Why Is An Independent Cancer Health Insurance Plan A Must In 2024?

Do you know that 74% of fatalities globally are attributable to cancer and other non-communicable diseases (NCDs), such as diabetes, heart disease, stroke, and chronic lung disease? Every year, almost 10 million people pass away from cancer. Considering the fact it is a time-consuming illness, healing takes a long time and money. It naturally has an impact on people’s financial and mental well-being.

While we are seeing a positive shift towards life insurance plans, cancer insurance penetration is still at its low in India. Earlier, a cancer-critical illness rider used to be considered a good enough addition to your current health insurance policy, but seeing the trend from the past ten years, the number of cancer cases has rapidly increased, and we all know the cost of cancer is not a one-time hospitalization.

The expense of hospitalization under cancer care cannot be forecast due to its recurring nature; in fact, even Rs 20 lakh may not be sufficient. This is the reason why insurance companies are developing premium health insurance plans specifically for cancer patients, with a cap of about Rs 1 crore or even Rs 3 crore. From that angle, individuals ought to consider pursuing an independent health insurance plan for cancer in the future.

Who should buy Independent Cancer Insurance?

Sole breadwinner:

For everyone, having cancer insurance is essential. However, if you are your family’s sole provider of income, this is even more important. Life insurance plans will provide the payout after your demise, whereas cancer insurance ensures your savings don’t get depleted thanks to the financial security and income benefits provided under the cancer insurance plans.

Individuals having a family background of cancer:

Cancer is a chronic illness that runs in families. This implies that there’s a good possibility you could get cancer if it runs in your family. You have to choose cancer insurance coverage to lower the financial risk involved with it. The rising number of cancer diagnoses and the length of time required for treatment have led to a massive rise in the expense of cancer care in today’s world. But, you should be informed that pre-existing cancer conditions are not covered by the cancer insurance plan before you buy a policy.

You Lack Sufficient Financial Backup:

Life insurance plans have a lot of benefits, but an independent cancer insurance plan has benefits that can help you sail over difficult times. It is well known that a fatal illness like cancer can cause one to deplete their savings. In addition to paying for your treatment, having backup cancer insurance coverage gives you peace of mind about your finances and ensures that you have enough saved to pay for your medical bills. If you are concerned that you may experience an unexpected financial crisis, you should select a plan that provides a lump-sum payout option.

Your existing health insurance policy doesn’t include cancer:

Cancer insurance is available as an add-on and critical rider. For more comprehensive coverage, it is preferable to get separate cancer insurance.

What should you consider before buying Cancer Insurance?

Make sure the sum assured is of sufficient amount:

An estimated 15% of inflation in medicine occurs annually. It is important to purchase a cancer insurance policy with a substantial sum assured.

Check the payment schedule:

Comprehensive coverage for all stages of cancer is a must for an excellent cancer insurance plan. Most of the plans offer 25% of the total amount guaranteed in the early stage and the rest of the money for important stages as specified in the policy.

Check to see other additional policy benefits:

To differentiate the plans from the competition, some health and life insurance plans offer extra advantages. Regular income for a predetermined amount of time and premium benefit waivers are a couple of these advantages. These extras are important since they offer more comfort during that time. These benefits are included in the majority of cancer insurance plans, but it is still wise to make sure the plan you are purchasing for your family or yourself includes them.

Verify the waiting and survival period:

It is advised that you review the policy specifics since they provide information on the waiting period or the amount of time you will need to wait

before receiving benefits from the policy. It is advisable to verify the survival term, which is the duration following the diagnosis during which the policyholder must remain alive to receive benefits from the plan.

Understand the coverage offered:

Carcinoma In Situ (CIS) – Pre-cancer stage, Early stage, Major stage, or Critical stage, depending on the severity – is the term used to categorize the stages of a cancer diagnosis. Selecting a plan that provides stage-based payment is crucial to managing treatment and related costs at different points in time. It is important to examine the stage-based claim payout for various cancer stages as well as the plan’s overall total benefit.

When cancer is discovered early on, most cancer insurance plans pay up a portion of the total insured (usually between 20 and 25 percent). 100% of the total insured is given at the major/critical stage of cancer (less any previously paid claim amount, if any).

Look for Premium waiver and income benefits:

Following a cancer diagnosis, a patient’s earning potential, productivity, and health all decline. If the patient is the only provider for the family, there may be a loss of regular income and an inability to pay for other costs in addition to treatment that are necessary for the home to function smoothly. Cancer insurance plans include built-in or add-on features, including regular monthly income and premium waivers, to act as a safety net during difficult times.

Another significant benefit provided by the majority of cancer insurance policies is that the future premium is waived for three to five years or the remaining policy year (after the cancer is diagnosed). Now, each plan offers a premium waiver at a different time and for a different length of time.

So, we are saying,

Getting diagnosed with cancer is not only worrisome for the said individual but for their family also. Comprehensive cancer insurance will have you covered regardless of the stage of cancer.