Cancer Insurance, is it really important?
What exactly is cancer insurance? Is it important to have cancer insurance separately?
Cancer insurance is a disease-specific insurance plan. They pay you a lump sum only in case there is a diagnosis of Cancer (conditions would be specified in the policy wordings).
A disease like cancer can keep you away from work - the lump sum you receive can be used as a replacement for your income for some time. Moreover, a health policy pays only when you are admitted to a hospital, however, in case of cancer treatments, in most cases treatment will happen at home and the patient will visit the doctor on an OPD basis or for some daycare procedures like Chemotherapy.
Treatment of Cancer takes a toll on finances and it drains out all the savings. I have seen families selling jewelry, house, and other assets for the treatment of Cancer. The lump-sum money that one receives provides a cushion for the family to cater to expenses.
Term Plan will pay you on death, health insurance will pay you when hospitalized, and cancer insurance will pay on the diagnosis of Cancer.
Hope this clarifies your doubt.
To put things in right perspective, there are 2 scenarios as below
- Getting insurance cover for Cancer ( already diagnosed ) - Indemnity insurance like Star Health Cancer Care policy
- Seeking insurance to get covered for Cancer ( not diagnosed ) - Mostly benefit plans like critical illness policies available in the market which will pay for an lump sum ( up to Sum insurance opted).
While we have fair number of Benefit insurance plans (Cancer specific / Critical illness ) available in the market, Indemnity insurance options are very limited and restrictive.
Indemnity insurance ( Cancer specific) are generally taken, with not many options left, if the person does not have any active comprehensive policy.
Benefit plans ( critical illness plans) are to be taken as an supplement to your existing comprehensive health insurance. These plans are not an substitute to comprehensive health plans. Benefit plans are meant to support the livelihood in case of severe illness and any loss of income and incidental medical expenses.
Hope this clarifies.