MAHESH PAI lists out the key benefits of cancer insurance to ease the financial burden of a patient’s family.
In the modern world, health concerns are omnipresent and cancer ranks among the most dreaded diagnosis one can receive. The physical and emotional toll of battling cancer is significant, but the financial burden it imposes can be equally overwhelming. To address this, insurance policies specifically designed to alleviate the financial strain associated with cancer have gained prominence. Known as cancer insurance, this specialised coverage offers vital financial support upon diagnosis, complementing traditional health insurance. This article explores the importance of cancer insurance, its benefits, and how it differs from other critical illness coverage, aiming to help you make an informed decision about protecting your health and finances.
What is Cancer Insurance?
Cancer insurance is a supplemental insurance policy designed to target the financial implications associated with a cancer diagnosis and subsequent treatment. Unlike traditional health insurance plans, which cover a wide range of medical expenses, cancer insurance focuses exclusively on providing additional financial support for cancer-related costs. These may include expenses related to treatment, recovery, and long-term care, allowing policy-holders to manage the financial challenges that cancer often brings.
The Growing Need for Cancer Insurance
Cancer has become a significant public health issue in many parts of the world, including India and especially Goa. According to the Indian Council of Medical Research (ICMR), the country reports approximately 1.39 million new cancer cases each year and approximately 1400 cases emerge in Goa itself. Moreover, cancer accounts for about 8.5% of all deaths in India, with nearly 784,800 fatalities annually. The most prevalent cancers in the country are breast cancer, cervical cancer, oral cancer, and lung cancer. Early detection significantly improves survival rates; for instance, the five-year survival rate for early-detected breast cancer is approximately 90%.
These alarming statistics highlight the importance of having comprehensive coverage that can help manage the costs associated with cancer treatment. Cancer insurance is a response to this growing need, offering targeted financial protection that helps individuals focus on recovery rather than the financial strain.
Key Benefits of Cancer Insurance Cancer insurance provides a range of benefits designed to ease the financial burden at various stages of cancer, from early detection to advanced treatment. Here’s a closer look at how cancer insurance can support policyholders:
1. Multiple cancer stages coverage
Cancer insurance policies typically cover all stages of cancer, including the pre-cancer stage, the early Stage, and the major cancer stage.
• Pre-cancer stage: While coverage for pre cancer conditions may be limited, it often includes important preventive measures. Many policies cover routine screenings and diagnostic tests, such as mammograms, colonoscopies, and pap smears, which can identify pre-cancerous conditions. Some plans may also cover preventive treatments or interventions, such as procedures to remove or treat abnormal cells before they develop into cancer.
• Early stage of cancer: At this stage, insurance coverage becomes more comprehensive, encompassing various treatment options, and associated care. This includes surgery, radiation therapy, and chemotherapy. The policy may also cover hospitalisation, diagnostic tests, follow-up appointments, prescription medications, and rehabilitation services.
• Major cancer stage: For advanced or major cancer, extensive treatment and long-term management are often required. Cancer insurance typically covers advanced therapies like targeted treatments, immunotherapy, and even experimental treatments through clinical trials. Coverage may extend to palliative care, hospice care, home health care, and long-term care services; ensuring quality of life is maintained during this difficult period.
2. Financial security
One of the most significant benefits of cancer insurance is the lump sum payment provided upon diagnosis. This financial support can be used to cover various expenses not typically covered by regular health insurance, such as transportation costs, home care, or even lost income. This flexibility allows policy-holders to use the funds as needed, reducing the financial strain during a challenging time.
3. Flexibility and supplemental coverage
The lump sum payment provided by cancer insurance offers flexibility in managing expenses. Unlike traditional health insurance, where funds are often tied to specific medical costs, cancer insurance allows policyholders to allocate the payout according to their needs. This could include paying for experimental treatments, household expenses, or alternative therapies that are not covered by standard health plans. Moreover, cancer insurance serves as a supplement to existing health insurance, covering cancer- specific costs that may not be fully covered by a traditional plan. This reduces the financial burden on the policyholder’s overall finances, providing an additional layer of protection.
4. Tax benefits
Another advantage of cancer insurance is the potential tax benefits. Premiums paid for cancer insurance policies may qualify for tax deductions under Section 80(D) of the Income Tax Act, subject to prevailing tax laws. This not only provides financial relief but also makes cancer insurance a more attractive investment for long-term financial planning.
When should you consider buying cancer insurance?
Cancer insurance is best purchased when you are healthy and before any signs or symptoms of cancer appear. Purchasing insurance early ensures that you qualify for coverage without exclusions or higher premiums due to pre-existing conditions. You should consider buying cancer insurance if:
• You have a family history of cancer.
• Your current health insurance policy does not provide sufficient coverage for cancer-related expenses.
• You are at higher risk of developing cancer due to environmental factors or lifestyle choices.
Things to keep in mind when considering cancer insurance
When evaluating cancer insurance policies, there are several critical factors to consider:
• Coverage details: Ensure that the policy explicitly covers all stages of cancer, from early detection to advanced stages.
• Treatment coverage: Confirm that a wide range of treatments is covered, including surgery, chemotherapy, radiation therapy, targeted therapy, and immunotherapy.
• Exclusions and limitations: Review the policy’s exclusions and limitations, such as pre-existing conditions or specific types of cancer that may not be covered.
• Waiting periods: Be aware of any waiting periods before coverage becomes effective, as some policies may have waiting periods for specific types of cancer treatments or diagnoses.
Conclusion
Cancer insurance is an essential tool in safeguarding your financial well- being in the face of a cancer diagnosis. It provides targeted financial support, complements traditional health insurance, and ensures that you can focus on recovery rather than financial concerns.
By planning ahead and investing in cancer insurance, you can protect your savings and secure peace of mind during a challenging time. When considering cancer insurance, carefully assess your individual needs, review policy details, and consult with insurance professionals to make an informed decision that best suits your health and financial goals.
