Cancer Insurance - Is This a Necessary Coverage?

Patients who have received a disheartening cancer diagnosis already have enough to deal with. There is the emotional turmoil. The question of how this could happen? Why me? What did I do to deserve this? What are my chances to survive? And what will happen to my family?

And of course there are the treatments. Chemotherapy, surgery, nutrition changes, anything to fight the disease for the chance to survive and live a normal life. Most treatments are so grueling they zap the energy out of the patients. But, if a patient gets the cancer diagnosis, shouldn't this patient have access to all treatments available to fight the disease? Shouldn't this patient have a fighting chance to beat it?

In theory, yes, in practice, no. Cancer treatments are expensive. Patients are not only emotionally and physically drained, but also financially. Health insurance policies don't cover every treatment, especially not experimental treatments, no matter how promising they might be. Patients oftentimes find themselves fighting insurance companies for the coverage of the life-saving treatments they so desperately need. And even, if the insurance covers the treatment, patients often use up savings and retirement funds, mortgage their homes and take out loans, and even may have to use their children's college funds, just to pay for the residual costs of the treatments, doctors visits, and hospital stays. After all there are co-pays and co-insurance payments to consider, as well as deductibles and lifetime maximum benefits.

Cancer insurance could be the answer to the financial problems one might face, when getting such a terrible diagnosis. It would act as supplemental insurance for your portion of the medical bills, after your health insurance would have paid its part. Some even help with the costs of experimental treatments, and with transportation and lodging costs to get the treatments, as well as the cost of having nursing assistance in your home. However, consumers need to be aware that not every treatment and/or service may be covered by the supplemental insurance. It is important to look at the individual details of an individual policy, especially under what circumstances it kicks in and what specifically is covered.

Now, you can get two types of supplemental insurance. There is one that would only kick in, if the patient were diagnosed with cancer. The other type covers a wide range of illnesses, including cancer.

Just like the health insurance policies, these supplemental policies vary by insurance company. However, there are some common elements to most of the policies available today.

In regards to the cancer insurance policies, an initial flat amount is usually paid out after the initial diagnosis, which is anywhere between $1,000 to $50,000, depending on the policy. Then a schedule of benefits kicks in with usually fixed payments for specific services. The patient usually has to submit the receipts in order to be reimbursed for the treatments and services covered by the policy. If you get a policy without a maximum payout limit, you might still face daily or monthly limits, but you will continuously have money come in to help pay for the necessary treatments. Unfortunately, related illnesses to the original cancer diagnosis are usually not covered by cancer insurance. This could be something like an infection, diabetes, or pneumonia.

Critical illness policies, which cover a wide range of serious illnesses, including cancer, usually pay out a lump sum. Depending on the policy this can be anywhere from $10,000 to $500,000, if a patient is diagnosed with one of the illnesses covered by the insurance policy. Treatment receipts usually don't have to be submitted. A patient can use the money any way he or she sees fit.

This begs the question which type of supplemental policy you should get, and if you should get one at all. With the rise in medical costs, it is most definitely worth it to check into supplemental insurance. In the long run most of the population will face a critical illness at one point in their life. If you can financially afford it, you should get at least a critical illness policy.

Furthermore, if your family has a history of cancer, and/or your habits put you at a higher risk of developing cancer, you might also want to check into getting cancer insurance. Such insurance will help defray the costs if you should get the dreaded diagnosis. Additionally, you might not have to make the decision between a life-saving treatment and your family's financial future.

If you decide to get either type of policy, please read the fine print and make sure that it is a suitable policy for you and worth the insurance premiums you will have to make. You need to be fully aware about what is covered and when.