Benefits of Cancer Health Insurance

Posted on: Sep 21, 2023 | | Written by:

Benefits of Cancer Health Insurance

Published on September 20, 2023. EST READ TIME: 3 minutes

Getting diagnosed with cancer can be distressing for an individual and his/her family. The condition happens when the harmful cells in the body multiply rapidly and spread to other parts or organs. According to the National Institute of Health, one out of nine people in India are likely to develop cancer in their lifetime. Moreover, the incidence of cancer cases is likely to increase by 12.8% by 2025 as compared to the cases in 2020.

These figures can be disturbing, especially for those with a family history of cancer. Moreover, the condition can affect anyone, and the treatment can burn a hole in the pocket. Hence, the best you can do is take good care of yourself and your family and keep health insurance handy. The policy is an important insurance product that assures financial protection to cancer patients and prevents financial setbacks. Read on to understand the benefits of cancer insurance in detail.

Who should buy cancer insurance?

While cancer insurance is important for all, it is a must-have for the following individuals —

1. Individuals with a family history of cancer

Being a genetic disease, cancer can happen to anyone who inherits a genetic mutation. Hence, people with a family history of cancer are at a greater risk of suffering from the condition.

If a close relative was diagnosed with cancer, you must consider covering yourself and your loved ones under this insurance policy. This can ensure peace of mind and ease your financial risk.

2. Sole earning member of the family

The treatment of cancer can cause both physical and mental stress to the patient and his/her family. And if the sole breadwinner is diagnosed with the condition, the entire family may have to go through financial strain as well.

So, if you are the family’s sole earning member, it is important for you to cover yourself under cancer insurance. This healthcare plan can take care of your medical bills and prevent the depletion of your savings.

3. People with insufficient savings

The cost of treating cancer can run to several lakh rupees. Hence, if you have limited savings, buying a cancer insurance policy can prevent financial woes. If you get diagnosed with the condition, the insurer will cover your treatment costs and help keep your savings intact.

4. People with health insurance without cancer coverage

Cancer is a life-threatening condition, and its treatment is covered under a critical illness insurance policy. If you have individual health insurance or a family floater, it is likely that your medical insurance policy will not cover the condition. Although many insurance companies cover cancer treatment under add-on covers, the coverage can be limited. Hence, taking a separate cancer health insurance policy is the best option.

Benefits of cancer insurance policy

The following are the benefits of a cancer insurance policy:

1. Wide coverage

A cancer insurance policy covers policyholders against different types of cancer, such as lung cancer, stomach cancer, ovarian cancer, breast cancer and prostate cancer. The policy covers medical expenses of all stages of cancer, including the cost of diagnostic tests, treatment, therapies and recovery sessions. Since these can add up to a huge amount, having a cancer insurance policy can help cover the bills.

2. Lump sum payout

If you get diagnosed with cancer, your insurance provider will offer you a lump sum amount against your cancer insurance policy. You can use this money to cover your medical bills and other day-to-day expenses. The payout will depend on the stage of cancer and other terms and conditions mentioned in the policy documents.

3. Benefit on policy premiums

If you are diagnosed with early-stage cancer, the insurer may waive off your policy premiums for the next 3 to 5 years. Make sure you go through the policy documents to confirm the same. You can also get in touch with the insurance provider for further clarification.

4. No claim benefit

If you don’t file any claim during the policy period, the insurer may increase the sum assured of your cancer health insurance by a pre-decided percentage. In most cases, insurance companies increase the sum assured by 10% for every claim-free year.

5. Quality treatment

With a cancer insurance policy handy, you can opt for quality treatment in any hospital of your choice. The concept of network and non-network hospitals is not applicable here as the insurer will give you a lump sum amount against your cancer insurance. You can use the same for your treatment in India or abroad.

6. Income benefit

Many insurance companies also offer income benefit with cancer health insurance. If the breadwinner of the family gets diagnosed with cancer, the insurer may offer a pre-decided sum of money at different intervals to help the family cope with the loss of income.

7. Tax benefit

Under Section 80D of the Income Tax Act, 1961, you can save up to INR 25,000 on the cancer insurance policy you take for yourself, your spouse and your kids. If you cover your parents under cancer insurance, you can claim an additional deduction of up to INR 25,000 (if parents are below 60 years of age) or INR 50,000 (for senior citizens).

Conclusion

Keeping the benefits of cancer insurance in mind, it is wise to buy this insurance product to safeguard your health and finances. However, when you are buying this healthcare plan, make sure you do some research and compare different policies to find one that matches your requirements and pocket. A good healthcare plan can help you opt for the best treatment without worrying about exorbitant bills.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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