World Cancer Day is observed on February 4th each year, with the aim to increase awareness about cancer and its impact on people’s lives. According to the World Health Organization (WHO), about 10 million deaths worldwide are due to cancer every year, i.e. one out of every six deaths is due to cancer. This alarmingly high number underscores the need to be prepared for the possible financial impact of a cancer diagnosis. The cost of cancer treatment in India ranges between INR 5-25 lakhs. And having cancer coverage can help you with this expensive treatment. Here’s everything you need to know about cancer coverage plans:
What is a cancer cover plan?
Cancer cover is a type of insurance plan that provides financial protection specifically for cancer treatment. The insured gets a lump sum amount under this policy, which can cover the cost of diagnosis, treatment, and other related expenses such as hospitalization, surgery, and medication. It provides coverage at both early and advanced stages of cancer.
What are some options available?
- Indemnity-based cancer plan
This type of cancer insurance plan offers lifelong coverage, including the ability to renew annually even after making a claim. With an indemnity-based policy, policyholders are covered for hospitalization expenses up to the limit of the sum assured. This policy also covers pre-hospitalization costs for up to 30 days and post-hospitalization costs for up to 60 days from the date of discharge.
- Cancer fixed benefit plan
In the fixed benefit plan, policyholders receive a fixed sum assured upon the detection of cancer. This provides coverage for loss of income. Most of these plans don’t mandate hospitalization and cover all stages of cancer, providing compensation depending on the stage.
Who should buy it?
Cancer coverage is highly recommended for people who have a family history of cancer. People who work in high-risk occupations such as mining, firefighting, and aviation should also consider buying this plan. Additionally, for households that rely on a single income, buying cancer insurance coverage is particularly important as a cancer diagnosis can result in a financial burden.
What should you know before buying it?
When purchasing the policy, it is important to be mindful of the waiting period. It is always advised to select the shortest waiting duration, which will range between three to six months.
It’s a known fact that cancer treatments are expensive, and thus, it becomes crucial to opt for the maximum sum assured. The recommended sum insured is usually between Rs 15 -20 lakhs.
Always look for an insurance plan that offers coverage for maximum age; some offer up to 80 years. Cancer treatments are usually long, so the longer the plan, the more security it provides.
It is also important to check the cashless network of the insurance company. This refers to the list of hospitals and medical facilities that the insurance company has partnered with, where you can receive medical treatment without having to pay out of pocket.
Always choose a cancer insurance plan with the provision to forego the premium upon detection. This way, you will not incur out-of-pocket expenses if something unexpected happens.
What are some of the most common exclusions in this insurance?
Individuals who have pre-existing cancer or are already diagnosed with the disease are not eligible for this type of insurance. Additionally, it does not provide coverage for skin cancer or illnesses resulting from congenital conditions, biological, nuclear, or chemical contamination. It also does not cover exposure to radiation or radioactivity from non-diagnostic or therapeutic sources. Cancer caused directly or indirectly by STDs like HIV or AIDS is not covered either.
How is it different from health insurance?
Health insurance policies are suited for managing hospitalization, treatment, and diagnosis costs for minor illnesses. However, cancer insurance plans provide more comprehensive coverage, including all expenses related to cancer treatment, and a regular income during post-operative care. A cancer insurance policy is effective from the time of diagnosis and covers all stages of cancer progression. Both a health insurance policy and cancer cover are necessary for comprehensive coverage.
It is advised to thoroughly compare and analyse various cancer coverage plans online to make an informed decision. Always make it a point to read the fine print for a better understanding of exclusions in the policy. And buy the policy from a reliable company with a good settlement ratio.
The article is written by Siddharth Singhal, Business Head – Health Insurance, Policybazaar.com
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