Cancer Insurance: Why You Should Consider to Have it?

Cancer Insurance

In the current scenario, a Cancer Insurance policy has become one of the important requirements of life. “Cancer” this word has become a very deadly and dangerous word for us in India and in the world as well.

Breast Cancer, Cervical Cancer, Lungs Cancer, and Mouth & Oropharynx Cancer are very common in India. There are many other types of cancer also. The number of cancer cases and the costs of treatments both are growing rapidly.

Treatment costs of cancer disease is very expensive. Sometimes it is not affordable to many of us. In my opinion Cancer Insurance Policy is the best way to manage this kind of situation. It may be a good financial support option in case of cancer disease.

What is Cancer Insurance Policy?

A cancer insurance policy is basically a cancer-specific insurance plan. Especially, it covers the diagnosis and treatment costs of cancer disease only. Normally, this policy does not cover several diseases like regular health insurance policy.

This policy can be of two type:

  • Indemnity Policy: In this policy, you get the actual treatment costs as per your sum assured and condition in the policy.
  • Benefit Policy: In this policy you get the Lump-Sum amount as per your sum assured and conditions in the policy.

You must understand the features, benefits, terms, and conditions of your cancer insurance policy at the time of purchasing it.

Why You Should Have Cancer Insurance Policy?

If I guess, you are not earning money for the purpose of treatment of disease in the future. You are working hard and earning money to enjoy and live your life with happiness, fulfill your dreams, to educate your children, and for many other goals.

But all this may be a nightmare if there is any huge financial need for a treatment of a deadly disease like cancer. You can make a wise financial management decision by taking a cancer insurance policy.

In my opinion, here are some good reasons to have a cancer insurance policy:

1- If you don’t have sufficient funds to afford the treatment costs of cancer diseases in future then a cancer insurance policy may be a good financial backup option for you. The treatment costs of cancer disease in India are Huge and abroad it is multiple of it.

10 to 20 lacs rupees are the normal cost of treatment of cancer in India. So, it’s not easy to afford for everyone.

2- It will be a good option to protect your savings. Suppose you have a cancer insurance policy of sum assured of 20 Lacs rupees. You also have a saving of 20 lacs rupees. What will you do in case of a medical emergency situation ( suppose required 15 lacs rupees for treatment for cancer)?

Of course like everyone you will prefer your cancer insurance policy to afford these costs. So in this case your saving is protected because you had an insurance policy for this kind of medical emergency.

How Does Cancer Insurance Works?

Generally, there may be three-stages of cancer disease – Minor Stage, Major Stage, and Critical Stage. A best cancer insurance policy covers all stages of cancer disease. Cancer-specific policy covers diagnosis and treatment costs associated with cancer. This may include :

  • Hospitalization
  • Chemotherapy
  • Radiotherapy
  • Surgeries
  • Transplants
  • Medicines
  • Blood Transfusion, Nursing, etc
  • Other Related Costs

You will get full Lump-sum benefits or actual diagnosis and treatment cost? I would say it will depend on which kind of cancer insurance policy you have. It is a benefits policy or indemnity policy.

However, almost all insurance policies in India covers all type of cancer except few. For proper and specific details you must go through your insurance policy documents.

Cancer Insurance vs Regular Health Insurance

If you have a regular health insurance policy for you and your family then it is good. But it doesn’t mean that you should not have a cancer insurance policy. Both policy works in a different way. Having both the policy may be a wise decision.

You Can Also Read: 19 Tips to Select the Best health insurance policy

Cancer-Insurance-and-Regular-health-insurance
Cancer Insurance and Regular Health Insurance

Here are some basic difference between regular health insurance and cancer insurance policy:

Cancer Insurance PolicyRegular Health Insurance
In this policy, the Sum Assured is available on an individual basis.Sum Assured is available on Family Floater and Individual basis
Normally, the premium is cheaper in comparison to a regular health insurance policy.Premium is higher in comparison to cancer policy.
Generally, cancer-specific policy cover cancer disease onlyIt covers a wide range of diseases.
Waiver of premium option available in cancer insurance policy. This is a very good feature of a cancer insurance policy.Normally, a waiver of premium is not available in a regular health insurance policy. However, it depends on the policy.

