What is cancer health insurance?

One of the biggest health problems that many people face in recent times is cancer. The diagnosis and resultant treatment of cancer can be financially draining. This is why insurers are offering a new type of health insurance to deal with the rising cases of cancer; cancer medical insurance.

Cancer insurance provides financial security to a policyholder and his family in case of a cancer diagnosis. However, an important thing to remember is that this policy gives compensation only if the cancer is diagnosed after the free look period. The free look period is a period within which the policyholder can cancel the insurance coverage without any problems. The insurer is mandated to return the health insurance policy premium in such a case.

However, these health insurance plans are not available for people who have already been diagnosed with cancer or who have already been treated for cancer.

What cancers are covered?

Most cancer health insurance plans cover all types of cancers including:

·      Lung cancer

·      Breast cancer

·      Ovarian cancer

·      Cervical cancer

·      Stomach cancer

·      Lymphoma

·      Prostate cancer

However, skin cancer and any cancer after coming in contact with any nuclear or chemical contamination is not covered.

Important things to remember:

In case cancer is detected at an early stage, then depending on the insurer, 20% - 30% of the sum assured is paid out.

Unlike a regular health insurance policy, a cancer health insurance does not have a sum insured against which claims can be made. Once diagnosed, the sum insured is paid out. The sum insured under these policies are higher to give adequate protection and coverage against the high costs of cancer treatment.

If the cancer is diagnosed at an early stage, most health insurance plans include a waiver of premium which means the premium for the future years will have to be paid, and yet the policy will continue to cover the policyholder.

If the policyholder does not make any claims in the previous year, then the sum assured on the health insurance plans increases by a fixed percentage every year.

Investing in this health insurance policy can give you a tax deduction under Section 80D which provides a deduction for health insurance policies.

This health insurance policy covers all stages of cancer as compared to a critical illness plan which covers only advanced stage cancer diagnosis.

This health insurance policy is recommended if you have a family history of cancer. Since this pays a lumpsum amount on diagnosis, the payout can automatically be used to pay cancer treatment bills. Most insurers offer coverage starting from Rs. 10 lakhs which is higher than regular comprehensive health insurance plans.

Before you buy a cancer health insurance, you need to read through all the terms and conditions thoroughly. This way, you can ensure that the policy covers you enough. This policy is beneficial if you are the breadwinner for the family and do not have many savings to bank on. Chemotherapy or surgery can get very expensive which is why having some basic coverage for critical illnesses and cancer is essential in these times.