4 Cancer Insurance Options That Can Work For You

I often discuss cancer and it's impact on a family. Yes, there is the toll it takes physically as someone undergoes treatments, and despite all the advances in research on the disease, many continue to die from various types of cancer. 

There is also a huge financial impact on survivors and their families. Cancer treatments are expensive and even though health insurance picks up a large portion of the tab, there are still some huge gaps not covered by major medical policies. Deductibles, co-pays, travel, and other out-of-pocket costs can wipe out a family's finances. Not to mention the lack of income if the cancer patient is the breadwinner of the family.

As previously discussed on this blog, there are several cancer insurance plans available on the market. There are also non-traditional plans that can also help cover the expenses related to having cancer. These plans pay directly to the insured, not the hospital or the doctor. Here are a few. 

1. Cancer treatment plans. These are the insurance plans that most people think of when considering cancer insurance. They generally pay a structured set of benefits for various treatments. For example, if someone is hospitalized for cancer, the policy may pay a set amount of money, say $100 per night. There may be another benefit if surgery is necessary. Wigs (for hair loss as a result of chemotherapy) may even have a benefit. 

Many of these types of plans are offered through "worksite" companies, which means you can get them through your work if your employer agrees to deduct the premiums from your paycheck. If you are self-employed or a business owner, you can get an individual plan and the costs is just about the same. 

A cancer treatment plan pays the way it sounds. As you are receiving treatments, you can remit the receipts to the insurance company to continue receiving benefits. As cancer treatments are not a "one and done" scenario, you could continue receiving benefits for months. With that in mind, a cancer treatment plan has the potential to pay out a lot of money, but it can also be difficult for someone who is seriously ill to keep up with the paperwork. If you would like to run your own quote on one of these plans click here. 

2. Lump sum plans. Unlike the cancer treatment plan, these plans pay a lump sum of money when someone is diagnosed with an invasive cancer. There's no need to save receipts and you can choose the amount you want, along with your premium amounts. Many people prefer these plans for their simplicity. 

One of our lump sum insurance carriers has included genomic testing with their plan. Your doctors can send a biopsy sample to a laboratory where the sample is examined. The lab will in turn contact the doctors and give them suggestions as to how to treat the cancer. All of that is included at no extra charge and can help dramatically. If you would like to see a short video on how it works, click here. 

3. Critical illness insurance. Critical illness plans generally cover several specifically named illnesses or health events, such as heart attacks, strokes, kidney failure and major organ transplants. Sometimes cancer will be included on the list. These plans are paid in the same way as the lump sum plans in that you choose a face amount when you apply. 

4. Life insurance will critical illness riders. Life insurance carriers are starting to offer riders that cover critical illness (and chronic illness) into their policies, and many are included at no extra charge. For younger people this can be great as the premiums are low. I always emphasize to my clients that they are buying life insurance, first and foremost, so the underwriting process can be an issue. 

This isn't the cheapest option as most carriers only include the riders on their permanent plans. However, we have found one carrier that offers them on their term policies. 

On all of these plans be aware that there may be some underwriting involved. If you have had an internal cancer in the last few years you could be denied coverage. Also, skin cancer isn't always covered. 

If you have questions about any of these options let us know. Our website has contact forms and a page where you can book a phone appointment that works on your schedule. In the meantime, please stay healthy!

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog! Thanks!