Do I Need Cancer Insurance?

It’s important to have a health insurance policy already in place when you have cancer, but how much does your health insurance policy cover when it comes to cancer costs? How do you know if you need to start looking into cancer specific insurance policies?

Let’s Start With the Basics…

When you have cancer, the best thing you can do is have a health insurance policy in place that can help cover every necessary cancer related treatment cost with no gaps in coverage.¹ If you have a health insurance policy that covers all the necessary cancer costs you or your family member may encounter when fighting cancer, then no – you likely do not need to turn to a cancer specific policy. However, while health insurance policies like that exist, not every American has a policy in place that covers every necessary cancer cost with no gaps in coverage.

In the event that your health insurance coverage does not cover all of your cancer related costs, it’s important you immediately start looking into a critical illness or cancer insurance policy. However, if you have already been diagnosed with cancer, you may not be eligible for a cancer specific critical illness policy.

Critical Illness Insurance: Purchasing a Cancer Policy

If your current health insurance policy is not sufficient in covering all the necessary costs associated with cancer, it may be time to consider a critical illness insurance policy – the sooner the better.

Critical illness insurance is something meant to be used in addition to a health insurance policy, and is designed to offer additional money in the event of a critical or catastrophic illness, like stroke, heart attack, and cancer – but only if the policy is put in place before the critical illness takes place.²

Critical illness insurance comes in all shapes and sizes, sometimes offering policies designed specifically for one type of medical emergency, like cancer. However, the key to critical illness insurance is having it in place before something happens. That is to say, in most cases you cannot purchase a critical illness insurance policy after the event of a critical illness – including cancer.³

Because you must have critical illness insurance in place before the critical illness takes place in order to guarantee coverage, it is recommended you purchase your critical illness or cancer insurance policy as soon as possible. With limitations to coverage and the potential for long waiting periods, being prepared for the worst before it happens is key.² With that in mind, critical illness insurance policies and cancer specific critical illness insurance policies come in a variety of shapes and sizes, and vary based on provider and policy.³ In other words, some critical illness and cancer insurance policies may not be optimal for your situation, and ‘may not trigger payment of the policy’ under certain situations.³

What Do You Need to Know?

The first step of an effective cancer plan is to already have a health insurance policy in place. Ideally, this health insurance policy will have no gaps in coverage when it comes to cancer treatment. In the event that your health insurance does have gaps in coverage, you should consider purchasing a critical illness or cancer specific insurance policy. However, critical illness insurance specific to cancer or cancer plans won’t be effective if put in place after first diagnosis. For this reason, those considering a cancer or critical illness insurance policy should make the purchase before cancer becomes a problem – and be put in place as a preventative measure rather than reactionary response. We suggest reviewing your existing health insurance policy as soon as possible, making sure it is equipped to handle the staggering costs of cancer. In the event that it is inefficient, it is highly suggested you begin exploring other insurance options, like critical illness and cancer insurance, to cover any gaps in coverage as soon as possible.

Consult a finance professional or local licensed insurance agent for guidance.

1. American Cancer Society, Keeping Up With Health Insurance During Cancer Treatment 2020

2. American Cancer Society, Types of Health Insurance Plans, 2020

3. Investopedia, Critical Illness Insurance: What It Is and Who Needs It?, 2019

Categories: Cancer Insurance, Insurance, Supplement Health Insurance

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