Should I Purchase Cancer Insurance?

4007496605_d7d83870b4_zYou can purchase insurance for just about anything but did you know that you can purchase cancer insurance? The real question that all consumers ask is, how much insurance is too much and should we try to insure against everything? Is insuring against one certain disease worth the money and if it is, should you insure against other diseases too?

How it Works

The cost of healthcare continues to rise in the United States. If you were sick or injured, those costs would soar up in to the hundreds of thousands of dollars or even higher.

Now, even your health insurance company is having trouble keeping up with the rising costs and because of that, insurance policies are becoming more restrictive. Deductibles are rising, copays for office visits are going up, and all of these costs may create a gap that leaves the patient responsible for a substantial cost before insurance takes over the payments. Cancer insurance can provide coverage for that gap and many other expenses that traditional health insurance won’t cover.

If you need care outside of your health insurer’s network of providers, transportation to and from hospitals or treatment centers, or you qualify for an experimental treatment for late stage cancer, cancer insurance may help with those costs.

Policy Details

There are three common types of cancer insurance: First, expense-incurred policies pay the insured person a percentage of expenses for all covered treatments until they reach the policy’s maximum amount. The second type, the indemnity policy, covers expenses for any approved treatments. It places a fixed dollar limit on each treatment regardless of the cost of that care.

Finally, the lump sum plan pays you the amount you’re insured for if you are diagnosed with cancer. If you had a $30,000 policy, you would get a check for $30,000 to be used for anything from medical treatments to a vacation. The company won’t ask you to justify any of the costs.

For a 35 year old in good health, the premiums for insurance may be around $20 per month and although family history of cancer isn’t largely factored in to the premium, like any insurance policy, the company will want to know about your health. If you’ve had cancer in the last five to ten years, you’re likely not eligible for this insurance.

Is it right for me?

Men in the United States have slightly less than a one in two chance of getting cancer in their lifetime and women have slightly more than a one in three chance. This is largely because of the numerous types of cancers but is it a good idea? Part of the answer lies in the quality of your current health insurance. Since these policies are typically offered as an add-on to your company health insurance, first ask about it with your benefits department. If they don’t offer it you can find it through numerous private insurers. Since the insurance is a relatively low cost policy, insuring against a disease that has such a high incidence rate may be a good idea especially if you have a large amount of risk factors.

Bottom Line

Cancer insurance, like any other policy, is best considered with the help of a trusted insurance agent who can assist you in researching policies and make an informed decision. Just because a certain insurance product is offered doesn’t mean you should purchase it.