Out of the many who make financial resolutions for the new year, many wish to be financially independent, some wish to start investing, and many wish to invest more. While you are thinking of making such resolutions this year, think about making a resolution that caters to a different part of your personal finance.
Meaning, securing yourself financially against a critical illness like cancer. One way of doing so is investing in a specialized insurance policy like a cancer cover policy.
A cancer insurance policy provides coverage if a person is ever diagnosed with cancer. It acts as a financial safety net by reducing the out-of-pocket expenses associated with cancer diagnosis and treatments. The insurer’s coverage amount depends upon the stage at which cancer is diagnosed – minor or major.
Therefore, making the resolution to purchase a standalone cancer plan this new year can make all the difference.
Here are some reasons why you must purchase a cancer cover policy:
Table of Contents
1. Increase in Lifestyle Related Cancers
Many lifestyle factors are responsible for increased cancer incidences today. Smoking, increased alcohol consumption, dietary factors, obesity, and environmental pollution are all related to a significant increase in India’s cancer cases.
Therefore, lifestyle-related cancers, such as skin, colorectal, and lung cancers, have increased over the past decade. Although we cannot make ourselves immune to this dreaded disease, making positive lifestyle changes can reduce our cancer risk.
While taking the required precautions to reduce your cancer risk, it is also vital to be financially prepared if the unfortunate incidence does happen. Cancer insurance can act as a financial safety net in such situations by taking care of the financial stress caused due to high treatment costs.
2. You Don’t Have a Financial Safety Net
In case the deadly disease does strike, a lack of proper financial backup can lead you to bankruptcy. Having cancer insurance as your financial backup will cover the treatment cost and make you financially stable. Moreover, it will save you from dipping into your hard-earned savings.
Cancer insurance policies today offer lump-sum payout in the case of minor and major stage detection. This amount can be used in whichever way you like. You can use it for covering your household expenses, travel expenses during the treatment, paying your outstanding bills, etc.
3. Cancer Treatment is Expensive
With the alarming growth of cancer diagnosis, the cost of cancer treatment is also increasing. One chemotherapy session can cost as much as Rs. 90,000, and the number of sessions depends on the severity of cancer. Moreover, even the lowest cancer treatment expenditure can be up to Rs 2.5 lakh and can go up to Rs. 25 lakhs.
Various factors determine the treatment cost, like the stage of diagnosis, duration of treatment, type of hospital, loss of income, and recurrence of the disease. Therefore, cancer policies, especially those who provide ‘waiver of premium’ and ‘income benefit,’ are of much help.
Today, many reputable insurers like Future Generali offer premium waiver benefits (for three years) if the cancer is diagnosed at a minor stage. Further, if the cancer is detected in the major stage, a monthly income is paid a specific number of years. Thus, a cancer policy fully provides the required financial support when a person is undergoing treatment and cannot work.
4. Cancer Insurance Policy Covers Almost all Types of Cancer
Typically, cancer insurance covers almost all types of cancers, except skin cancer. This includes cancers of lung, breast, kidney, stomach, pancreas, and so forth. If any sexually transmitted disease like AIDS or HIV is the cause of cancer, then the claim is not admissible. Also, you cannot avail of cancer insurance in case of a pre-existing condition.
5. Tax Benefits
Just like health insurance, you can avail of tax benefits on your cancer cover policy as well—a deduction up to Rs. 25,000 under Section 80D of the IT Act is allowed. Therefore, buying cancer insurance also allows you to reduce your tax liability every year.
Getting diagnosed with cancer is no less than a nightmare for middle-class individuals. Therefore, given the high cost of cancer treatment and the reasonable premiums at which these policies are available, one should definitely opt for a cancer cover policy at the earliest.