Cancer still ranks as one of the deadliest diseases in the world with its survival ratio being far less as compared to the proportion of developments in medical science. The harsh reality of cancer medical treatments is that they are exorbitantly priced, which a person of average income may not be able to afford. This is where your health insurance plans kick in to offer you the financial support you need in your stressful times. Recollecting the times when either your friend or family member may have faced this unpleasant situation, cancer insurance may have helped in reducing the mental and financial stress associated with the ailment.
A regular health insurance plan may not provide the same benefit as that of a specialized plan like cancer insurance. Most people will be left wondering if they need to buy cancer insurance if they already have regular health insurance? The answer is definitely yes! Your regular health insurance plans may not cover other ancillary treatment costs vital for treatment. You may have to face limitations like a co-payment clause or avail treatment at a network hospital instead of your choice.
When you avail health insurance with specific cover for cancer, you get a lump sum payout. Most insurers offer a 50% of the sum insured on early detection of cancer or the entire sum assured in your advanced stage of the ailment. This amount is over and above the already claimed sum in the early detection stage. The premiums too are affordable, considering the coverage they offer. Moreover, you can avail deductions for mediclaim premiums under section 80D of the Income Tax Act, 1961.
Now that you understand the importance of buying cancer insurance let us look at the cornerstones you need to keep in mind while selecting a cancer insurance plan-
Ratio Of Claims Settlement
This is a vital statistic that you need to check when you compare health insurance plans. Understanding this number will help in knowing how many claims have been paid as a proportion of claims filed. It is better to select an insurer which has a higher claim settlement ratio.
Solvency Ratio of the Insurer
Solvency ratio defines whether the insurer is capable of settling your claim if the need arises. As per the Insurance Regulatory and Development Authority of India (IRDAI) Rules, insurance companies are required to maintain a solvency ratio of at least 1.5. Make sure you select an insurer that has an adequate solvency ratio.
Pay Out Terms
While availing cancer insurance, you need to compare health insurance plans that pay even on the diagnosis of minor stage of the disease. It is crucial you get appropriate medical assistance right from the start for which a financial backing is needed. Verify across various insurers whether they offer a certain percentage of your sum insured even for initial treatment expenses.
No Claim Benefits
Cancer is seen to affect people at large, but not all those who avail cancer insurance get affected by cancer. So to avail a policy that helps you carry forward benefits for making no claims during the policy year is important. This helps in increasing the cover for yourself and eventually offering extended benefits.
A key point to note is that there is no death or maturity benefit in health insurance on completion of your policy tenure. Buying cancer insurance can help create a backup, both to avoid mental as well as financial stress. Make sure you purchase cancer insurance if you predict the risk of developing cancer either through environmental factors or any other reason. Stay protected!