Being diagnosed with cancer can be disheartening, not just because of the rigorous recovery process but also because of the financial constraints that treatment can impose on your family. The most effective strategy to mitigate the impact of this financial load is to take preemptive measures with cancer insurance coverage. What exactly is a cancer insurance policy, what does it cover, how beneficial is it, and must I get one? Get the answers to these questions and other things you need to know about cancer insurance with this guide.
Cancer Insurance Policy
Cancer insurance is a type of supplemental insurance designed to provide financial assistance if an individual is diagnosed with cancer. It is not a comprehensive health insurance plan but rather a specific policy that focuses on the costs associated with cancer diagnosis and treatment. Cancer insurance covers various aspects of cancer treatment, including surgery, chemotherapy, radiation therapy, medications, and other related medical expenses. However, the coverage details can vary. As a result, it’s important that you carefully review your policy to understand what is covered and what is not.
Some cancer insurance policies offer additional benefits, such as coverage for certain screening tests, recovery care, or even benefits for specified cancer stages. These additional benefits can vary among policies. Like any insurance policy, cancer insurance may have waiting periods before certain benefits become available. Additionally, pre-existing conditions or certain types and stages of cancer may be excluded from coverage, depending on the terms of the policy.
Policyholders pay regular premiums to maintain their cancer insurance coverage. Premiums can vary based on factors such as age, health status, coverage amount, and the type of policy. Policy terms, including the duration of coverage and renewal options, should be clearly outlined in the policy documents. Cancer insurance is often designed to complement existing health insurance coverage. It does not replace comprehensive health insurance but provides an additional layer of financial protection for cancer-related expenses.
How Does Cancer Insurance Work?
Cancer insurance is often designed to work in conjunction with regular health insurance. It does not replace traditional health insurance but provides an extra layer of financial support for the specific costs associated with cancer. When a policyholder is diagnosed with cancer, the insurance policy pays out a lump-sum benefit. This amount is predetermined and specified in the policy. The payout is made regardless of the actual costs incurred for treatment, and the policyholder can use the funds as needed, whether for medical expenses, non-medical expenses, or other financial obligations. The exact time you’ll get this benefit after your diagnosis differs. This is because some providers demand a waiting period before payout.
Is Cancer Insurance Worth Getting?
From my perspective, I believe it is. When someone is diagnosed with cancer, cancer insurance can provide financial assistance. With finance readily available, you can focus on your well-being and the process of recuperation. However, whether cancer insurance is worth getting depends on your circumstances, preferences, and financial considerations. However, it’s advisable so long as you can afford it.
What is the Best Insurance if You Have Cancer?
Choosing the best insurance for individuals with cancer can depend on various factors, including the specific type and stage of cancer, individual health needs, and financial considerations. The following are some considerations when looking for insurance coverage for cancer:
#1. Health Insurance
If you have access to employer-sponsored health insurance, that is often a good option. These plans may cover a significant portion of cancer treatment costs. If you don’t have access to employer-sponsored insurance, you can explore individual health insurance plans. Be sure to carefully review coverage for cancer-related treatments, medications, and hospital stays.
#2. Critical Illness Insurance
Some people opt for critical illness insurance, which provides a lump-sum payment upon the diagnosis of a covered critical illness, including cancer. This can be used to cover medical expenses or other financial needs.
#3. Supplemental Insurance
Consider supplemental insurance policies that specifically cover cancer-related costs. Beyond what standard health insurance covers, these policies might offer additional benefits.
#4. Medicare or Medicaid
If you are eligible, Medicare or Medicaid may provide coverage for cancer treatments. Each state in the U.S. has different Medicaid programs, so it’s important to check the specific details for your location.
#5. Prescription Drug Coverage
Ensure that your insurance plan provides adequate coverage for prescription medications, especially if you require expensive cancer medications.
#6. Out-of-Pocket Costs
Consider the out-of-pocket costs, including deductibles, co-payments, and co-insurance. Some plans may have lower monthly premiums but higher out-of-pocket expenses.
#7. Network Coverage
Check if the insurance plan has a network of hospitals, clinics, and specialists that are convenient for your cancer treatment.
#8. Pre-Existing Condition Coverage
Confirm how the insurance plan handles pre-existing conditions, as cancer may be considered a pre-existing condition.
#9. Special Programs
Some cancer patients may qualify for special programs or assistance from pharmaceutical companies or non-profit organizations that help with the cost of medications or other treatments.
Do Life Insurance Policies Pay Out for Cancer?
Yes, if you obtained life insurance before your cancer diagnosis, you may be covered if you die from cancer during the policy’s term. Conventional insurance commonly encompasses a death benefit that applies to all causes, ensuring that individuals are not excluded from coverage due to natural causes of death, such as cancer.
How Much Does a Cancer Policy Pay Out?
About $5000,000 to $200,000 or even more—the exact amount you’ll get as a payout depends on your policy.
Best Cancer Insurance Policy
The following are some of the best cancer insurance policies:
#1. Aflac
It’s going to be fine if we claim that Aflac is one of the best cancer insurance policies. This is because it offers the most benefits without a fixed lump sum. This is quite different from the policies of most other cancer insurance policy providers. Generally, cancer insurance gives out a lump sum upon your diagnosis, but Aflac covers some or all cancer costs, including diagnosis, surgical port anesthetic, chemotherapy, hospital confinement, and blood or plasma. There are several benefits that Aflac provides to its cancer policyholders that are not available in other insurance companies’ policies.
