To have or not to have: Fighting cancer with special insurance

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For most of us, cancer might seem far-fetched, a deadly disease we are unlikely to ever have. But a 2022 Indian Council of Medical Research (ICMR) notes that incidences of cancer in the country are only set to grow from 14.6 lakh cases that year to an estimated 15.7 lakh by 2025. In fact, as trends suggest, one in every nine Indians is susceptible to develop cancer during their lifetime. 

Cancer treatment can be an expensive affair. And much like this disease does to the body, cancer can also uncontrollably and irreparably damage your finances. In such a case, having cancer-specific insurance coverage could bring you some relief, both financial and physical. 

Says health insurance expert Bhakti Rasal, “Many individuals mistakenly assume that their regular health insurance will cover all the costs associated with cancer treatment. However, the reality is that standard health insurance plans may not fully cover all the expenses or new treatments, leaving patients and their families with significant out-of-pocket costs. Moreover, most policies do not take into account indirect costs of cancer like loss of income due to inability to work, and the need for specialized equipment or home modifications”.

While many insurers offer cancer-specific  insurance policies, others subsume cancer treatment under the critical illness cover. As per data, the median age in India when cancer is generally detected is between 50-60 years. 

Be aware of caveats 

For most policies, the annual premiums payable can burn a hole through your pocket. For instance, the New India Cancer guard asks for Rs 21,103 as annual premium for a non-smoker male aged between 56-60 years, for a sum insured of Rs 50 lakhs. 

These premiums inch even higher when it comes to women, given that they are more vulnerable to breast and cervical cancer. Together, they make up for about 40% of all cancer cases amongst women in India. No wonder that for the same age group, the premium demanded is about Rs 28,000. 

Moreover, payouts for early-stage detections are lacking. For instance, take the  Aditya Birla Activ Secure plan, which offers a sum insured between Rs 5 lakh-Rs 1 crore. If any symptoms of an early and advanced stage cancer are detected within 180 and 90 days respectively, or within the  waiting period of buying the policy, you will not receive anything. 

Also, in case of early stage cancer, you will receive only 50% of the sum insured.

The Oriental cancer plan categorically excludes cancerous growth that is borderline or premalignant. Despite recovery being a longer road than actual hospitalization, the plan covers only up to 90 days of post-hospitalization expenses. After that, the patient is on his/her own. 

Similarly, under the New India Cancer Guard Plan, which has a waiting period of 75 days, any documents submitted for reimbursement claims become inadmissible after 15 days. Also, more often than not, the policy does not keep up with changing, innovative ways of treatment that might benefit the policyholder. 

Despite these drawbacks, such specialized coverage might serve as a good financial support during such challenging times, ensuring they have access to the best possible treatment without worrying about the associated costs.

However, Vivek Chaturvedi, CMO and Head of Direct Sales, Digit General Insurance highlights that it is advisable to have such a cover handy only in case your family has a history of cancer. However, in other cases, one should buy comprehensive health insurance  with a good sum insured. Seeking standalone covers for different illnesses may not be a prudent idea. It is better to get a super top-up cover on a base amount to get a higher coverage and pay a lower premium. You can also get a higher sum insured through cumulative Bonus if you do not make any claim during the year”, he notes.