Does a Cancer Cover Really Help? What are Some of Its Top Benefits?

Being diagnosed with cancer can turn your life upside down in an instant. You can quickly go from living a happy life to worrying about treatment, your mental health, medical bills, childcare expenses, loans, etc. Furthermore, unexpected expenses like chemotherapy, transportation, and expert and second opinions pile up, affecting your mental and financial health drastically.

This is why a cancer cover can help you in saving the day, financially speaking. A cancer cover offers a layer of financial protection in case you ever get diagnosed with cancer. Since cancer treatment is expensive, your primary health insurance will not be enough. In addition, your health insurance might not provide coverage for various types of cancer. Therefore, purchasing a cancer cover is the best bet to win the fight against cancer. 

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Adding a cancer cover might just prove to be the difference between excellent treatment with financial security and substandard treatment with poor finances or bankruptcy. 

You might be wondering why choose a cancer cover and not a critical illness cover when the latter would include coverage for the former as well. There are several reasons for this, which are mentioned in the following section. 

Cancer Cover vs Critical Illness Cover

People often end up using these two terms interchangeably, assuming them to be the same type of insurance. However, that is not the case. A cancer cover just provides coverage for cancer treatment and no other diseases. On the other hand, a critical illness policy covers about 30 major illnesses, which includes cancer.  Although, not all types of cancer may be covered. This depends upon the insurance provider chosen. 

The premium for cancer insurance is lower than a critical illness policy since the former provides cover only for a single disease. In terms of similarities, policyholders receive a lump sum amount in both policies in case of being diagnosed. 

Benefits of Cancer Insurance Policies

• Safeguards Your Financial Health

Paying for cancer treatment out of your pocket can put a massive strain on your finances, even if your primary health policy covers part of the treatment. This is because medical expenses for cancer are extremely costly. Thus, it makes sense to add a cancer cover to your pre-existing health insurance policy. This way, you will not have to pay for cancer treatment if diagnosed since the cancer insurance plan would cover the expenses. 

• Tax Benefits on Premium Paid

Cancer cover policyholders are allowed to claim tax benefits on the premium paid towards insurance. This regulation was introduced under Section 80D of the Income Tax Act of 1961. Policyholders can claim a tax deduction of ₹25,000 when the insurance premium is paid for themselves, their spouses, and their children. In the scenario where policyholders are also paying the premium for their parents, the deduction amount increases to ₹50,000.

• Presence of No Claim Bonus Clause

A large number of cancer cover providers have a no claim bonus written into the policy. A no claim bonus entitles policyholders to a benefit in a scenario where they do not make a claim for a specified time limit. Usually, the benefit is in the form of an increase to the sum insured amount or a discount on the premium amount to be paid. 

• Provides Coverage Throughout the Treatment 

Cancer has four stages: Carcinoma in Situ (CIS), Early, Major, and Critical Stages. In the case of cancer treatments, insurance providers include coverage for all four stages. However, there are some exceptions to this in the form of cancer caused due to biological and nuclear attacks, chemical sources, STDs like AIDS and HIV, narcotics, and alcohol. When policyholders are diagnosed with cancer, their cancer cover offers them a lump sum amount or fixed pay-outs to cover the treatment cost.  

Choose Your Cancer Cover Carefully

A cancer insurance policy is not something that you can buy on a whim. It requires meticulous research to understand the terms and conditions, the inclusions, the exclusions, claim settlement ratio, sum insured, and the premium amount. Therefore, it makes sense to purchase a cancer cover only once you have a fair idea of which plan suits your requirements perfectly.  

Besides, choosing the right insurance provider can also make a significant difference in the financial stability of your future. So, ensure that you opt for reliable and known insurers like Care Health Insurance to get maximum benefits with your cancer cover.