Guarding Against the Unthinkable: A Comprehensive Guide to Cancer Insurance
According to the American Cancer Society, about one in every two males and one in every three females will contract cancer at some point in their lives.
Even with a great medical insurance coverage, the financial burden of cancer treatment can be heavy. If a good fit, cancer insurance can alleviate some of this burden.
Unveiling the Significance of Cancer Insurance
Known as specified-disease insurance in some states, cancer insurance is a supplemental health insurance that can pay for cancer treatments. Unlike traditional insurance policies where the insurance agency sends money directly to a medical provider, policyholders of cancer insurance receive the monetary benefits directly. This money can be used for almost anything; from out-of-pocket medical costs, to meals, travel and lodging during treatment, as well as child care, deductibles and lost wages.
Cancer insurance is designed to supplement a traditional health insurance plan and cannot substitute for a traditional insurance plan.
Navigating Cancer Insurance Basics
In order to be eligible for most cancer insurance policies, applicants must not be diagnosed or treated for cancer, or a condition that predisposes you to cancer (such as HIV, within a certain amount of time specified by the insurance carrier.).
After a diagnosis, a policy holder will receive a specified amount of money. Cancer insurance plan benefits can be paid to the policy holder as either an entire lump sum or a scheduled benefits policy.
A scheduled benefits policy (also known as an indemnity policy) has predetermined benefit amounts which the holder receives with specific cancer treatments, such as surgery, chemotherapy, radiation, bone marrow transplants, etc.
A lump sum policy pays a predetermined amount of money regardless of treatments– lump sum policies can often be added to a scheduled benefits policy.
Both of these types of cancer insurance have set amounts, regardless of the actual cost of treatment. This is why it is essential to also keep a traditional, comprehensive medical insurance policy.
Critical Considerations in Cancer Insurance Selection
When considering cancer insurance it is also important to assess your personal risk profile. If you are biologically predisposed to cancer, sometimes visible in your family medical history, a robust cancer insurance policy may be best for you.
Sorting through and choosing a cancer insurance plan can be daunting, even off putting. Below are a few critical points to take into consideration when looking at cancer insurance policies:
Is the policy a lump sum or scheduled benefits policy?
Can the benefits be used for non-medical expenses during treatment?
Can the benefits be used for a separate condition that is related to cancer?
Does the cancer insurance policy include or exclude the same treatment as your existing, comprehensive health insurance?
Does your comprehensive health insurance have a Coordination of Benefits (COB) clause, stating that it will not cover expenses that another plan does?
Conclusion
Choosing cancer coverage can be an overwhelming and unsettling chore as you consider the possibility of cancer in your own life. We hope this blog has helped you grasp the basics of cancer insurance and provided you with practical, answerable questions to guide your health insurance decisions.
Our experts can help you examine the benefits and coverage of different plans best fit for your unique health needs. Contact us or book an appointment today to make an informed choice and personalize your health insurance.
