Cancer is one of the most appalling diseases in the world. It can shatter the life of an individual or a happy family. Interestingly, cancer can be overcome if detected early and treated effectively, but the treatment cost stands as a hurdle for most low to middle-class people. This is why investing in cancer insurance plans early is a prudent decision. However, for a broader safety net, consider a Comprehensive health insurance plan, though it is not as easy as it sounds to choose the right one.
Insurance is a compilation of many things, and it is essential to know about the plan in detail before putting your money into it. You should carefully Find Policy Limits and understand what is included or excluded in each policy. This comprehensive overview serves as a guide to cancer insurance policies to help you choose the right one.
What is a Cancer Insurance Plan?
A cancer insurance plan is a tailored policy that exclusively offers coverage for diagnosis and treatment costs of cancer. It acts as a supplemental plan to manage the risks associated with this critical illness and its manifestation. It helps to reduce the financial burden of cancer patients, allowing them to access standard treatment without making a hole in their pockets.
The number of cancer cases in India is projected to rise to 15.7 lakh in 2025, as per the Indian Council of Medical Research-National Cancer Registry Programme. According to healthcare experts, inadequate sanitation, insufficient healthcare infrastructure, surging pollution levels, and nutritional deficiency are the primary reasons behind the soaring numbers. To combat this situation, the importance of cancer insurance has become more crucial than ever.
Which Documents Are Required to Buy a Cancer Insurance Plan?
Certain documents are required to buy a cancer health plan. Here is a detail:
- Identity and address proof (Aadhaar card, PAN card, etc.)
- Bank statement
- Passport-size photographs
- Medical reports that prove that you do not have cancer while buying the policy. Generally, there is no pre-existing cancer insurance, meaning no cancer policies cover pre-existing cancerous conditions.
Please note apart from the above-mentioned documents, the insurance company may ask for additional documents depending on the case.
How Does a Cancer Insurance Plan Work?
Here is a step-by-step guide to decoding how a cancer health plan works. Have a look:
- Step 1: An individual purchases the policy for a specified term by paying easy premiums.
- Step 2: After the waiting period, which is generally 160 days, the insured individual can file a claim if diagnosed with pre-cancer or early-stage cancer.
In case the disease progresses to its next stage, the balanced sum insured will be paid.
If the cancer is diagnosed at a major stage, the entire sum insured is payable.
Please note: Your sum insured for cancer insurance is bound to increase at a permissible percentage as a reward for every claim-free year.
Let us understand this process by an example:
Mr X bought a cancer insurance plan for individuals for a sum insured of ₹50 lakh. For the last three consecutive no-claim years, his total coverage amount doubled, reaching ₹1 crore. Then, in the 4th year, he was diagnosed with cancer and incurred a treatment cost of ₹50 lakh. With the policy in hand, he will not have to bear any out-of-pocket medical expenses. Additionally, since the sum insured is higher than the medical bill, it will also cover him for associated healthcare costs.
What are the Benefits of a Cancer Insurance Plan?
If you are still standing in the middle about whether you should buy a cancer insurance plan or not, have a look at some of its benefits:
- Rising Medical Costs: Since medical costs are rising exponentially, cancer insurance offers optimum financial coverage to meet the expenses.
- Coverage Against Various Types of Cancer: In the purview of surging cancer cases, most insurance providers are offering cancer plans for various types of cancer. However, the inclusion varies for insurers.
- Premium Waive Off: Policyholders can continue the plan post-diagnosis of cancer in the early stage. If the cancer gets cleared initially, then insurance companies often waive the premium for the next 3 to 4 years.
- Income Benefits: Cancer makes the patient take some time off from work. During this time, the policy acts as an income replacement. The company grants to pay the lump sum at monthly intervals to make up for the income loss.
- Tax Benefits: If you pay premiums for cancer policies, you can actually deduct those costs from your taxes thanks to Section 80D of the Income Tax Act. This serves as an added financial incentive.
What is Excluded from a Cancer Insurance Plan?
The following factors are not covered under the cancer insurance plan:
- Cancer as a pre-existing condition
- Cancer caused by sexual transmission
- Diagnosed with cancer during the waiting period
- Skin cancer
- Prostate tumours with a six or lower Gleason score
- RAI stage 3 chronic lymphocytic leukaemia
Please note: There can be additional exclusions to the policy. Mindfully read the terms and conditions and reach out to your provider if you encounter any confusion.
How does the Claiming Procedure and Payment Work for Cancer Insurance?
Here is a detailed overview of how the claim procedure and payment work for cancer insurance:
- Claim Submission: Timely claim submission and proper documentation are the keys to avoiding rejection. Submit your claim via the claim form detailing your diagnosis, treatment plan, and information about your healthcare provider.
- Claim Review: Post-submission, your insurer will review that claim to ensure it checks all the parameters.
- Claim Approval: Once approved, the insurer releases the payout according to the terms of the policy.
If your claim gets rejected, the company will send a letter mentioning the reason for rejection. Carefully read the letter and reapply your claim if it is genuine.
Which is the Best Cancer Insurance Plan in India?
While the Indian market comprises a vast selection of cancer insurance for senior citizens as well as others, cancer plans from Star Medical Insurance have gained massive popularity. Any individual between the ages of 5 months and 65 years can avail of these plans. Here is a detail:
- Star Cancer Care Gold Plan: This plan offers coverage to people diagnosed with Stage 1 and Stage 2 cancer along with recurrence of cancer, metastasis and unrelated second cancer.
- Pre-existing disease waiting period: 30 months (cancer) and 48 months (other ailments)
- Sum insured: ₹3 lakh – ₹5 lakh
- Star Cancer Care Platinum Plan: Unlike the former one, this policy offers coverage for all stages of cancer along with its other coverage benefits.
- Pre-existing disease waiting period: 30 months
- Sum insured: ₹5 lakh – ₹10 lakh.
Final Words
To sum up, cancer is a deadly disease, but with the right treatment and diagnosis, it is curable. Selecting the right cancer insurance plans is crucial to be financially safe and secure. We hope this comprehensive overview of cancer insurance has helped you to understand the nitty-gritty of the plan more, and now, you can choose the best insurance for yourself, considering your budget and needs.
