For example, a typical health insurance plan may cover the costs of hospitalization, surgeries, radiation therapy, and other medical treatments related to cancer. "However, it's important to carefully review the policy terms and conditions, including the list of covered treatments and exclusions, before purchasing a health insurance plan. Some health insurance plans may have limitations or exclusions for certain cancer treatments, and some pre-existing conditions may not be covered immediately," says Naidu. Hence, it is also important to consider the sum insured, the maximum amount the insurance company will pay for your medical expenses in a policy year. Choosing a health insurance plan with a higher sum insured will help ensure that you have adequate financial protection in the event of a cancer diagnosis.