How Does Insurance Coverage Work for Cancer?

Life Insurance With Cancer

It’s easy to convince yourself that you’ll never get cancer. However, more people are being diagnosed with this disease, resulting in not only physical and emotional strain but financial stress as well. According to the World Health Organization, about 1,56,775 Bangladeshis are diagnosed with cancer every year. Having an insurance plan which covers cancer reduces the financial burden that comes with this disease.

Insurance Coverage for Cancer

What is Insurance Coverage for Cancer?

Insurance coverage for Cancer is a health insurance plan designed to provide financial support to policyholders who are diagnosed with this disease. Specific cancer insurance plans cover costs associated with the condition including hospitalization, chemotherapy and radiation treatment, and surgery.

Why do I need Cancer Insurance? Who is it for?

Anyone can be diagnosed with get cancer making it one of the most unpredictable diseases facing everyone. It can strike at any time and can be deadly. Treating cancer is expensive, putting immense financial strain both on yourself as the patient and your loved ones caring for you.

With the cost of cancer treatment rising every year, financing your medical and non-medical bills can become stressful. Cancer insurance releases you and your family from the financial burden that comes with a diagnosis of this disease.

For people who want additional financial protection on their existing health plan, cancer insurance covers expenses not covered by their medical policy. This type of insurance can cover expenses such as co-payments, travel costs to the treatment facility, hospitalization cost and everyday living expenditures.

Does Life Insurance Cover Cancer?

While life insurance policies differ between insurers, a healthy individual may buy this type of plan that covers death associated with cancer. However, cancer survivors may not be eligible for this coverage. In this case, it would be recommended to purchase life insurance with critical illness for the best cancer cover options.

For policyholders with a life insurance plan who are diagnosed during the tenure of the policy, they can receive a lump sum payout if terms dictate this inclusion.

Benefits of Insurance Coverage for Cancer

Long-term Coverage

Cancer insurance plan provides coverage until the insured age is 80 years. Such long-term coverage acts like a solid protection plan for families in Bangladesh.

Major Critical Illness Coverage

If the insured is diagnosed or has undergone surgery with any of the covered 34 major critical illnesses including cancer during the term of this policy, 100% of Face Amount (FA), less the amount paid or payable under minor critical illness will be paid.

Death Coverage

In case of the unfortunate demise of the insured, 100% Face Amount less any amount paid or payable under minor critical illness will be paid. Additional benefit equivalent to 25% of Face Amount or BDT 500,000 whichever is lower, will be paid if death occurs due to Dengue Hemorrhagic Fever.

Maturity Benefit

If the insured survives up to 80 years, 100% of the Face Amount, less any amount paid or payable under minor critical illness will be paid as maturity value and the policy will be terminated.

Grace Period

A grace period of Thirty-One (31) days from its due date will be granted for the payment of each premium falling due after the first premium, during the premium payment period. If the loss occurs within the grace period, any premium then due and unpaid will be deducted in the settlement of this policy.

Tax Benefits

Policyholders will benefit from tax benefits on paid premiums as stipulated by Bangladesh Income Tax Ordinance Act 1984. Usually, an insured individual is eligible for up to 5% of the income tax rebate. You may consult with your tax advisor for details.  

How to choose Cancer Insurance plans

Claim Settlement Ratio

Finding out the insurance company’s claim settlement ratio tells you how efficient they are in settling claims. The higher the ratio, the better the insurer.

Solvency Ratio

The solvency ratio determines whether an insurance company is financially able to settle your cancer insurance claims when necessary. The lowest acceptable solvency ratio is 1.5.

Pay-Out on Minor Conditions

Getting an insurance plan that benefits both minor and major cancer conditions is important for overall coverage.

Affordable Premium

Opting for a cancer plan with an affordable premium means you can keep the policy running for as long as you need it.

When Should You Buy Cancer Insurance Plan?

Family History of Cancer

Having a family history of cancer could increase your chances of getting the disease. Planning ahead with an insurance plan will protect in the eventuality of being diagnosed with cancer.

Higher Risk of Developing Cancer Due to Environmental or Other Reasons

Exposure to certain chemicals both at home and at your workplace could increase your cancer risk. UV radiation, exposure to tobacco smoke, poor air quality, and polluted or untreated drinking water are other risk factors.

You do Not Have Adequate Savings to Pay Large Medical Bills

Not everyone is fortunate enough to have adequate savings to put towards paying large medical bills. Having a cancer insurance plan fills in the financial gaps when paying for treatment and other costs associated with this disease.

