Cancer insurance is a type of health insurance plan that provides a financial backup in case you are diagnosed with the ailment. In India the disease has claimed over 7 lakh lives last year makes it imperative for individuals to avail a cancer insurance policy that provides the required funds for its treatment.
However, before you opt for this plan, knowing certain things would help you make an informed choice.
- Cancer insurance is a fixed benefit plan
Unlike a regular health insurance plan that covers only hospitalisation expenses, cancer insurance is a fixed benefit plan. In other words, this policy provides a lump sum upon diagnosis of the disease, irrespective of the costs incurred.
For instance, if the sum insured in the policy is Rs. 25 lakh, upon diagnosis the entire amount is paid in one go. The lump sum provided helps you take care of the high costs of treatment. Treatment of cancer is an expensive affair. The expenses can often run into lakhs of rupees and can potentially wipe out an individual’s entire savings. However, a cancer insurance plan prevents out-of-pocket expenses while dealing with the ailment.
- Most plans cover all types of cancer, barring a few
The cancer insurance policies available in the market provide coverage against most types of cancer, including lung, breast, cervical, throat, oral, etc. However, it’s crucial to note that coverage is not provided against skin cancer and the one occurred due to HIV or AIDS.
Thus, it’s important for you to read the terms and conditions of the policy thoroughly and see the coverage provided against various types of cancer. Opt for a plan that covers most types as it keeps you guarded for a wide range of related illnesses.
- Pay-outs can be staggered
Though cancer insurance policies offer a lump sum pay-out, some policies may offer a staggered pay-out option. Here, a certain percentage of the sum insured is paid as a lump sum, while the rest is paid in a phased manner.
For instance, if the sum insured is Rs. 50 lakh, Rs. 25 lakh may be paid as lump sum, while the rest of the amount can be paid in monthly instalments over a period of time. Cancer may impair your ability to earn. The pay-outs received on a monthly basis can help your family take care of the day-to-day expenses along with meeting other commitments such as utility bills, credit card dues, insurance premiums, etc.
- It covers post-hospitalisation costs
A cancer insurance policy, apart from reimbursing expenses for in-person hospitalisation also cover post-hospitalisation costs. Note that cancer care is a long-term affair which includes multiple visits to doctor, medication, second opinion, etc. These can pinch your pocket hard.
However, a dedicated cancer insurance plan covers costs for these expenses too. When you buy a cancer insurance plan, make sure to find out the coverage offered for these allied costs, which can strain your finances in a big way.
With cancer cases on the rise, it’s important to include this policy in your portfolio. While buying a policy, compare quotes from different insurers and check out the claim settlement ratio. The higher the ratio, the better it is for you as the insured.
Today, there are several aggregator portals wherein you can compare different policies based on the sum insured, network of hospitals covered, treatment procedures included and exclusions on offer. You can also talk to experts to understand the nitty-gritty of a cancer insurance plan. You may also check out the health insurance policies offered by Bajaj Finserv. These policies offer a comprehensive coverage and offers you benefits like cashless claim amongst others.