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Cancer is a severe disease that can wreck homes. Life insurance plans with cancer coverage offer security to policyholders and their loved ones. Explore how life insurance matters for cancer patients and survivors.
Cancer is a critical disease that can cause a family severe physical and emotional stress, not only to the patient but to their family as well. Moreover, the disease cannot be cured in a day; and may require months of medication, hospitalisation, and treatments. Such extended courses of treatment and recuperation can also cause financial stress to families dealing with this life-threatening disease.
But instead of burning their savings on cancer treatment, individuals can opt for a life insurance policy for cancer patients. Here in this blog, we will understand how a life insurance policy is suitable for individuals at risk of cancer.
Table of Content
Can Cancer Patients Buy a Life Insurance Policy?
A life insurance plan serves as a safeguard in uncertain times. Individuals can buy life insurance policies to provide financial security to their loved ones if something happens to them in future.
However, a cancer patient may worry if they can buy life insurance or not. Here’s the answer. A person already diagnosed with cancer may find it difficult to buy a life insurance policy. Even if an insurer provides them with a term plan, the premium may be too high and they may have to pass an extended waiting period prescribed by the insurer to avail of the policy benefits.
Here, you can buy specific plans and insurance riders# that cover critical illnesses like cancer. Critical illness cover provides coverage for a range of critical illnesses, including cancer. Moreover, with the right policy term and coverage, you can buy a critical illness cover for a reasonable premium.
To avoid being devoid of financial support in case you are diagnosed with a severe health condition like cancer, you can buy a life insurance policy when you are healthy. God forbid, if you are diagnosed with cancer during the policy term, your life insurance plan will still provide you coverage. This is especially useful for people who have a history of cancer in their family or any of their family members have been recently diagnosed with the disease.
However, it is essential to understand here that you must never hide your medical condition from your insurer. The insurer will conduct a detailed analysis of your medical condition and medical history while clearing your claim, and if it is found that you hid such critical information at the time of policy purchase, your claim will be denied.
How Does Life Insurance Work for Cancer Patients?
Due to its nature and type, cancer treatment varies from individual to individual. The cancer treatment procedure takes a lot of time and can seriously put a hole in an individual's savings. In such a case, a life insurance plan is a financial security. Life insurance for cancer patients works in two ways:
Life Insurance Before Cancer Diagnosis
Individuals can buy a life insurance policy when fit and healthy to protect their financial assets during unforeseen events. With critical illness cover riders#, individuals can protect themselves from diseases like cancer in the long run.
Cancer can be genetic, and taking out a life insurance policy seems a reasonable option if someone in your family has cancer. If the policyholder is diagnosed with a critical illness like cancer during the policy tenure, the life insurance policy will provide coverage for the treatment per the policy terms. However, mentioning medical or existing conditions is crucial when buying out any insurance plans.
Life Insurance After Cancer Diagnosis
As stated above, it may not be possible for a person to buy a life insurance policy after being diagnosed with cancer. However, if you already have an existing life insurance plan, you can add a critical illness cover to it. The critical illness cover not only helps you with the mounting costs of medical terms for cancer but also provides you with tax* benefits.
Does Life Insurance Cover Death Due to Cancer?
By adding a critical illness cover to their life insurance policy, individuals can get coverage against death due to cancer. If the individual dies due to cancer, the policy will provide a sum assured to their beneficiaries as per the policy terms.
Benefits of Life Insurance for a Cancer Patient
Having life insurance plans offers many benefits other than financial protection. Let us understand in detail about benefits of life insurance for cancer sufferers.
Financial security - A primary motive for buying a life insurance policy is financial security during an emergency. With life insurance policies for cancer patients, individuals can receive a lump sum at diagnosis. This way, they do not have to worry about the money, and can focus on getting better.
Comprehensive Treatment Coverage - Another benefit individuals will get is comprehensive coverage, from medical screening to treatment at network hospitals based on the policy.
Tax Benefits - Another reason to take out life insurance for cancer patients is tax* benefits under ITA, 1961. Under Section 10(10D), life insurance death benefits granted to the beneficiaries are exempted.
Waiver on Premiums - Most insurance providers offer the benefit of a waiver on premiums with their add-ons and riders#. In that case, a relaxation on the premium will be offered to policyholders after being diagnosed with cancer.
Tips for Choosing the Best Life Insurance with Cancer Coverage
Choosing life insurance with cancer coverage can be challenging if you do not know what to look for. Here are some points to consider while buying any life insurance policy:
Always go with a life insurance plan that offers coverage against various types of cancer at different stages. Even if the cancer is at the initial stage, the insurance plan will provide the benefit.
Further, remember that cancer treatment is vast, with multiple tests and procedures like radiation, chemotherapy, etc. Therefore, the plan should provide comprehensive coverage.
Moreover, go with a life insurance plan that can provide coverage after 65 years, or at least the policy is renewable after 65 years of age.
Besides this, the claim settlement ratio is another thing to check. A reputable and reliable life insurance provider has a high claim settlement ratio, which means they settle claims quickly and transparently for policyholders.
Another thing to check before picking life insurance plans is the policy terms and conditions. It is best to check the fine print and know all about exclusion to avoid mistakes.
Lastly, riders# are another essential thing that helps in maximising policy coverage. Adding the critical illness rider# can be extremely useful for cancer patients. Therefore, ensure your insurer provides this rider# along with life insurance.
Conclusion
Cancer is a critical illness that can be very stressful to deal with if you do not have any financial protection. With a life insurance policy, individuals secure treatment plans in their time of need and offer security to their families. Most importantly, it gives peace of mind to individuals and their families; it is best to thoroughly read and understand the policy condition before buying it.
