Out of the many who make financial resolutions for the new year, a lot wish to be financially independent, some wish to start investing, and many wish to invest more. While you are thinking of making such resolutions this year, also think about making a resolution that caters to a different part of your personal finance.
Meaning, securing yourself financially against a critical illness like cancer. One way of doing so is investing in a specialized insurance policy like a cancer cover policy.
A cancer insurance policy provides coverage if a person is ever diagnosed with cancer. It acts as a financial safety net by reducing the out-of-pocket expenses associated with cancer diagnosis and treatments. The coverage amount paid by the insurer depends upon the stage at which cancer is diagnosed – minor or major.
Therefore, making the resolution to purchase a standalone cancer plan this new year can make all the difference.
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Here are some reasons why you must purchase a cancer cover policy:
1. Increase in Lifestyle Related Cancers
Many lifestyle factors are responsible for the increased cancer incidences today. Smoking, increased consumption of alcohol, dietary factors, obesity, environment pollution, are all related to a significant increase in cancer cases in India.
Therefore, lifestyle-related cancers, such as skin, colorectal, and lung cancers, have increased over the past decade. Although we cannot make ourselves immune against this dreaded disease, making positive lifestyle changes can help reduce our cancer risk.
While taking the required precautions to reduce your cancer risk, it is also vital to be financially prepared if the unfortunate incidence does happen. Cancer insurance can act as a financial safety net in such situations by taking care of the financial stress caused due to high treatment costs.
2. You Don’t Have a Financial Safety Net
In case the deadly disease does strikes, lack of proper financial backup can lead you to bankruptcy. Having cancer insurance as your financial backup will not only cover the treatment cost but also make you financially stable. Moreover, it will save you from dipping into your hard-earned savings.
Cancer insurance policies today offer lump-sum payout in case of minor and major stage detection. This amount can be used in whichever way you like. You can use it for covering your household expenses, travel expenses during the treatment, paying your outstanding bills etc.
3. Cancer Treatment is Expensive
With the alarming growth of cancer diagnosis, the cost of cancer treatment is also increasing. One chemotherapy session can cost as much as Rs. 90,000 and the number of sessions depend on the severity of cancer. Moreover, even the lowest expenditure for cancer treatment can be up to Rs 2.5 lakh and can go up to Rs. 25 lakhs.
Various factors determine the treatment cost like the stage of diagnosis, duration of treatment, type of hospital, loss of income, and recurrence of the disease. Therefore, cancer policies, especially the ones which provide ‘waiver of premium’ and ‘income benefit’ are of much help.
Today, many reputable insurers like Future Generali offer premium waiver benefit (for three years) if the cancer is diagnosed at a minor stage. Further, if the cancer is detected in the major stage, a monthly income is paid for a specific number of years. Thus, a cancer policy fully provides the required financial support when a person is undergoing treatment and isn’t able to work.
4. Cancer Insurance Policy Covers Almost all Types of Cancer
Typically, cancer insurance covers almost all types of cancers except skin cancer. This includes cancers of lung, breast, kidney, stomach, pancreas and so forth. But, if any sexually transmitted disease like AIDS or HIV is the cause of cancer, then the claim is not admissible. Also, you cannot avail cancer insurance in case of a pre-existing condition.
5. Tax Benefits
Just like health insurance, you can avail tax benefits on your cancer cover policy as well. A deduction up to Rs. 25,000 under Section 80D of the IT Act is allowed. Therefore, buying cancer insurance also allows you to reduce your tax liability every year.
Getting diagnosed with cancer is no less than a nightmare for middle-class individuals. Therefore, given the high cost of cancer treatment and the reasonable premiums at which these policies are available, one should definitely opt for a cancer cover policy at the earliest.