Cancer insurance is a type of insurance plan that is configured to offer financial assistance to patients diagnosed with the disease. The policy will, however, have a waiting period that has to be fulfilled before the coverage kicks in and offers protection to the insured.
The incidence of cancer is on the rise across the world. Changes in lifestyle, genetics, and environmental factors are attributed to be the reasons for the sharp increase in the figures. In India alone, studies have indicated that the new cases of people suffering from cancer will rise from 14 lakh (as per records from 2016) to 17.3 lakh by 2020. According to reports consolidated by the World Health Organisation, India ranks among the top three countries with the largest number of patients suffering from haematologic cancer.
The premium for cancer insurance is usually paid at various stages of diagnosis and treatment, i.e., carcinoma in situ (CIS), initial stage, major stage, or critical stage. A does not offer the insured any maturity, surrender, or death benefit.
With the rising cost of medical treatments, a patient who suffers from cancer would take a big hit in terms of financial obligations. It is estimated that the cost of medical diagnosis and treatment (including surgery, chemotherapy, radiation, hospitalisation, etc.), would be anywhere between Rs.2.5 lakh and Rs.20 lakh for a 6-month period. So being prepared with a suitable insurance plan has now become a necessity, more so for people who have a history of cancer in the family.
In order to qualify for cancer insurance, an individual should not be suffering from any pre-existing conditions that are linked to cancer. People who have been previously diagnosed with and treated for the disease cannot apply for the insurance as well.
Cancer can be broadly classified into four main stages:
The cancer insurance plans offered by life insurance companies in India offer specific coverage pertaining to different stages that the disease is detected at.
Some of the in the country are offered by leading insurance providers in the market, i.e., Max Life, HDFC Life, ICICI Prudential, Aegon Life, PNB Metlife, etc. The key features of these plans are tabulated below:
Plan name | Features | Entry age | Sum assured | Policy term | Waiting period |
Max Life Cancer Insurance Plan |
| Minimum - 25 years Maximum - 65 years | Minimum - Rs.10 lakh Maximum - Rs.50 lakh The sum insured can be chosen in multiples of Rs.5 lakh | Minimum - 10 years Maximum - 40 years | 180 days from the date of policy commencement |
Aegon Life iCancer Insurance Plan |
| Minimum - 18 years Maximum - 65 years | Minimum - Rs.10 lakh Maximum - Rs.50 lakh | Minimum - 5 years Maximum - 70 years minus entry age | 180 days from the date of policy commencement |
HDFC Life Cancer Care Plan |
| Minimum - 18 years Maximum - 65 years | Minimum - Rs.10 lakh Maximum - Rs.40 lakh | Minimum - 10 years Maximum - 20 years This is subject to maximum maturity age of 75 years | 180 days from the date of policy commencement |
ICICI Prudential Heart/Cancer Protect |
| Minimum - 18 years Maximum - 65 years | Minimum - Rs.2 lakh Maximum - Rs.50 lakh | Minimum - 5 years Maximum - 40 years | 6 months from the date of policy commencement |
PNB Metlife Mera Cancer Care |
| Minimum - 18 years Maximum - 65 years | Minimum - Rs.5 lakh Maximum - Rs.40 lakh | 10, 15, or 20 years | 180 days from the date of policy commencement |
Some of the key features and advantages of taking cancer insurance plans are as follows:
The following eligibility conditions are applicable for most cancer insurance plans available in the market today:
The documents required to purchase cancer insurance are as follows:
Any other document specifically requested by the insurer on a case-by-case basis should be submitted.
The exclusions applicable to most cancer insurance policies are as follows:
The insured should raise a claim under the cancer insurance policy as soon as he/she is diagnosed with the disease. The policy coverage would offer the insured benefits such as lump sum payouts, regular income, waiver of premium, etc. based on the policy terms and conditions.
Before taking a cancer insurance plan, it is advisable to do some research and be well-prepared to make a judicious purchase decision. The following points should be specifically noted:
Health insurance/mediclaim plans offer indemnity coverage that pays only for the hospitalisation of the insured individual. On the other hand, cancer plans offer coverage for all expenses incurred following a cancer diagnosis. The payout provided to the insured is dependent on the stage of the disease.
Critical illness plans may have some exclusions regarding cancer, such as pre-malignant tumor, prostate cancer - stage 1, cancer in situ (CIS), etc. Cancer plans offer more exhaustive coverage and provide protection against various stages of cancer, even mild stages.
Some of the key differences between a cancer insurance plan, a critical illness plan, and a mediclaim policy are as tabulated below:
Parameter | Cancer Insurance | Critical Illness Plan | Mediclaim/Health Insurance Plan |
Purchase reason |
|
|
|
Coverage | Cancer insurance plans usually offer coverage against all stages of the disease, i.e., pre-stage, early stage, and major stage. | This plan offers coverage for some common critical illnesses that are clearly specified in the policy document. It may not cover all stages of cancer. The payout received from the plan can be spent by the policyholder in whatever way he/she chooses. | This plan offers coverage for the actual surgical and medical expenses incurred. The coverage is also limited to hospital expenses with stringent sub-limits on room rent. |
Ideal for | This plan is suitable for people who understand the risks of cancer and the cost of treatment of the disease. It should be noted that a cancer insurance plan can be bought along with a basic health insurance policy. This will enhance the health insurance coverage received by the insured. | This plan is ideal for people who desire protection from several critical illnesses, not just cancer. People who are at high risk for developing a specific critical illness can also opt for this plan. An individual can buy a basic health insurance policy and then avail a critical illness cover for added protection. | This is a basic health insurance scheme that every individual should be protected with. A basic health insurance plan will shield one against rising medical costs. This plan should ideally be given precedence over the other two plans. However, an individual who is at high risk for cancer/other critical illnesses but is insured with only a basic plan will find the coverage inadequate. |
Policy term | This scheme can be availed for a long term, such as 20 years. | This plan can be taken for a long policy term, like 20 years. | This plan has to be renewed after 1 or 2 years. |
Usually an authorised representative from the insurance company will contact you and fix an appointment with an approved medical examiner. Get in touch with your insurer for more details.
All premiums paid towards a cancer insurance policy and the benefits received are liable for tax deductions under Section 80D of the Income Tax Act, 1961. However tax benefits are subject to change from time to time. Hence, you should check with an authorised tax consultant for the latest provisions.
If you do not pay premiums within the grace period, the policy will move into lapsed status. No benefits will be payable further. You can choose to reinstate a lapsed policy by following certain procedures laid down by the insurer.
If you are dissatisfied with the cancer policy you have purchased, you can return the same back to the insurance company with a letter stating the reasons for the objection. This should be done within 30 days of receipt of the policy document. Once the policy is returned, it will be terminated. Premium that has been paid will also be returned.
The insurer would usually request for a detailed description of your immediate family members’ history of the disease. The insurance will be provided to you based on underwriting.
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