A medical emergency like cancer can be financially draining due to the escalating cost of healthcare. The protection of a cancer insurance plan can be invaluable in this situation. You can get the best medical care without worrying about the treatment costs if you have cancer health insurance.
Keep reading to learn all that you need to know before buying a cancer insurance plan.
What is Cancer Insurance?
It is a specific type of health insurance plan that offers financial support during the diagnosis and treatment of cancer. Here is an overview of its salient features:
Provides a one-time payment upon diagnosis to lessen the financial strain associated with cancer treatment.
Cancer insurance offers coverage for everything from hospital stays and medical fees to prescription drugs and even non-medical expenses like travel and lodging.
Such policies cover the expense of hospitalization, radiation therapy, chemotherapy, and surgery.
Certain cancer insurance plans include further advantages like income benefits, premium waivers, and coverage for associated medical costs.
During a difficult period, these benefits might offer additional financial support and relief.
Advantages of Cancer Insurance Plans
The following are some of the main advantages of purchasing a cancer insurance policy:
Lump Sum Payout
When the insured is diagnosed with cancer, they receive a lump sum payment.
Multiple Cancer Stage Coverage
Regardless of the stage when the policyholder was diagnosed, it covers various cancer stages and provides the claim amount.
No Claim Bonus
The sum insured automatically rises by a certain percentage if no claims are filed throughout the policy year or the insurer gives a renewal premium discount.
Premium Waiver Advantage
Under certain circumstances, such as an early-stage cancer diagnosis, the premium for some cancer insurance plans is waived.
Coverage Continuum
Specific cancer insurance plans continue providing coverage even after the initial diagnosis.
Monthly Payout
Some cancer insurance plans pay the sum insured as a monthly income for a predetermined number of years. However, there can be certain restrictions. So, it is best to read the policy terms and conditions before purchasing.
Tax Benefits
Cancer insurance premium payments are eligible for tax deductions under Section 80D of the Income Tax Act.
How Does a Cancer Insurance Plan Work?
The moment someone is diagnosed with cancer – their cancer insurance coverage comes into effect:
After the diagnosis is confirmed, the insurer makes a lump sum payment equal to the sum insured.
The money can be spent to make up for lost wages or to pay for cancer treatment.
Additionally, the claim amount is typically provided at different points in the diagnosis process, such as minor, major, and crucial stages.
However, death, maturity, or surrender benefits are not provided by cancer insurance policies. Also, the policyholder is not permitted to submit a claim during the first ninety days, which is typically the waiting time that most policies specify for cancer insurance.
Why Choose Cancer Insurance?
Since cancer treatment is expensive and typically takes an extended period, it is crucial to purchase a cancer insurance policy.
Not all of the expenses associated with cancer treatment may be covered by even the leading health insurance plans.
Patients might avoid depleting their resources by using a cancer insurance plan to cover the costly and protracted cancer therapies.
This makes it possible for patients to get comprehensive care at the best hospital without compromising.
If the family's primary provider receives a cancer diagnosis, the claim amount may also serve as a replacement for lost income.
Exclusions of Cancer Insurance Policies
Typically, a cancer insurance policy does not cover the following illnesses or ailments:
Any type of cancer that is either directly or indirectly brought on by HIV, AIDS, or other sexually transmitted diseases
Any cancer brought on by exposure to radioactivity or radiation from any source, whether diagnostic or therapeutic
Cancer is induced by chemical, biological, or nuclear pollution.
Any congenital abnormality can cause cancer.
Note: These are broad exclusions. Different plans may have varying exclusions.
Differences Between Critical Illness and Cancer Insurance Policies
Here are the main distinctions between plans for critical illness insurance and cancer insurance:
Category | Critical Illness Insurance | Cancer Insurance |
No Claim Bonus (NCB) | There is no NCB or cumulative bonus available | Every year without a claim is eligible for NCB and cumulative bonuses |
Complication Coverage | Excludes any complications brought on by malignancy | Includes all cancer-related complications |
Pre-existing Cancer | Cancers that already exist are not covered | After a waiting time, pre-existing malignancies are covered |
Cancer Stages Covered | Only advanced stage cancer is covered by the majority of critical illness insurance plans | All stages of cancer are covered by cancer insurance coverage |
Premium Waiver Benefit | There may or may not be a premium waiver benefit | There is a premium waiver benefit |
Disease Diagnosis | The claim amount is paid if the condition is diagnosed for the first time during the policy year. | It pays the claim amount for cancer diagnosed within the policy year and before buying the policy. |
Coverage Scope | Covers a variety of medical treatments for serious conditions such as multiple sclerosis, stroke, paralysis, organ transplants, kidney failure, cardiac arrest, etc | Cancer insurance pays for the treatment cost of cancer and its complications. |
Who Needs to Purchase Cancer Insurance?
Here are the people who should consider purchasing a cancer insurance plan:
Individuals who are more likely to get cancer due to environmental or other reasons
If someone has a family history of cancer
Their savings are insufficient to cover significant medical expenses
The owner of the policy is the family's sole provider
The sum insured under their standard health insurance coverage is insufficient to pay for cancer treatment
Considerations Before Purchasing a Cancer Insurance Policy
Before purchasing a cancer insurance plan, the following factors should be taken into account:
A Family Record of Cancer
Getting cancer insurance is advised for people who have a significant family history of the disease. These individuals need to consider how cancer coverage will enhance their existing health plan.
Compare Policies Online
You should compare cancer insurance plans online according to factors, including coverage, features, premiums, and more. After conducting thorough research, you should review and compare as many cancer health insurance policies as you can before deciding to purchase one.
Two Plans Do Not Imply Double Coverage
Double benefits are not always possible if you have a second cancer insurance plan in addition to your comprehensive health insurance policy. The "coordination of benefits" clause found in the majority of insurance policies guarantees that costs covered by one plan will not be covered by the other.
If you are looking for a cancer insurance plan that checks all the boxes, look no further than the Star Cancer Care Platinum Insurance Policy. It offers cashless treatment in 14,000+ network hospitals, requires no pre-medical screening and covers pre-and post-hospitalization expenses, along with ambulance charges.
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