You have finally bought a term insurance plan to secure your family's future in case something happens to you. You have also covered the entire family with a comprehensive health plan to take care of their medical expenses. But have you prepared yourself for the worst?

Imagine a life where you are completely dependent on others and are no longer capable of providing financial or emotional support to your family. This is what Ashok Garg and his family went through. Garg was diagnosed with mouth cancer two months after his daughter's wedding. The already debt-ridden family was not prepared for the expensive cancer treatment. The mediclaim policy did not cover the pre-hospitalisation treatment including the chemotherapy sessions which ran into lakhs. His family w ..

A mediclaim policy is limited to hospitalisation expenses while a disease-specific health insurance plan, such as a cancer insurance plan, provides a cover beyond in-patient hospitalisation. But even then, the average health insurance cover of Rs 5 lakh may not always help. Cost of cancer treatment in India can go up to Rs 20 lakh in some cases. Though, it would depend on the type of cancer and the concerned hospital. Unlike other diseases, cancer treatment can take few months to many years. The ..

Critical illness, like cancer, is not only a threat to one's earning capacity but it can also throw you into a debt trap. A healthy lifestyle and preventive health checkups may help you to some extent but it cannot make you completely immune. With our changing lifestyles, increasing use of preservatives, rising air pollution levels are collectively taking us closer to the evil called cancer.


But there is a way to make at least our finances immune to the disease. Looking at the exponential rate of cancer, many insurance companies have come up with cancer insurance policies.

If you think cancer insurance is only for those who are prone to such ailments, you may be wrong. India is likely to have over 17.3 lakh new cases of cancer and over 8.8 lakh deaths by 2020, as per projections by the Indian Council of Medical Research (ICMR). Among females, breast cancer is the most common, while mouth cancer is found more among males, according to a 2016 study by the medical research body.

The cancer survival rate in India is among the lowest in the world and this is mainly due to the fact that early diagnosis and optimal treatment is still a distant reality for majority of us. Cancer diagnosed at an early stage may not always kill but advanced medical facilities will surely burn a hole in your pocket. More so because of the rarity of targeted cancer drugs.

This makes it more than necessary to buy dedicated insurance plans for life-threatening diseases like cancer. Term insurance plans launched recently offer riders which would mean the premium would be waived off in case the insured is diagnosed with a critical illness disease but the cover will continue till death.

Why choose critical illness plans

Most people don't think it is important to have cancer insurance because they are under the assumption that their existing health insurance will be sufficient. But a comprehensive health insurance policy may not be able to cover the high cost burden of cancer treatment. A cancer insurance policy is a step ahead and provides high cover for a relatively low premium.

As opposed to a mediclaim or any reimbursement plan, cancer plans provide the insurance amount on diagnosis of illness irrespective of the actual amount spent on treatment to help you recover without worrying too much about the bills.

Cancer-dedicated plans can be a substitute for the loss of income if you need to take a break from your work because of the illness. Some of the cancer policies are:

•     ICICI Pru Heart/Cancer Protect
•     SBI Life Sampoorn Cancer Suraksha
•     LIC Cancer Cover
•     Aegon Religare iCancer Insurance Plan
•     HDFC Life Cancer Care

Benefits of a cancer-only plan

Cancer insurance is cheaper than you may think. ICICI Pru Heart/Cancer Protect offers Rs 20 lakh cancer insurance cover for a 30-year-old male at a monthly premium of Rs 309 for 40 years. The same coverage for a 30-year-old female costs about Rs 390 per month. Which means an extensive coverage of Rs 20 lakh for a disease like cancer at below Rs 3,500 annually. If you take an additional cover of Rs 10 lakh for heart under the same plan, the premium will just go up to Rs 688 on a monthly basis.  ..

Unlike health insurance plans, cancer-only plans come without sub-limits which means the entire cover is paid out on detection. Also, there is no need for hospitalisation for getting the claim. This eliminates the headache of applying for cashless claim or running after the insurer for reimbursement if you have paid from your pocket.

Deepak Yohannan, CEO, MyInsuranceClub says, "Once your basic health insurance policy is in place, you should look at buying critical illness plans. In fact, such plans come in handy due to its lump sum payout feature on diagnosis of severe illnesses like cancer."

In case of a cancer-only plan, you get the lump sum benefit equal to the sum insured, which can pay for the medication, post-treatment and helps you recover while you are away from work. You can also decide which hospital you want to get treated in. Since such treatments take time, you can get a long term cover of up to 40 years.


"Since cancer treatments take longer than less severe illnesses, it can result in loss of income. Cancer-only plans can also work as income replacement policies. Since the entire insurance amount may not be exhausted on treatment, you can also pay off your debt, if any while you recuperate," adds Yohannan.

Things to consider while buying a cancer plan

•     Pre-existing diseases will not be covered
•     Increase in cover (if a claim is not made) also called no claim bonus
•     Payout on both minor and major stages of cancer
•     Discounts if any (family/spouse discount, online discount, existing customer discount)

All cancer insurance plans are specialised health insurance and have tax benefit of up to Rs 25,000 for individuals below the age of 60 years and up to Rs 30,000 for senior citizens under Section 80D. Most of the plans are available online. Online cancer plans not only offer discounts but is a great way to save time. These plans can be brought directly from the insurer's website in just 10 minutes.


A cancer plan will not replace your existing health insurance but will compliment it perfectly to ensure that both your hospitalisation and out of hospital expenses, which are high in case of cancer, are taken care of.

*The quotes are indicative and TIL bears no legal liability for the calculation.