Important Reasons to Buy Cancer Insurance
According to the National Institute of Cancer Prevention and Research (NICPR), around 2.5 million individuals in India suffer from cancer. This disease is indeed dreadful and may cause emotional and financial turmoil upon diagnoses. You may shield yourself from such a financial strain by investing in a cancer care plan.
There are numerous benefits of being covered under a cancer insurance policy. Following are six major advantages of buying such a plan at the earliest.
1. Coverage against high treatment costs
Medical inflation in India is growing by the day. Depending on the type and stage of cancer, you may be required to pay an exorbitant cost for treatment. In order to protect yourself financially from the treatment-related costs such as chemotherapy, surgery, and radiotherapy, you may unfailingly invest in a cancer care insurance policy.
2. Lump sum payout
The good news is that cancer care plans offer lump sum payout, which may be used to meet numerous financial obligations. Most health insurance providers offer 20-25 percent of the sum assured upon diagnosis at an early stage. The rest is then paid at the major or last stage of the disease. Some insurance providers offer free checkups during the term of the insurance policy.
3. Income benefit
In case of diagnosis of cancer, you may lose your income-earning ability. In order to compensate for such a loss, some insurance providers offer income benefit. This benefit is a certain percentage of the sum assured amount and acts as a regular stream of income to meet your financial needs.
4. Waiver of premium benefit
There are certain rider options available in the market, so as to enhance the level of coverage of your cancer policy. One such rider, known as ‘waiver of premium,’ allows you to enjoy the benefits of the policy without having to pay any premiums. This add-on, however, may be availed of only once you are diagnosed with cancer.
5. Wide coverage
Most cancer care insurance plans offer coverage for numerous types of cancer. You may, therefore, enjoy a wide scope of coverage at an affordable price. However, some insurers exclude certain types of cancer such as skin cancer, and hence you may conduct extensive research before purchasing such a policy.
6. Tax benefits
Just like health insurance policies, you may avail of tax benefits on your cancer insurance plan. You may avail of a tax deduction of up to INR 25,000 under Section 80D of the Income Tax Act, 1961. Senior citizens may enjoy a higher tax benefit amount. Purchasing such a policy, therefore, allows you to reduce your tax liability largely.
A cancer insurance plan saves you from a financial breakdown if you are ever diagnosed with the deadly disease of cancer. You may, therefore, purchase such a plan and stay financially protected at all times.