How Does a Cancer Insurance Plan Work? Read Benefits and Coverage

Cancer is widely-spreading throughout the world at an accelerating speed. There are over 100 types of cancers where the leading type of cancer among women is breast cancer and among men is lung cancer. Cancer stands tall as one of the deadliest diseases worldwide. Further, anyone can fall victim to this dreadful disease. While the likelihood of getting cancer has increased considerably, the cost of its treatment has also gone up in recent years.

This is the reason why a comprehensive health cover against cancer has become the need of an hour. Although most mediclaim policies available in the market today cover all major critical illnesses, including cancer, they are subject to certain limitations. They provide health cover to take care of a wide range of medical problems. However, the health cover provided by such policies comes with sub-limits in different situations. The critical illness insurance policy addresses this problem. The primary purpose of critical illness insurance cover is to help pay for costly treatments required for specific diseases.

Following are some of the benefits of buying a cancer insurance plan designed to provide financial protection against cancer treatment:

Financial Security: The increasing cost of medical treatments and hospitalisation, makes a cancer insurance a much-recommended investment. With a separate cancer insurance policy, you can be assured of being financially safeguarded against the huge cost of medical treatments like chemotherapy, radiotherapy, and surgery, if the need arises.

Extensive Coverage: Cancer insurance plans cover a wide range and stages of cancers. These policies are available at an affordable premium. However, one should check the coverage with insurance companies offering cancer insurance before buying one. Lump-sum Payment: Most of the cancer insurance plans offer a lump sum payout in case of diagnosis of the disease. This payout usually ranges between 20% to 25% or more of the sum insured depending upon the stage of cancer diagnosed and varies among different insurers. The remaining sum assured is paid if the insured is diagnosed with a major stage of cancer.

Waiver of Premium Benefit: This is offered as an add-on or in-built benefit by most of the insurers at a nominal additional premium above the basic premium of cancer insurance plan. This rider waives off the future premium without revoking policy benefits if the insured is diagnosed with an early stage of cancer.

Cancer Insurance Plans in India

• ICICI Pru Heart/Cancer Protect
• HDFC Life Cancer Care Plan
• DHFL Cancer & Heart Shield
• Aegon Life iCancer Insurance Plan
• Max Bupa Criticare Insurance Plan
• Max Life Cancer Insurance Plan
• LIC Cancer Cover
• Bharti AXA Health Insurance & Coverage for Cancer
• Aditya Birla Sun Life Cancer Shield Plan
• PNB Metlife Mera Heart And Cancer Care Plan
• Ican Cancer Insurance

• Cancer insurance policies offer comprehensive cover, especially against cancer.

• Most insurers offer waiver of premium benefit for a specific duration like for 3 to 5 years on the diagnosis of an early stage of cancer or the entire policy term. Some insurance plans even offer a monthly income benefit to cover the daily costs of running a household. This is usually 1% of the sum insured.

• Many cancer insurance policies offer an increase in sum insured on a yearly basis as an option.

• One of the significant benefits of cancer insurance is that the insurance cover continues even after the diagnosis of an early stage of cancer.

• Policyholders can avail tax benefits under Section 80D of the Income Tax Act, 1961.

Coverage of Cancer Insurance Plan

• Cancer insurance is a specific critical illness policy designed to provide financial protection against cancer treatment. It provides cover in case you are ever diagnosed with cancer. Generally, a cancer insurance policy offers a lump sum payment which can help cover several costs associated with cancer diagnosis and treatment, including hospitalisation, chemotherapy, radiation, and surgery, among others.

• The comprehensive cancer insurance policy covers most types of cancer, both early and advanced stages, that affect men and women. These policies provide the policyholder financial and mental security in the case of a cancer diagnosis.

• Some common types of cancer covered by such insurance policies include breast cancer, stomach cancer, ovary cancer, prostate cancer, and hypo larynx cancer. Usually, these plans do not cover skin cancer.

• For instance, if the insured is diagnosed with cancer of defined severity, a percentage of the sum insured is paid in a lump sum.

• Usually, the payment of cancer benefit is divided into different stages of severity. The payout depends on the stage/severity of cancer less claims previously made under the plan. Some cancer insurance plans also offer free regular cancer check-ups during the entire policy term.

• Some cancer insurance policies also give premium waiver benefit. As per this benefit, once a claim under the early-stage cancer benefit is paid, all future premiums are waived for a defined duration or the rest of the policy term.

• So far eligibility to avail cancer plans is concerned, for most cancer insurance plans, the minimum entry age is 18 years, whereas the maximum age to enter the policy is 65 years. The minimum sum assured allowed is Rs. 1 lakh whereas the maximum amount goes up to Rs. 50 lakhs.

• Another advantage of cancer insurance plan is that they are fairly priced as compared to other types of health insurance plans. Also, the premium paid towards these plans is eligible for tax benefits under Section 80D of the Income Tax Act, 1961.

• A wise man once said, ‘precaution is better than cure’. This saying very well applies to cancer and its dreads. The most viable cure to this deadly disease is curing it before it happens. Being proactive, adopting a healthy lifestyle and getting early detection saves the patient from incurring huge costs on its treatment.

Recommended Link: 5 Things You Must Know About Cancer Insurance