#2. UnitedHealthcare
Next on our cancer insurance policy is UnitedHealthcare. I love the fact that this is more than a cancer coverage plan. UnitedHealthcare has a critical illness plan that covers serious illnesses like cancer and so on. If you want a lump-sum payout, then UnitedHealthcare may be your best bet. So if you feel you need a single policy that covers multiple critical illnesses and diseases, you have to consult their agent. You can also modify the policy with benefit riders of different amounts. Physicians Mutual does not give online quotations; therefore, contact a representative for premium information.
#3. Breeze
Breeze stands out because of its simplicity and ease of application. They have a web platform that prospects can use to generate quotes. Breeze provides critical illness insurance for illnesses that include cancer. Their online application provides a quote and an instant decision within minutes. To get quotes, you’ll need to provide answers to several questions. A 35-year-old mother of two can get $50,000 in coverage for as little as $45 monthly.
#3. Cigna
Cigna offers customizable lump-sum cancer insurance with heart attack and stroke coverage. Recurrence coverage is another option. You can get another lump sum if your doctor diagnoses a different cancer. Radiation and chemotherapy benefits, disease benefits, and cancer benefit builders improve the value of your policy over time. You can get individual coverage or add coverage for a partner or spouse, single-parent family, or family. Cigna also offers Cancer Treatment Insurance, which covers surgeries, drugs, radiation, transportation, and rehabilitation without a lump sum. Anyone can get quotes online after providing answers to their questions.
#4. Mutual of Omaha
The last on our list of the best cancer insurance policies is Mutual of Omaha. The company provides supplementary cancer insurance and also allows users to obtain online quotes and apply for the policy through an online platform. Other distinctive features of Mutual of Omaha insurance appealed to us. For instance, someone who has previously experienced cancer may still be eligible to apply, provided that they have been free of cancer for a minimum duration of five years. Not every insurance provider will take this risk. Another unique feature that they provide is that they impose restrictions on rate adjustments. This is primarily to ensure that, in the event of a rate increase affecting all policyholders, individual policyholders will not encounter an increase in their respective rates.
Why do People Buy Cancer Insurance?
People may choose to buy cancer insurance for several reasons, such as the following:
- Financial Protection: Cancer treatment can be expensive, even with comprehensive health insurance. Cancer insurance can help cover the costs of treatments, medications, surgeries, and other medical expenses that may not be fully covered by regular health insurance.
- Income Replacement: Cancer often requires time away from work for treatments and recovery. Cancer insurance may provide a lump sum or periodic payments that can help replace lost income during this period, allowing policyholders to focus on their health without worrying about financial instability.
- Non-Medical Expenses: In addition to medical bills, cancer can bring about various non-medical expenses such as travel costs, lodging, and home modifications to accommodate special needs during recovery. Cancer insurance may help cover some of these additional expenses.
- Deductibles and co-pays: Even with health insurance, individuals may face out-of-pocket expenses such as deductibles and co-pays. Cancer insurance can help offset these costs, reducing the financial burden on the policyholder.
- Critical Illness Coverage: Cancer insurance is often part of a broader category of insurance known as critical illness insurance. This type of insurance provides coverage for a range of critical illnesses, not just cancer. It aims to provide financial support when an individual is diagnosed with a specified critical illness.
- Peace of Mind: Knowing that there is specific coverage in place for cancer can provide peace of mind. It allows individuals to focus on their health and recovery without the added stress of financial concerns.
Is Aflac Cancer Care Worth It?
Yes, it is. Aflac is one of the best cancer insurance providers in the United States. This is because it offers the most benefits without a fixed lump sum. This is quite different from the policies of most other cancer insurance policy providers. Generally, cancer insurance gives out a lump sum upon your diagnosis, but Aflac covers some or all cancer costs, including diagnosis, surgical port anesthetic, chemotherapy, hospital confinement, and blood or plasma. There are several benefits that Aflac provides to its cancer policyholders that are not available in other insurance companies’ policies.
What Does Cancer Insurance Cover?
According to Metlife, the extent of coverage is subject to variation and is determined by the rules established by insurance companies. Certain cancer insurance policies offer coverage for both medical and non-medical expenditures, whereas others solely encompass particular medical costs. The inclusion of expenses may vary depending on the specific policy in question.Â
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- Radiation/chemotherapy
- Lab tests
- Hospital stays
- Co-pays
- Deductibles
- Surgery
- Transportation and lodging
- Child care
- Household bills
- Doctor appointments
- Experimental treatments
- Prescription medications
- X-rays
- Blood transfusions
- Preventive screenings
How to Get Cancer Insurance
If you already have a health policy, you can consult your insurance provider to see if they have any cancer-related coverage for you. If they do, you can check the coverage and its benefits. However, if they do not, you can shop for providers that offer such coverage.
​​Do I Need Cancer Insurance?
Well, it’s a personal decision. Cancer can be diagnosed in anyone, irrespective of their age, health status, or family medical background. Engaging in proactive measures to prepare for unforeseen circumstances may enhance one’s future protection. But if any of the following applies to you, then you need to buy this coverage:
#1. You have a history of cancer in your family
Individuals with a family history of cancer may have an increased susceptibility to being diagnosed with the disease. Cancer insurance might offer enhanced financial reassurance in cases where there is a family predisposition to the disease.
#2. You have a high-deductible health plan (HDHP)
Cancer insurance can offer financial assistance in mitigating the substantial out-of-pocket expenses associated with a health plan characterized by a substantial deductible.
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