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5 Things to Know about Cancer Insurance

Cancer is a deadly disease that has been on the rise across the world. This sharp increase in instances of cancer has significantly been linked to changes in lifestyle, genetics, and environmental factors alone.

In India, studies have shown that new cases of people suffering from cancer have increased from INR 14 lakh in 2016 to INR 17.3 lakh in 2020. Further, according to a report prepared by the World Health Organization, India is ranked among the top three countries with the largest number of patients suffering from hematologic cancer.

According to these reports, it is very clear that we are all under a health crisis. And if we want to deal with this health crisis while properly taking care of investment and tax planning, then our only solution is relying on health insurance policies.

Life insurance policies are also available for cancer patients. Life insurance for cancer patients provides financial assistance to a patient who has been diagnosed with this disease. Cancer care life insurance comes with several benefits. Today, we’ll take a closer look at the benefits offered by breast cancer life insurance policies and why you should have life insurance when you have cancer.

Why Should People Buy Cancer Life Insurance?

Cancer is not just a difficult diagnosis to hear in terms of the toll it has on the body but this disease can also hit an individual pretty hard in terms of financial obligations. According to a rough estimate, the cost of medical diagnosis and treatment, which includes surgery, chemotherapy, radiation, and hospitalization, can be anywhere between INR 2.5 lakh to INR 20 lakh for a period of six months!

Because of this, it is not surprising that people diagnosed with cancer often wonder if there is life insurance for cancer patients. Thankfully, there are insurance providers that offer life insurance for terminal cancer patients.

It is also a good idea for people who have a history of cancer in their family to purchase the best life insurance for cancer patients. Also, there are eligibility criteria associated with the majority of life insurance for cancer patients in India. This means that if you are planning to buy a life insurance policy for cancer patients, then you must make sure that you qualify for the eligibility criteria.

Types of Cancer Covered Under Cancer Insurance Plans

A cancer diagnosis might be classified into four main stages, including:

  • Carcinoma in Situ (CIS)

This is the stage where the patient has been affected by cancer for the first time. During this stage, the cancer cells will not have fully penetrated the surrounding tissues.

  • Early Stage

During this stage, a malignant condition can invade and destroy the nearby tissues.

  • Major Stage

At this stage, there will be a malignant tumor that is growing uncontrollably. The malignant cells will destroy normal tissues as well.

  • Critical Stage

When cancer is identified as being in the major stage and the oncologist has classified it as Stage IV, then it is known as the critical stage.

Features and Benefits of Cancer Insurance Plans

There are several benefits provided under term life insurance for cancer patients. In this section, we’ll take a closer look at what those benefits are and those benefits are mentioned in the list given below.

  • Most cancer plans do not provide a death benefit to the policyholder. This is different from other life insurance policies
  • Almost all major cancer health insurance policies have a waiting period of 180 days from the start of the policy coverage. Further, the cancer patient is also required to survive for the next seven days after the cancer diagnosis for the claim to be valid
  • The majority of cancer insurance plans provide coverage on the basis of the stage at which the disease was diagnosed. In most cases, the payouts are in the form of lump-sum amounts
  • One can also get a waiver of premium coverage. In some policies, an individual can even get a regular income benefit for a fixed period of time. This is usually in the form of a percentage of the sum insured
  • No Claim Bonus (NCB) is also provided in most cancer insurance policies
  • One of the biggest benefits of purchasing a cancer insurance plan is that the insurance coverage will continue even after the first diagnosis of the disease
  • Cancer insurance plans are also eligible for tax benefits under Section 80D of the Income Tax Act

 

The Eligibility and Documents Required

As mentioned before, there are certain eligibility criteria that one has to fulfill before he or she can purchase a cancer insurance policy. Let’s take a closer look at the eligibility criteria in this section.

  • Most insurance companies offer cancer insurance plans to individuals between the age group of 18 years to 65 years. Some insurance providers also give cancer treatment coverage to minors if the parents are also covered under the policy
  • A policyholder has the option to choose the policy term of up to 20 years. Under this, there is often a condition that the maximum maturity age should not exceed a total of 75 years
  • Coverage is provided for cancer diagnosis at various stages of the disease
  • Before activating the policy, one must fulfill the waiting period, which is usually about 180 days
  • Individuals who survive for seven days after the diagnosis of the disease are eligible for coverage
  • Under most cancer health insurance policies, the minimum sum insured is INR 5 lakh and the maximum sum insured is INR 50 lakh
  • Some insurers do not provide coverage for skin cancer

 

Beyond this, the documents that one needs to submit to purchase a cancer insurance policy are:

  • ID proof
  • Proof of age
  • Medical test reports
  • Income proof
  • Address proof
  • Bank statements
  • Passport-size photographs
  • Any other document required by the insurance provider

 

These are all the five major things that you need to know about cancer insurance.

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