Cancer is a scary disease, but it’s also a common one. One in every three people will develop cancer during their lifetime, according to the National Cancer Institute. That’s why many people wonder whether they should purchase supplemental insurance that covers the cost of treating cancerous tumors and other conditions related to this disease. If you’re wondering whether cancer insurance is worth it or not—and if so, how much you should get—read on for answers to some of the most common questions about this type of coverage.
What is cancer insurance?
Cancer insurance is a type of life insurance that pays out a lump sum if you have been diagnosed with cancer. It’s a type of permanent (also known as whole life) insurance, which means it lasts for the rest of your life. There are also different types of cancer insurance that can be used to cover other costs associated with your treatment.
The main difference between cancer and other types of life insurance is that there’s no need for medical underwriting when buying it. You also don’t have to wait for an insurer to approve your application before you can get coverage. This makes getting started is easier than with some other kinds of policies, but it also means there aren’t any exclusions on the policy or caps on how much money you receive each month if something happens while it’s in place.
Does it cover all types of cancer?
No. While there are some policies that will cover any type of cancer, most policies are specific to certain types. For example, you may be able to get a policy that covers breast or colon cancer, but not prostate or pancreatic cancers. Some policies cover specific treatments for a specific type of cancer (such as chemotherapy) and others cover all forms of treatment.
Is it the same as critical illness insurance?
No. Cancer insurance is a type of life insurance, which means you buy it to protect your loved ones from financial loss after your death. Critical illness insurance covers a range of illnesses, including cancer, but also includes other types of critical illnesses such as stroke and heart attack.
There are some similarities between the two types of coverage. Both cover the costs related to treatment and can also pay out lump sum payments in the event that someone becomes ill. However, in general terms, cancer insurance covers only cancer-related medical costs while critical illness will cover all matters of serious illnesses or injuries.
Will my health insurance cover me if I get cancer?
Your health insurance will cover you if you get cancer. The only exception is if your plan includes a pre-existing condition exclusion that prohibits coverage for any medical condition that existed prior to the effective date of your policy, or if your plan has a lifetime limit on benefits (which means it limits how much money it will pay for covered services). Even then, there are exceptions. If you have an employer-sponsored health insurance plan and were enrolled when the cancer diagnosis was made and within the last 12 months, then your employer may not charge a higher premium due to having had cancer in those circumstances.
On top of all this complexity, in some cases people who purchase their own plans might find themselves ineligible for special programs administered by states with high rates of uninsured residents.
How does cancer insurance work?
If you have cancer insurance, the company will pay you a lump sum if you get cancer. This is usually tax-free. The lump sum can be used to pay for medical expenses related to your cancer treatment. Almost all of these policies also include a guaranteed maximum benefit (GMB), which is the maximum amount that they are obligated to pay out on your behalf in any given year.
Many people are not familiar with this type of coverage, but it can be a critical supplement to health care plans.
Many people are not familiar with this type of coverage, but it can be a critical supplement to health care plans. Cancer insurance provides coverage for the cost of treatment and other expenses that are not covered by your primary insurance plan. It also includes financial protection if you have to stop working due to illness.
If you’re wondering whether cancer insurance is right for you, the best thing to do is talk to an expert. They can help you understand what the policy covers and whether it will be a good fit for your needs. After all, not every person who gets sick needs this type of coverage—but if you do, we think it could be worth considering! Contact Care Financial today to schedule a consultation to discuss if cancer insurance is right for you.