Sum Assured Options And Premium

There are various sum assured options available in India. You can opt as per your budget and analysis. In my opinion you should opt for at least 10 to 20 lacs of sum assured. Because diagnosis and treatment costs of this disease are very high.

MaxLife Insurance, ICICI Prudential, SBI Life, Star Health Insurance, etc are having cancer insurance products. These companies have multiple sum assured options.

As of now, the premium of cancer-specific policy in India is not very high. However, the premium of your policy depends on the company and the sum assured you purchase.

Waiting Period in Cancer Insurance

Generally, there is an initial waiting period in every cancer insurance policy. Normally, there is an initial waiting period of 90 days from the commencement of the policy. However, in some cancer insurance policies, the initial waiting period is 180 days.

In some cancer-specific insurance, it may also be more than that also. You must check about the initial and other waiting specific period at the time of buying the policy.

Waiver of Premium in Cancer Insurance

Waiver of premium, as the name, suggest that your premium will be waived off. Some of the cancer insurance plans in India provide you the inbuilt feature of Waiver of Premium.

In this case, if you are diagnosed with cancer disease, your future premium gets waived for the specific period or for the entire policy terms. Generally, your future premium gets waived off when your claim is accepted by the insurance company.

WOP is very beneficial features of cancer insurance policy. In some insurance plans, it is available as a rider. You can opt it by paying an additional premium at the time of buying the policy.

Why Termination of the Cancer Policy?

There may be various specific reasons for the termination of your cancer insurance policy. It is possible from both the side.

1- Maybe you have purchased a policy but you are not satisfied with the products or its terms and you have given the request to cancel the policy. If you have raised your request within the Free Look Period then the company will cancel your policy and provide you a refund.

You Can Also Read: Free Look Period – How to cancel a Health Insurance Policy

2- Diagnosis of cancer within the waiting period. As I said above that every cancer insurance policy has an initial waiting period. If cancer is diagnosed within the waiting period company may cancel the policy and refund the premium ( Go through your policy terms for proper details).

3- The company may cancel your policy in case if you have done any misrepresentation or fraud in the policy.

4- The company will terminate you policy at expiry of the policy term.

The above are only a few points. There may be any other specific reason for the termination of the policy also.

Can You Buy Cancer Insurance Policy at the age of 67 Years?

Do insurance companies provide cancer insurance above 65 years of age? Mostly, insurance companies provide a cancer insurance policy on an individual sum assured basis and up to the maximum entry age of 65 years only.

However, the maturity of the policy may be above the age of 65 years. But if I talk about regular health insurance then of course there are few insurance companies who are providing regular health insurance policies above 65 years also.

Can You Buy Cancer Insurance if You have already Diagnosed with Cancer?

Star Cancer Care Gold: This policy covers the risk of recurrence of cancer/spread of cancer/Second cancer(unrelated to first cancer). This product was launched by Star Health on Pilot Basis.

You can purchase this policy even if you are already diagnosed with cancer and had cured.

The minimum entry age for the policy is 5 months and the maximum entry age is 65 years. The available sum assured options are 3 lacs and 5 Lacs Rupees. For more product-related details and terms you can also visit the Star Health insurance company website.

Does Positive Family History Affect Cancer Insurance Claim Benefits?

Almost all insurance companies ask the details of family history when you buy a cancer insurance policy. The first important thing, you must mention all the details carefully and honestly. If there is any positive cancer history in the family, you must mention it in the proposal form.

It depends on the company underwriting, that you get the policy or not. But if the insurance company has given you the cancer insurance policy after analyzing all the facts and data then there is no reason that company declines your claim on the ground of positive cancer history in the family.

If your insurance company has issued a normal policy after its underwriting then there should not be any impact of positive family history on cancer insurance claims. But I will advise you that you must read your policy documents terms after getting the policy.

If you find any specific clause related to family positive history and its impact on future claims then you must consult your company and you should understand it.

Conclusion

You should have a cancer insurance policy for a financial backup for medical emergencies due to cancer disease. You also get the tax benefits under section of 80D of the Income Tax Act 1961.

However, the Prevention of cancer disease should also be your first priority. You should follow healthy habits and healthy diets. You should also avoid smoking and other bad habits which cause cancer.