All You Need to Know About Cancer Insurance in India

by Vinaya HS on January 1, 2016

in Finance

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Cancer doesn’t just affect you physically. A diagnosis of cancer can be emotionally devastating and to add to those conflicting feelings, you have the added stress of having to worry about managing your finances so that you can seek the necessary treatment and care. Unfortunately, for many people, simply having a health insurance plan doesn’t guarantee financial security or coverage when dealing with cancer. A high percentage of uncovered expenses arise from the cost of prescription drugs. Other expenditures that that arise with cancer and are often not covered under regular health policies include special diets, medical equipment, non-prescription medications, and travel. Opting for special insurance cover that addresses all of these needs is now an option.

Cancer insurance is a special health insurance plan designed to cover risks that are associated with the condition. The plan is beneficial in mitigating the expenses incurred for treatment by offering financial support to the policyholders.

Major illnesses like cancer are not covered by most traditional health plans. While no one wants to consider the possibility of developing cancer, if simply avoiding such unpleasant considerations worked as a preventive strategy there would be far less people afflicted with cancer. Cancer is becoming increasingly common among Indians and isn’t solely influenced by genetic and hereditary factors or lifestyle. Depending on the stage of cancer and the type of cancer, treatment can be highly effective, but we are forced to confront our mortality. Cancer therefore doesn’t just take a physical toll, but it also affects the mental well-being of the patient and loved ones. In such situations, learning that your insurance coverage doesn’t cover cancer or doesn’t cover certain areas of the treatment can be enough to send you over the edge. Cancer insurance plans could quite literally be a life saver in some situations and should be purchased not just by people at high risk of cancer.

Individuals can financially prepare themselves with cancer care insurance plans that offer comprehensive coverage against the disease. When you are assured of being able to meet the costs of treating cancer, you have time to come to terms with your condition and how it will affect you and your family, without having to worry about how you will pay your medical bills.

Advantages of cancer care insurance plans

  • Most of these insurance policies provide a lump sum payment to the policyholder when diagnosed with cancer.

  • The premium is waived under certain conditions, such as if it is early stage cancer.

  • In case there are no claims during the year, the sum assured increases by a pre-specified percent.

  • Monthly income for a specified number of years under certain conditions, such as in the event of diagnosis of major cancers.

  • Policyholders can enjoy discounts on the premium amount for policies that are over a certain amount.

  • Cancer care insurance plans provide tax benefits under section 80 D of the Income Tax Act 1961.

Exclusions under cancer care policies

Before availing this kind of insurance coverage it is important that you read the fine print. There are various exclusions whereby policyholders are not eligible for benefits, such as if the cancer develops as a result of:

  • AIDS or sexually transmitted diseases

  • Pre-existing conditions

  • Congenital diseases

Most of us tend to shy away from plans that force us to confront and accept our mortality, but planning for such unfortunate circumstances better helps us overcome or cope with them if and when such situations arise. The cost of cancer treatment and outpatient care is extremely high and can leave most individuals and families saddled with a huge burden of debt. Cancer care insurance plans can help ensure that you are free of any financial worry and can have some peace of mind when you need it most.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.

Further reading:

  1. Lesser Known Facts about a Mediclaim Policy
  2. Commonly Used Terms and Phrases in the Health Insurance Sector

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

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