Cancer can not only be a terminal disease, it can also leave you financially devastated. The diagnosis and treatments in various stages of the disease can cost tens of lakhs of rupees and the process could itself drain you of all resources. This means that a regular health insurance would only help you to a certain extent beyond which you will be left to fend for yourself.
So, what should one look at while purchasing a cancer-specific policy? Here are the 5 most important factors:
1. High sum insured
This is the most important factor to take into consideration. As your expenses will grow higher, if your case worsens, it is necessary that your sum insured can match the cost. It is advisable to look for policies where you get a cover of Rs. 10-50 lakh, based on the premium you are willing to pay. Certain policies also offer lump sum payments on the diagnosis of the disease that could help in managing other treatment related costs as well. There are plans that provide indexation benefits, i.e. your sum insured increases with time, and you can look into those policies as well.
2. All stages get cover
There are 3 stages of cancer: pre-cancer, early stage, and critical stage. Most insurers would provide 20-25% of sum insured in the early stages and cover 100% in the critical stages. It is advisable to buy a policy that provides ample stage-wise coverage as it will help you manage your expenses better.
3. Waiting periods
Cancer-specific plans can have 2 kinds of waiting periods. The first one, or the initial waiting period, is often 90-180 days from the date of purchase and one cannot make any claims during this period. The second kind is called the survival period (usually 7 days) where the insurer has to survive the period from the date of diagnosis to be eligible for claims. Always pay attention to the waiting periods involved in the plan.
4. Waiver of premium and income benefit
Being detected with cancer can reduce your working capacity and your income may fall as well. Certain policies do take into account and provide relief to the policy holder in this regard. There are two ways in which it is done.
- Waiver of Premium (WOP) – Insurers providing this benefit waive off future premiums for 3-5 years depending on the policy and the stage of cancer you may be in.
- Income Benefit – Insurers providing this benefit offer a regular monthly income (usually 1-2% of the sum insured) on diagnosis or at critical stage, depending on the policy. These two benefits may cost a bit extra in premiums but they are extremely helpful in dire situations.
5. Wide Policy Term
Policy term is the duration in which the policy will cover you. As cancer treatments can get elongated, it is best to find a policy with wider policy terms. Most of the cancer-specific plans have a maturity age of 75 years which means that you would be covered until the age of 75 but this may vary with different insurers and you’ll need to be mindful of the duration.
Photo by National Cancer Institute on Unsplash.
OneAssure is a distribution platform that helps you make right decisions on matters where health and finances converge. Visit oneassure.in to know more about your health insurance choices.