Your Regular Health Insurance Policy Does Not Have Sufficient Coverage

Cancer treatment could run into thousands of BDT and your health insurance policy may not be sufficient. Additional expenses can be covered with a cancer insurance plan.

You Are the Only Earning Member

If you’re the only breadwinner in the household, covering your cancer treatment costs will become a struggle if you have to stop working after diagnosis. A cancer insurance plan will protect you financially when your earnings stop.

Exclusions of a Cancer Insurance Plan

Any Kind of Cancer Directly or Indirectly Caused By Or Contributed to By Sexually Transmitted Diseases, HIV, or AIDS

Most insurers won’t include sexually transmitted diseases in their policies due to treatment expanding for a lifetime, making it very expensive.

Cancer Resulting from Any Congenital Condition Or Pre-Existing Conditions

If you develop any form of cancer due to congenital or other pre-existing conditions, the insurance policies do not provide coverage. In addition, the insurance holder must wait a certain period before he/she can submit any claim

Cancer Resulting From Biological, Nuclear, or Chemical Contamination

You’re not eligible for cancer coverage if the diagnosis is because of biological, chemical, or nuclear contamination.

Any Cancer Caused Due to Contact with Radiation or Radioactivity from Any Non-Diagnostic or Therapeutic Source

Policyholders won’t be covered in this case of cancer diagnosis linked to radiation or radioactivity caused by non-diagnosis or therapeutic sources.

FAQs – Cancer Insurance Policy

I already have a health insurance/mediclaim plan. Why do I need a specialized cancer insurance cover?

Complete cancer treatment costs, co-payments, and hospitalization bills may not be fully covered by your health insurance policy or Mediclaim plan. A specialized cancer insurance cover factors in these shortfalls and are designed to payout a lump sum to financially protect you against these limitations.

Are cancer insurance policies worth it?

Cancer is an unpredictable disease that’s becoming more prevalent worldwide. Treatment costs could use up all your life savings leaving you and your family with a financial burden. Cancer insurance policies protect you from this eventuality while giving you tax benefits on paid premiums.

Can cancer patients get cancer insurance after the diagnosis?

No, if you’re being diagnosed with cancer, you will not be eligible to purchase an insurance policy for this disease.

Are cancer insurance policies taxable?

As per the Income-tax Ordinance Act 1984, an insured person will receive up to 15% income tax rebate with insurance benefits (it is treated as an investment). It is always advisable to consult with a professional income tax practitioner to know the exact rebate amount you may avail with your existing insurance plan(s).

Are there any network hospitals that the company has tied up with? Where can I get the cancer treatment? What is the estimated cost for cancer treatment?

Policyholders aren’t restricted to any network hospitals and are able to choose where they want treatment.

Can I cover my spouse with the same cancer insurance policy?

Yes, you can cover your spouse with the same cancer insurance policy. Furthermore, the coverage remains independent from each individual with each being allowed to determine what coverage amount they want.

Does the family get any of the sum assured upon the policholder’s death?

Yes, the family will get a lump sum payout of the sum assured upon the death of the policyholder.

How long does it take to get the reimbursement?

When you produce evidence of your cancer diagnosis from your doctor such as a medical certificate, reimbursement is immediate. You don’t have to pay any bills beforehand to make a claim for your payout.

How does this cancer insurance policy payout the coverage?

The insurer pays out the coverage in multiple stages in different amounts. The initial diagnosis stage is covered by 25 percent of the cover amount. If the cancer reaches advanced stage, 75 percent is paid out and in the case of diagnosis being during the advanced stage, 100 percent is paid out.

Is chemotherapy covered by cancer insurance plans?

The cost of chemotherapy treatment is covered by all cancer insurance plans.

Can I buy cancer insurance after my cancer treatment?

Most insurance companies don’t allow you to buy cancer insurance once you’ve been diagnosed with the disease or after the cancer treatment. However, purchasing a critical illness insurance policy will cover you in the instance of getting cancer.

Is radiation covered by cancer insurance?

Yes, all cancer insurance plans will cover radiation treatment for this disease.

Will cancer insurance cover my treatment if I was diagnosed with cancer before buying the policy?

No, if you are diagnosed with cancer before purchasing the policy it will not cover the treatment cost.

Final Thoughts

Buying a cancer insurance plan is a good idea if you want to financially protect yourself and your family if you ever get diagnosed with this disease which will inevitably lead to paying huge costs for treatments. Being aware of the benefits and the exclusion of a policy is very important for you to make an informed decision on which policy to buy.