Insurance

Should You Buy Cancer Insurance?

Should You Buy Cancer Insurance?

Introduction

Let us assume that you are Rekha, 35, free from any illness. But, one fine day, you feel immense pain around your breast area; after conducting certain tests, you get to know that you are suffering from the first stage of breast cancer. 

Now, what?

At the initial stage, she had the bank balance to run her treatment expenses, but after a couple of chemotherapies, Rekha started facing a financial crunch. It added to her emotional stress leaving her in a dilemma about her family and treatment expenses. 

If you don’t wish to be the next Rekha, you should consider investing in a cancer insurance plan, especially if you have a medical history of cancer in your family. It’s better to be safe than sorry with zero financial support in dire need of monetary assistance.

This blog will help you in understanding,

  • The importance of cancer insurance
  • Why should one consider cancer insurance in their kitty?
  • What are the benefits of having a cancer insurance policy?
  • What are the factors to consider before buying a cancer insurance plan?
  • What are the best cancer insurance plans available in India?

What is a Cancer Insurance Plan?

Cancer insurance is a robust insurance policy that covers all the hospitalization costs when diagnosed with cancer (irrespective of its stage of severity). It is good to have health insurance cover, but they also come with certain restrictions and won’t be enough to cover the economic flow caused due to cancer because it’s a pricey treatment. Also, cancer treatment entails dozens of non-hospitalization costs that aren’t covered under standard health insurance coverage.

As per Risk of Cancer Development in India, a well-researched report published on the National Centre for Biotechnology Information website, the risk of developing cancer for men from the age of 35 – 64 years is 4.67%, and women falling under the same age group has a threat level of 6.55%, with a lifetime risk of 9.05% for former and 10.2% for the latter.

Note: Also, as per the given stats and research, 1/10 and 1/8 are likely to be diagnosed with some cancer type after 35 years. 

For instance, you are Vishnu, a mid-age adult earning 15 LPA, hailing from a middle-class family, and a sole bread earner. One fine day, a happy soul goes for a complete body check-up and finds out that he has stomach cancer. Even though he had health insurance, it wasn’t enough to take the cancer-related medical payments’ pricey load. 

To avert oneself from stressful situations, one must always be prepared for the worst possible condition. Cancer insurance is not a cure to the deadly disease, but it relieves one stress of financial burden on family.

It is why investing in the right cancer insurance plan from the right insurer is essential. Also, not every insurance company gives the same perks and features in their cancer insurance plans. Therefore, be wise rather than investing in a futile plan that turns out to be a mere help at the time of need. 

Reasons to Buy a Cancer Insurance Policy

Some of the benefits of having cancer insurance plans are as follows:

Cover every Cancer-Related Spending: As regular health insurance cannot cover severe diseases like cancer, the dedicated insurance type is tailored to handle the treatment and other non-hospital-related costs. However, the elements of cancer coverage differ based on the provider’s policies.

Avoid Unnecessary Cash Flow: You should invest in a cancer insurance plan because it’s better to hold your funds rather than allow ruthless cash flow. Cancer costs can jump up to 50 lakhs depending on the stages and the severity of cancer. Such treatment-related prices are enough to create a vacuum in your bank balance.

Have Cancer in Family Medical History: If you hold a medical history of cancer in your family, it is wise to bag a cancer insurance plan beforehand rather than wait to get it diagnosed. 

Things to Consider Before You Buy Cancer Insurance Plan

Before purchasing a cancer insurance plan, you should keep a few things: the survival period, death benefit, eligibility, exceptions, sum assured, and other insurance-related things. 

Coverage: This is one of the crucial points you should know before purchasing a cancer insurance policy. Be sure about the stages they cover and the sum assured and death benefit percentage. Therefore,  be sure that the chosen cancer insurance not only accumulates in the early stages but also if your treatment costs soar after a diagnosis of cancer in its advanced stages. 

Benefits: As cancer insurance not only means that it should give you monetary coverage but also provide additional provisions that talk about premium payment, income benefit, grace period, and many more. You should know about the payout system assured by the insurance company.

Waiver Benefits: A cancer insurance plan should commence when the policyholder is diagnosed with cancer. And, it should cater to all financial obligations and free the policyholder from paying for future premiums for a certain period. Always look for cancer insurance that would provide you with waiver benefits because it would be difficult to pay the future premiums due to a financial halt in your bank account. Because returning to work after an advanced cancer stage would be time-consuming, this tool can be a lifesaver in such testing time.

Exceptions: Cancer insurance is undoubtedly financial support at the need of the hour, but the insurance policies also come with certain restrictions and exceptions.

For instance, cancers are caused by sexually transmitted diseases – HIV or AID. Apart from that, if the policyholder ends up having cancer due to excessive drinking, drugs, tobacco, or medications not prescribed by a medical practitioner, they would not be supported by the cancer insurance. 

Furthermore, if you have a congenital cancer predisposition, you are not eligible for cancer insurance.

What are the Best Cancer Insurance Plans in India?

After having some basic knowledge about the cancer insurance plan and other related information, let us go through the best cancer insurance plans in India, and they are as follows:

Aditya Birla Sun Life Insurance Cancer Shield Plan

This inclusive cancer insurance plan provides monetary support to the cancer-affected policyholder. ABSLI Cancer Shield Plan offers beneficial shelter for both early and advanced stages of cancer, where 30% of the Sum Assured is given to the policyholder if they are diagnosed with early-stage cancer. In contrast, the remaining 70% of the sum assured is released at the advanced cancer stage. However, the policyholder can acquire 100% Sum Assured if they are detected with the severe stage at the initial phase. 

Some of the features and benefits of this cancer insurance policy are as follows:

  • Based on the need, it provides a decent chunk of payout at both cancer stages. 
  • Premium Waiver Benefit 
  • Under the Income Tax Act, you can avail of tax-related benefits.
  • Under the income benefit, the insured can use this highly beneficial where they can avail it for the following five years, with a monthly payment equivalent to 1% of the Sum Assured.

Aditya Birla Activ Safe Cancer Protection

This cancer insurance plan by Aditya Birla covers cancer in all three stages:

  • Early
  • Major
  • Advanced

This particular cancer insurance plan pays 50% of the sum insured in the early stages, 100% in the major stages, and 150% of the sum insured when the advanced stage is identified.

Some of the features associated with this cancer insurance plan are as follows:

  • They offer tax-related benefits
  • They offer the wellness coach as an alternative
  • They offer the policyholder a second e-opinion
  • Survival period of 7 days

Conclusion

A cancer insurance plan is one of the needed assets that one can own to think that there is a high possibility of getting infected with cancer. But, before purchasing the plan, you should be aware of the required type, coverage, stages of cancer covered, additional features and perks, and other related factors. 

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