Is Cancer Insurance Worth Investing In?

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Cancer is a chronic condition; its treatment may be prolonged and is very expensive, often making it unaffordable for many people. When a loved one is diagnosed with cancer, your emotional well-being is at stake. Immediately after the diagnosis, the various treatment options are discussed. Most of the regular health insurance plans cover several costs associated with treating cancer. However, diagnosis of this disease not only brings emotional distress but also financial difficulties in meeting your basic necessities and loan repayments, if any.

Therefore, you may consider buying additional coverage through a cancer insurance policy. This plan offers extra benefits when diagnosed with cancer, ensuring you and your family do not have to worry about finances and can focus on regaining your health.

Understanding cancer insurance

Contrary to popular belief, this type of policy cannot replace your regular health insurance policy. It is complementary to the latter and pays for treatment expenses not covered by your health plan. Here is how it works.

  • Most of these policies pay a lump sum when you are diagnosed with cancer. The money may be used for treating the disease or paying other expenses.
  • Some insurers offer coverage for expenses related to the ailment that is beyond the primary health policy. However, the actual coverage may vary and it is recommended you ensure the exclusions are not the same as those in your health plan.

The benefits become available once the insurer receives all the relevant documents related to a positive diagnosis. There may be a pre-determined waiting period from the date of purchase for the benefits to be available.

Uses of cancer insurance

You may be wondering that a critical illness insurance policy may also provide the financial support needed to deal with cancer and its treatment. However, here are some uses of cancer-specific plans.

  • On diagnosis, your focus is on seeking the right treatment. You may need to travel to another city for the same and the insurance benefits may be used to pay for your travel and stay. Alternatively, the money may be used to meet your household expenses while you seek treatment. Therefore, with cancer insurance, you are able to focus on recovering rather than dealing with financial distress that may result due to the diagnosis.
  • If you own a business, ensuring the venture remains in operations when you are diagnosed with cancer is important. The lump-sum payout received at the time of diagnosis may help keep your business afloat. These benefits allow you to recover while taking care of expenses, such as staff salaries, rent, and utility bills.

Now that you know the importance of such plans, use a health insurance premium calculator to determine the coverage required. In addition, it is advisable to have emergency funds of three to six months of expenses to meet financial requirements while seeking treatment. 

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