1. The need for a cancer insurance plan

The need for a cancer insurance plan

HAVE you ever wondered how will you cope if you ever contracted cancer? A back of the envelope calculation shows that even in the early stages, the treatment cost can be as much as R12 lakh.

New Delhi | Updated: September 27, 2016 12:42 PM

HAVE you ever wondered how will you cope if you ever contracted cancer? A back of the envelope calculation shows that even in the early stages, the treatment cost can be as much as R12 lakh.

There are chances that you have opted for a health insurance policy to ensure your financial protection, but have you ever thought if it is enough in case of a critical disease such as cancer? Some of you may have even opted for a critical illness cover in a health insurance policy. But how many of you are aware about the definition of ‘critical’ stated in such policies.

Such policies might give you temporary relief but are applicable only in the advance stages of critical diseases such as cancer. Therefore it becomes necessary to go for cancer dedicated policies which are specially designed to suit the unforeseen financial needs.

Stages of payout

Cancer dedicated policies offer 25% of the sum assured to the policyholder on the diagnosis of the disease that takes care of the expenses at the initial stages. The amount is credited to the insured person’s account immediately and all future policy premiums are waived off till the end of the policy term. If it is detected in more than one organ, 20% of the sum assured is given for the treatment of each organ. In the advanced stages, a policyholder can claim up to 100% of the sum assured and even get an additional 10% of the sum assured for a period of 5 years as income.

Cost of the cover

A cancer dedicated policy will provide a 30-year-old a sum assured of R20-25 lakh for a mere payment of R4,500-6,000 per year (on an average) for a 35-40 year term, which is less than the cost of a weekend road trip with your loved ones.

So, if you are still thinking whether or not to opt for a cancer dedicated product, the answer is yes. In case cancer does happen to you unfortunately, your timely financial management can ensure that the high costs of treatment are taken care off.

Aalok Bhan the writer, is director Product Solutions and Customer Marketing, Max Life Insurance.

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