Five things you should know before buying a Cancer Health Insurance Plan

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Cancer is a life threatening, unfortunate disease that can hit anybody without even a knock on the door. It not only impacts the physical health of the patient but also has an impact on the financial health of the entire family.

Image Source – Forbes

The total number of cancer cases in the country has shown a consistent rise and it is expected to reach 17,30,000 lakh by 2020. The most common type of cancer is breast cancer for women and mouth cancer for men.

A health insurance cover will help you fight cancer financially and it will support you throughout the strenuous and testing journey. There are numerous health insurance plans that are offered by companies for cancer. They offer a lump sum payout if the insured is diagnosed with cancer. The cost of treating cancer can be as high as Rs. 20,00,000. Moreover, cancer also leads to a loss of the regular income for salaried individuals.

Things you need to know before buying a plan

Do not buy the first cancer plan that comes your way. It is important to understand various aspects before making a decision.

  1. Sum Insured

You need to consider the cost of cancer treatment and opt for a robust sum insured. The critical illness insurance will help you fight the terminal disease in the best possible manner. If you have a family history of cancer, you are more susceptible towards the same.

You also need to keep inflation in mind when deciding on the sum insured.

  1. Coverage

Cancer can be diagnosed in three stages. First is the pre-cancer stage, followed by early stage and the critical stage. You need to opt for a plan that offers the payout based on the stage and will cover for the treatment and additional expenses incurred at these stages.

Most plans offer a percentage of the sum insured which is payable if cancer is diagnosed at an early stage and a 100% sum is paid at the critical stage of cancer.

  1. Waiting Period

Waiting period is an important part of the policy. The lesser the waiting period in the policy, the better it is. The waiting period will be of two types. The first type is the initial waiting period from 90 days to 180 days.

During this period, you cannot claim from the insurance policy. The second waiting period is the survival period where the insured has to survive for a specific number of days from the diagnosis of cancer.

  1. Waiver of Premium and Income Benefit

When one is diagnosed with cancer, their earning capacity and productivity deteriorate. It could lead to loss of regular flow of income and an inability to manage the household and other expenses. There are plans that offer waiver of premium where the premium amount is waived off for a period of three to five years.

There is also an income benefit where regular monthly income which is about 1% to 2% of the sum insured is payable for five years in most plans.

  1. Policy Term

It is important to understand the offering of the plan, your age and the policy term. If you have a wider policy term, you will be able to enjoy a higher coverage and protection at the same premium amount.

Bajaj Allianz General Insurance offers a critical illness insurance plan for women too. Bajaj Allianz also provides comprehensive coverage in case of terminal illness like cancer. It has an age band of 6 years to 60 years and the sum insured ranges from Rs. 100,000 to Rs. 50,00,000.

You need to be wise and choose the right cancer health insurance plan for yourself. Consider the cost and weigh it with the benefits associated with the same.