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 (condition specified in the policy wording).
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.