Benefits of a Cancer Insurance Plan

TeamAckoSept 25, 2024

According to the World Health Organization, cancer is one of the leading causes of death worldwide. It occurs when normal cells turn abnormal or cancerous and start multiplying and spreading rapidly all over the body. Once you get diagnosed with it, the treatment can often be extremely expensive and emotionally exhausting. It can even push you into debt. This is where a Cancer Insurance Plan (CIP) can come into play and give you a helping hand.

Contents

• Benefits of opting for an exclusive Cancer Insurance Plan 
  • 1. Eases financial burden
  • 2. Coverage against most types of cancers
  • 3. Protection at any stage of cancer
  • 4. No-claim Bonus
  • 5. Premium waiver after cancer diagnosis
  • 6. Assured income after cancer diagnosis
  • 7. A lump sum payment
  • 8. Income tax benefits
• Frequently Asked Questions

Benefits of opting for an exclusive Cancer Insurance Plan 

Here are the eight benefits of opting for an exclusive Cancer Insurance Plan.

1. 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. 

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

Frequently Asked Questions

Here’s a list of common questions and answers related to a Cancer Insurance Plan.

Why should I opt for CIP?

Cancer is a deadly disease and an expensive one to treat. It can wipe out your hard-earned savings, and that may still not be enough to cover the cost of cancer treatments. So getting an exclusive CIP can be a wise choice, as it can give you peace of mind and protection for your family’s financial future. 

What are some of the exceptions under most CIPs?

Skin cancer, cancers that are caused either directly or indirectly by sexually transmitted diseases such as AIDS and cancers caused by pre-existing health issues are not included in coverage. Also, if the cancer is caused by nuclear, biological, or radiation contamination, the plan will not cover it. 

Are treatments such as radiation and chemotherapy covered under CIP?

Yes, both of these methods of treatment are covered under CIP. 

What are some of the more common types of cancer covered by cancer insurance?

Breast, stomach, ovary, prostate, lung, and hypopharynx (lower throat) cancer are covered by most cancer insurance providers. 

Who can benefit the most from CIP?

Cancer insurance in this day and age is recommended for most people, taking into consideration the changing lifestyle choices that increase the risk of this illness. But if you have a family history or are at a higher risk of developing cancer down the line, then you should definitely buy it. 

Can I opt for a CIP after I’m diagnosed with cancer?

It is next to impossible to buy a new CIP after you have been diagnosed with cancer.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.  

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