diagnosis, regardless of the actual cost of treatment. This payout can assist individuals meet medical bills and provide financial support while undergoing treatment.
Comprehensive coverage: Some plans cover cancer stages ranging from early to advanced. They may also provide coverage for different forms of cancer, such as breast cancer, lung cancer, prostate cancer, and others.
Tax benefits: Subject to applicable terms and circumstances, policyholders may claim tax deductions on the premiums paid for their Cancer Insurance plan just like one can claim deductions on life insurance plans.
Points to consider before purchasing a cancer insurance plan
Eligibility for cover: The types of cancers to which you may be susceptible based on factors such as heredity, lifestyle behaviours, and screening test results will determine your eligibility. One should understand that skin cancer is not covered by most cancer insurance policies. Moreover, the cancer caused by sexually transmitted infections such as AIDS or HIV is a common exception. In addition, those with pre-existing conditions are also ineligible to buy a cancer insurance plan.
Stages of severity: Cancer treatment typically consists of three stages: diagnosis, treatment, and surgery. The plan covers pre-cancer, early-stage, and major-stage cancer therapies. The reimbursement from cancer insurance coverage is divided into stages dependent on the severity of the disease. In other words, the amount the individual will receive will be determined by the cancer stage and past claims admitted under the policy. Check the severity levels of your cancer insurance policy’s term to get a better understanding of the benefits you can expect to receive.
Track record of the insurance provider: When purchasing cancer insurance, one of the most important factors to consider is the insurance company’s reputation. A high claim settlement percentage, customer-friendly policies, and service efficiency are all critical considerations not just for cancer insurance but for life insurance plans as well as for health insurance plans.
Comprehensive cancer coverage: There are three phases of cancer: pre-cancer, early stage, and critical stage. A plan with stage-based rewards will help you fight the disease more successfully. A typical cancer plan pays 20-25% of the total sum assured at the primary stage and 100% of the whole sum assured during the critical stage. Furthermore, it is critical to determine whether the payout at each stage will be sufficient for the treatment.
Check the waiting period: The waiting time is the most significant aspect of any insurance plan. The policy takes effect after a predetermined number of days after the purchase date. Most Cancer Insurance Plans last between three and six months.
Look for Premium waivers: If you are diagnosed with cancer, your premiums for cancer insurance will be waived for a particular period of time, depending on the plan. This provides a financial cushion and relieves you of the requirement to pay premiums on a regular basis. Before purchasing a cancer policy, check the premium waiver provision.
Check the Income Benefits: When you are diagnosed with cancer, your productivity decreases. This, together with the expense of therapy, can have a considerable impact on your finances. One of the primary advantages of cancer insurance policies is that they provide financial support for you and your family through monthly payouts. It ensures that your family’s everyday expenses are covered. Check to see if the plan’s income benefits satisfy your expectations and cover all of your expenses.
At last,
Purchasing cancer insurance is a wise decision that can help you secure your future. However, you should be aware that it is not as simple as pulling anything from the shelf. There are several factors to consider before deciding on the best plan for you. In addition to a high sum assured and comprehensive coverage, a good cancer insurance policy should have features that provide simplicity and peace of mind. Some of these include premium waivers on diagnosis, a no-claim bonus (an increase in sum assured), the possibility to increase the sum assured, a short waiting period, monthly payments for out-of-pocket expenses, and more.
