Benefits of a Cancer Insurance Plan

Eases Financial Burden

Cancer is an expensive disease to deal with, especially for the low and middle classes. The multiple doctor visits, surgeries, and treatments, including radiation and chemotherapy, can eat away at your life savings, and this still might not be enough to keep you from falling into the vicious debt trap. Usually, people are just one medical emergency away from falling into poverty, and cancer can be that medical emergency given the times we live in. So getting CIP can save you from financial destruction and offer you a great solution that allows you to focus solely on treatment and recovery. 

Coverage Against Most Types of Cancers

Most insurance companies provide coverage for most types of cancer, which is very beneficial. Cancer cells can develop in any part of the body and spread to other organs rapidly, which makes coverage against most types of cancer a great feature to have in your cancer insurance plan. Here are some examples of cancers. 

• Prostate
• Breast 
• Lung 
• Stomach 
• Ovarian 
• Hypopharynx 

Though most insurance companies will cover the most common types of cancer, it is better to read up on all the finer points in the insurance documents before you go ahead and purchase cancer insurance plan, just to be on the safe side. Make a list of the insurance companies that offer such coverage and choose the one that gives you coverage against most types of cancer.

Protection at any Stage of Cancer

Cancer Insurance Plan from the most well-known insurance providers will cover the cost of treatment regardless of the stage at which the cancer is discovered. In a lot of cases, the illness can be discovered in its later stages, which may lead to an increased cost of treatment. So, a comprehensive cancer insurance coverage plan will have you covered regardless of the stage of cancer.

No-claim Bonus

A No-claim Bonus, as the name implies, comes into play when the insured does not make a claim within a specified policy period (usually annual). As a reward, the original sum insured will be increased if no claims are made. In most cases, the increase will be about 10% per year when claims aren't made. Some insurance companies can lower the premium paid for your policy instead of increasing your sum insured as a part of their no-claim benefits.

Premium Waiver after Cancer Diagnosis

Certain insurance policy providers might waive the premium paid for cancer insurance if the insured has been diagnosed with the illness. This is a great benefit as it lessens the financial burden of paying a premium. This amount can then be channelled towards other needs. This essentially means that after your diagnosis, you can receive cancer insurance coverage without spending a penny for the time period stipulated by the insurance company.

Assured Income After Cancer Diagnosis

Not everyone diagnosed with cancer can continue with their careers uninterrupted, and there can be a loss of income due to this very reason. The fact is, you might need a lot of leaves and might not be in the best of health to return to your job unless you have a very understanding and patient employer waiting for your return. Also, letting go of a job that pays for your family’s upkeep is one of the many sad realities when cancer comes along. 

There are insurance companies that take notice of this issue and will offer to pay you an income as a part of the CIP you have taken for a predetermined period of time. The income can be paid out monthly or over a previously agreed-upon time frame as per the policy. In the event of death, this income can still be paid out over a period of time to the family of the deceased, if the policy allows for it.

A lump Sum Payment

Acting quickly once the cancer diagnosis is received is of the utmost importance. Hence, waiting for the insurance to kick in bits and pieces can cause additional stress. Most cancer insurance companies have a hassle-free method to deal with this issue. They issue a lump sum once the diagnosis is received so that the patient’s treatment can be started as soon as possible.

Income Tax Benefits

Conventional medical insurance isn’t the only insurance that can give you income tax benefits under Section 80D of the Income Tax Act, 1961. CIP can also give you tax benefits, so don’t forget to include it in your yearly tax calculations.