HOW CANCER INSURANCE ADDS TO YOUR FINANCIAL PORTFOLIO

CANCER INSURANCE COVERS HIGHER COSTS OF TREATMENT AND PROTECTS THE FAMILY FROM FOOTING THE BILL FROM ITS SAVINGS

According to statistics, around 22.5 lakh people are living with cancer in India, and over 11.57 lakh new cases are registered every year. In 2018, a total of 7.84 lakh cancer- linked deaths happened in India. Cancer incidence is expected to rise in India. It is a deadly disease which impacts people mentally, physically, and financially. However, with improved healthcare facilities, cancer cases are not hopeless. The disease is treatable but treatment costs are high compared to other diseases.

Depending on the type of cancer, staging, and treatment undertaken, the costs may vary from ` 1 lakh to ` 30 lakh and sometimes more. Cancer treatment can drain a family’s wealth. Therefore, financial planning and purchasing the right amount of insurance is necessary for everyone. This is where cancer insurance plans come in.

HOW DOES CANCER INSURANCE PLAN HELPS

A large majority of hospitalisations and medical procedures can be covered by a robust health insurance cover of ` 5 lakh to ` 10 lakh. However, cancer is nothing like any other disease, and its treatment is likely to cost much more.

For example, the cost of cancer surgery, followed by a mix of chemotherapy and radiation may easily set a family back by ` 10 lakh, not counting costs of testing, daily medicines, home nursing, etc. So if anyone in your family has a history of cancer, you must consider getting a cancer insurance policy to cover your financial risks.

DIFFERENT FROM HEALTH INSURANCE

A regular health insurance policy only covers expenses incurred on hospitalisation along with pre- and post- hospitalisation expenses within defined limits. On the other hand, a cancer policy can provide coverage against all expenses related to your cancer treatment, and also provide a lump sum to you that you may use to replace any income you may lose while you are seeking treatment.

Since the cancer insurance covers a small set of cancer- specific ailments, its premium is lower than the typical health insurance policy for the same sum assured. Another critical difference is that while a regular health policy covers you to the extent of your claim or hospitalization bill, a cancer cover gives you the sum assured immediately on detection of cancer. With this, as you arrange your cancer treatment, you will have no immediate financial worries.

CRITICAL ILLNESS COVER VS. CANCER INSURANCE POLICY

Critical illness policies come with the benefit of covering a broader variety of life- threatening diseases that may also be expensive to treat. However, it has certain limitations when it comes to the treatment of cancer specifically.

Most critical illness policies have a waiting period of around three months.

Another drawback is that they may not cover cancer at an advanced stage. However, a cancer insurance policy can cover the risk immediately upon diagnosis, regardless of the staging of cancer.

WAITING PERIODS

It is important to mention here that for new cancer covers, usually there is a six month waiting period before which the insurance company does not admit claims.

Insurance companies also have a rule for the survival period, i. e. for a valid claim the insured needs to survive a prescribed period from the date of diagnosis. Usually, the survival period is 5- 7 days in most cases.

EXCLUSIONS

You may rush to buy health insurance or cancer covers this quarter in order to save taxes under Section 80D. However, do note exclusions on cancer covers before you commit to any product.

Some the exclusions are all tumors of the prostate, all thyroid cancer, non- invasive papillary cancer, all tumors in the presence of HIV infection, any pre- existing cancer, cancer caused due to nuclear, and biological or chemical contamination.

KEEP IN MIND

While buying a cancer cover, you'll get a variety of products from various insurance companies. You should focus on a product that comes with features like cover for all stages of cancer, higher compensation for claim in critical stages, waiver of premium on diagnosis, multiple cancer cover, the least number of exclusions, and a survival period that is no more than 5- 7 days.

The initial waiting period should not be more than 6 months, and the premium should compare favourably with other similar cancer covers.

Lastly, always remember that a cancer cover should be taken as an additional product and not as a substitute for your base health insurance policy.