Mr. Ramesh Patel, a 45-year old salaried professional, lost his parents to cancer. Fearing the worst, he decided to purchase a cancer health plan. 12 years into the policy period, Mr. Ramesh, unfortunately, contracted the deadly disease. Though he had to undergo a great deal of emotional turmoil, he did not have to worry about meeting his medical expenses. His insurer provided the sum assured amount, thereby offering him relief from any financial worry.
Cancer is one of the most deadly diseases in the world. According to the National Institute of Cancer Prevention and Research (NICPR), around 2.5 million people live with this disease in India. It is estimated that more than seven lakh fresh cancer victims are registered each year in the country.
About cancer insurance policy
Cancer can strike anyone at any given time. Therefore, it is necessary to remain financially protected against this disease at all times. Besides, the cost of medical inflation is increasing at a very rapid rate. In order to financially protect yourself against this disease, you may consider purchasing a cancer insurance policy.
Such an insurance plan reduces out-of-pocket expenses towards diagnosis and cancer treatment. Besides, it also covers numerous cancer-related expenses, such as chemotherapy, radiation, blood transfusions, related medicines, and hospitalization costs, among others.
There are numerous reasons for purchasing a cancer policy. Following are five major advantages of doing so.
- Offers protection against various stages of cancer
Numerous health insurance providers offer coverage against all stages of cancer. This includes early stages of cancer as well as advanced stages of cancer. You may, therefore, avail of financial security, as all your cancer-related expenses will be covered at any given stage.
- Provides the option of lump sum or monthly payout
Upon diagnosis of cancer, you are entitled to receive the sum assured amount. You may make use of this benefit either through a lump sum payment or by opting for regular payouts. Such an option acts as income replacement, especially if you are the breadwinner of the family. Most insurance providers offer a regular payout as a certain percentage of the sum assured amount. The good news is that this income benefit is payable even after the policy expires. In case of an unfortunate death of the policyholder, the nominee may avail of the income benefit.
- Offers protection in case cancer runs in your family
In case you have a family history of cancer, purchasing a cancer insurance plan is a highly recommended option. It financially protects you against the risk of being diagnosed with cancer at any point in your life. However, it is important to note that pre-existing cancer conditions are not generally covered by most cancer health insurance plans. Hence, you may invest in such a policy at the earliest.
- Provides waiver of premium benefit
Some insurance providers offer premium waiver benefit upon diagnosis of cancer during the early stage. Beginning from the next due date, the premium is then waived off. However, you may continue to enjoy the benefit of your cancer health insurance until the policy terminates.
- Provides tax benefits
Just like any other type of health insurance policy, a cancer health plan provides tax benefits of health insurance. You may reduce your tax liability by seeking deduction on the premium paid towards your cancer policy. You may avail a deduction of up to INR 25000 as per Section 80D of the Income Tax Act, 1961. Senior citizens may enjoy a higher limit of up to INR 50000 according to the latest Union Budget.
Due to the aforementioned benefits, it is advisable to purchase insurance for cancer patients. It acts as huge financial aid as it offers a high cover at an affordable rate.