Health Insurance: How To Protect Yourself From Cancer Treatment Expenses

As cancer cases continue to rise globally, with over a million new cases reported annually in India, specialized insurance plans have become an essential component of financial protection. According to the Indian Council of Medical Research-National Cancer Registry Programme (ICMR-NCRP), the number of cancer cases in the country is projected to go up from 14.6 lakh in 2022 to 15.7 lakh in 2025. Cancer treatment involves different kinds of medical procedures such as surgery, chemotherapy, radiation therapy, and medications. Such treatment involves significant expenses such as hospital bills, doctor's fees, diagnostic tests, and prescription drugs. 

According to experts, in preventing and managing cancer, early detection plays a vital part. Also, the cost of curing cancer can run up to a few lakhs, and a health insurance policy with a small coverage might not be adequate for its treatment. Hence, comprehensive protection against cancer needs to be planned through health insurance. 

Cancer insurance typically falls into two categories: standalone cancer insurance plans and critical illness riders. Standalone plans are designed to provide comprehensive coverage across all stages of the disease, offering lump sum payouts upon diagnosis, covering hospitalization, and treatment expenses such as chemotherapy, and often waiving future premiums in the event of early-stage diagnosis. Premiums for these plans generally range from as low as Rs 500 to Rs 5,000 annually, depending on factors like the sum insured, age, and health status, with coverage ranging from Rs 10 lakh to several crores.

Critical Illness Riders: On the other hand, critical illness riders can be added to standard health insurance policies, offering lump sum payments that can be used flexibly, such as covering treatment costs or other financial needs. “While these riders may not provide the in-depth coverage of a dedicated cancer insurance plan, they are beneficial for those seeking broader protection that covers a range of critical illnesses, including cancer. Premiums for critical illness riders can start from Rs 300 to Rs 2,000 annually, depending on coverage limits and health conditions, though they may come with certain exclusions for pre-existing conditions or specific stages of cancer,” says Narendra Bharindwal, vice president, Insurance Brokers Association of India (IBAI). 

When deciding between these options, it is important to consider individual risk factors such as family history or personal health concerns. “A standalone cancer policy offers more targeted protection, particularly for those at higher risk, often covering advanced treatments and cashless options at select hospitals. However, a critical illness rider may be a suitable alternative for those looking for broader coverage but should not be relied upon solely if comprehensive cancer treatment coverage is needed,” adds Bharindwal. 

The premium for cancer insurance varies based on factors like age, health status, and coverage amount. Younger individuals and those in good health typically benefit from lower premiums, while older individuals or those with pre-existing conditions may face higher costs. Ultimately, choosing the right plan comes down to one's financial situation and health profile, but given the rising medical expenses, investing in a specialized cancer insurance policy can offer invaluable financial security.