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Despite the great strides that medical science has taken over the past few decades, the very mention of cancer is unnerving. Making adequate provisions well in advance to be prepared for any such circumstances cannot be stressed enough. This World Cancer Day, let us explore how a critical illness insurance cover can help cope with this disease.

Critical illnesses are on the rise in India. According to a 2020 report published by the Indian Council of Medical Research (ICMR) India is likely to have 17.3lakh new cancer cases and over 8.8 lakh cancer deaths in 2021 alone, with cases of lungs, breast and cervix cancer topping the list.

What is even more worrying is that with the cost of cancer treatment amounting to Rs 20 lakh or more depending on the stage it is detected in, the financial burden on a family with a cancer patient is distressing.

The lack of finances or the inability to access finances at the right time, often delays access to advanced medical facilities thus decreasing chances of recovery and survival. This is where a critical illness insurance plan comes in.

What is a critical illness insurance cover?

A critical illness cover provides the benefit of a lump sum after the diagnosis. This amount can help cover the cost of treatment, care, and recuperation expenses, with regards to the critical illness diagnosed. The common misconception among policy holders is that a health insurance and critical illnesses are interchangeable.

Thus, a comprehensive health insurance policy is sufficient to cover the cost of treatment of cancer or any other critical illness. The truth however is that though they are not interchangeable, they complement each other.

How is it different from health insurance?

A critical illness insurance plan unlike a regular health insurance does not reimburse costs of hospitalisation but disburses a lump sum upon the diagnosis of the disease. This amount can then be used not only for treatment and caregiving expenses during treatment, it can also be used the family of the patient to cope with loss of income or halt in cash flow due to the inability of the patient to earn.

The sum insured in cases of a critical illness insurance plan can range from Rs 2 lakh to Rs 50 lakh provided the insured is the earning member of the family. Any individual between the age of 18-65 years can opt for a critical illness cover.

The survival period or benefit of the insurance can be availed if the insured is alive for a period of 28 days from the date of the first diagnosis. Buying a critical illness cover also provides IT benefits under Section 80D. Thus, it is no exaggeration to say that that purchase of a critical illness cover is financially prudent in more than one way.

This World Cancer Day, we wish you good health, the ability to keep stress at bay and safeguard against all ailments, but we also urge you to be prudent and safeguard yourself against financial distress in case of a critical illness such as cancer.

(The writer is Head – Underwriting, SBI General Insurance. Views expressed are personal)