When cancer strikes someone in the family or social circle then we realize that the risks are real. The family and the patient have to be emotionally strong, and they need a good amount of money to deal with it. It’s a risk to a peaceful planned financial life, hence we have a risk transfer mechanism in form of Cancer Insurance Policy. These are available through various insurance companies.
Let’s see how these cancer insurance policy works for an individual.
Cancer is still a dreaded word as the mortality rates are still high, diagnosis is hard, reoccurrence is common & most of all treatment is very costly.
Cancer Trends
Two things that do not shock now- first, that cancer can strike a young person with an active lifestyle.
Cancer can strike anywhere like gallbladder or eyes. The most common like breast & blood (leukemia) are still common but there are 200 more types.
1 million new cases are reported every year in our country and 6.8 lakh die during one year. This is a very high death rate despite a lot of growth in the medical field.
What is the risk involved?
Apart from emotional endurance for the family, the risk is the financial unpreparedness to face this situation.
Imagine a family like yours or mine. We all live in a financial system, where one or the two members earn, we pay EMIs, we pay to school, we save for future etc.
But in case cancer strikes, this system is disturbed. You need time and money for treatment. The job gets sacrificed and so is the flow of money.
You can stop or postpone savings long-term goals, but what about EMIs, present months expenses, and treatment cost?
Can Mediclaim help?
Yes, most mediclaims cover cancer as a disease. But to cover the cost of cancer treatment you need a cover of 25 lakhs or may be higher. The cost for mediclaim for this amount can be huge and also increase as the age progresses.
Also, many cancer treatments do not require hospitalization. You just need chemo or radiation sessions. Thus, a normal health insurance policy may not serve the purpose.
Can Critical Illness Policy help?
Cancer is covered as a specified disease in most of the Critical illness policies. But the cost is a differentiator. CI cover is costly when you compare it with cancer-specific policies. Also in CI policies, the premium changes very year bit in cancer policies the premium is static for 5 years in general. Also many CI policies pay in advance stages of cancer and not when cancer has just surfaced.
So here a customized Cancer Insurance Policy becomes vital.
Cancer Insurance Policy
These plans are customized for cancer and related with a purpose of providing timely financial assistance to the patient and family.
You can buy any of these plans before contracting the disease. Even if it is in the initial stage, no insurer will give you a cover. Many insurers provide cover after 48 months lapse of successful treatment.
Most insures issue these policies without medical tests, depending on the customer’s age and the facts declared in the proposal form.
As in any other insurance, it is important to declare the details correctly at the time of buying the policy. Especially do not ignore or hide people with family history of cancer. In most cases, you will get a policy but in a rare case, if you are not eligible for a plan, there is no point in paying for a policy which will not pay the claim.
When can a Cancer Insurance Policy be declined?
If you have been diagnosed or treated for any type of cancer in last 48 months, it is almost impossible to get a policy.
A policy can also be declined or issued with few tests and documentation in case there is a cancer history among the blood relatives, that is, parents or siblings.
In addition to this, there are certain exclusions such as a pre-existing condition of cancer, cancer contributed by STD (Sexually transmitted diseases, AIDS or HIV) or intoxication by alcohol or narcotics or drugs not prescribed by a registered medical practitioner.
How does Cancer Insurance Policy work?
Most Cancer insurance policies pay the amount in stages as disease strikes in stages.
For example, 25 % of the sum assured is immediately credited to the policyholders account once the disease is diagnosed.
Someone who has taken 25%, can take remaining 75% in case advance treatment is required.
Some companies pay 150% minus the initial stage payout if the treatment moves to advance stages.
If the cancer is found in more than one organ, then 20 % of the sum assured is given for the treatment of each organ.
Few policies also offer 1% per month of sum assured reimbursement for 5 years as income replacement. It can be used to substantiate the loss of income due to cancer.
Also, some plans pay out entire 100 % of the sum assured during the advanced stages, and even an additional 10% or more over a certain period of income.
Cancer Care Policy Rates
Cancer insurance covers can be bought for as little as 7000-11000 a year for 35 years old male or female. Premium depends on the sum assured, age and gender.
Below is the comparison of the premium of some private insurers and their features.
Point to note is the Mediclaim & Critical Illness policies are issued by General Insurance companies but Cancer policies are issued by Life Insurance Companies.
LIC policy for Cancer Patients
Life Insurance Corporation also has a Cancer Policy called Table no 905. The premiums are on the high side compared to private insurers.
ICICI Cancer Care Plus
Same way ICICI Prudential Life Insurance offers a combined policy customized for Cancer & heart-related diseases.
Conclusion
The article aim is to educate that with normal mediclaim and critical illness policies you have an option to cover Cancer treatment. This will ensure your long-term financial plan to work without any disturbances.
You have one life and you certainly cannot take chances with it.
Make sure that you read and understand all features, exclusions & wordings before signing a policy.
Hope you liked this coverage on understanding the Cancer Insurance Policy for yourself & family. Share your comments below.
