Why Cancer Insurance ?

 

Cancer treatment cost still remains highly expensive irrespective of the advances in the treatment modalities and methods. When it comes to cancer treatment, unlike other critical diseases, treatment is not confined to hospital alone. Depending on the stage and degree of severity, treatment method varies which includes hospitalization, home care, palliative care etc. Though one have a regular health insurance, all such expenses as mentioned above are not covered by it. Here comes the benefit of holding a cancer specific insurance in meeting the treatment costs.

Cancer Policies are issued by General Insurance (GI) Companies like New India Insurance, Star Health, HDFC Ergo and Life Insurance (LI) Companies like Max Life, LIC, HDFC Standard, ICICI Prudential. The main difference is that Cancer Insurance Policies are individual policies unlike health insurance policy, which you can take on family floater basis. The other main difference between the policies issued by GI companies and LI companies is based on the type of settlement in case of claims.

Most of the people are currently holding regular health insurance policies. When a claim arises, the claims are settled based on the cost of the treatment which is supported by hospital bills and doctors report. Cancer Insurance policies issued by GI companies settle the claims in the same manner.

Where as the cancer insurance policies issued by LI companies settle the claims in a different manner. Once a person is diagnosed with cancer, based on the stage of the disease and supported by doctor’s report along with diagnostic report, the companies settle the claim by paying the sum assured amount directly to the insured person. It is not subjected to bills from hospital nor is it reimbursement of the cost incurred while in the hospital. Hence these policies are more comprehensive and covers all stages of cancer care. By this way, the patient can go for treatment in a hospital as per his convenience and facilities and use the money received to meet any cost or expenses incurred during the treatment.

When it comes to premium, cancer insurance policies from LI companies are more economical compared with cancer insurance policies by GI companies. And once an insured is diagnosed with stage I Cancer, some companies waive off all future premiums where as some companies waive off for a specified number of years.  Max Life policy waives off all future premiums. Even if premium payment is stopped, the cancer policy will continue for the rest of policy period. But when it comes to cancer insurance or critical insurance policies of GI companies, to continue the policy, the policy holders have to renew the policy by paying the premium every year.

Most of the cancer policies offer 20% of the sum assured on diagnosis of Stage I cancer. Also, cancer policy offers Income benefit to the policy holders/nominees in case of death due to cancer on top of the amount specified under sum assured. The policy from Max life offers income benefit at the rate of 10% of the Sum Assured for a period of 5 years.

All the cancer insurance policies ask for a waiting period of 180 days from the date of purchase of the policy. If a person is diagnosed with cancer during this waiting period, the premium amount paid will be refunded to the policy holder. Similarly, there is a survival period of 7 days from the date of diagnosis to be eligible for the claims.

Most of the companies, for each claimless year, no claim bonus (NCB) up to 10% of the basic sum assured is added to the coverage. However, LIC offers an option of Fixed Sum Assured, by which NCB will not be added to the sum assured.  Though IRDA permit revision of premium of cancer Insurance once in 3 years, generally the companies are keeping the premium fixed for 5 years. The premium paid for cancer insurance policy is eligible for tax benefit under Sec 80 D.

Companies do not issue policies to those who are already diagnosed with cancer or taken treatment for cancer. Similarly, policy is not issued if you have a family history of cancer and smoking habits. There is minimum age of entry as well as maximum age of entry specified by companies. Most of the companies offer policy till 75 years or a policy term of 50 years whichever is smaller.

So, to sum up, a combination of general health insurance plus a cancer insurance policy can support the family in meeting the financial emergency associated with  cancer treatment.

For more details on Cancer Insurance, contact George Jacob on 8547442952