World Cancer Day is observed on 4 February every year. The disease is the second-biggest cause of death in India after cardiovascular conditions, and according to the Lancet Oncology Journal, by 2035, 1.7 million patients will be diagnosed with cancer along with 1.2 million deaths per year. Given the rising incidence of people suffering from cancer, a policy cover for this has become increasingly relevant. While most health insurance policies cover major critical illnesses such as diabetes, cardiovascular conditions as well as cancer, the coverage may not be sufficient. “Health insurance policies generally pay only for in- 17 patient hospitalization and for treatment at hospitals in India. They do not cover the entire cost of treatment. Also, the policy amount may not be enough as the common man generally does not go for a health policy of more than ₹5 lakh,” said Naval Goel, chief executive officer and founder, PolicyX.com, an online insurance marketplace. The cost of cancer treatment can go up to ₹20 lakh in some cases. A critical insurance plan protects against many terminal diseases, while a dedicated cancer policy covers expenses for cancer treatment only.

“It is worth considering a critical illness policy or disease-specific product if one has a family history of cancer,” said Shashank Chaphekar, chief distribution officer, Manipal Cigna Health Insurance. In a critical illness policy, the lump-sum benefit is paid when diagnosed with the disease. Not only this, the premium is waived post-diagnosis and a monthly income benefit is provided for a fixed number of years. “As a thumb rule, ensure that you take the protection of around 10 times your annual income as your sum insured for critical illness,” Chaphekar added. However, a critical illness benefit may restrict coverage only to an advanced stage of cancer. “In contrast, a standalone cancer plan specifically offers cover against various types and stages of cancer.

A cancer-specific policy pays the claim amount right at the time of diagnosis itself, ensuring the individual has sufficient financial bandwidth to cover up for hospitalization, surgeries and other costly yet lifesustaining treatments,” said B. Srinivas, products head, ICICI Prudential Life Insurance. Remember that while both these plans provide financial security in the form of lump-sum payout, the main difference is that a cancer plan is disease-specific whereas a critical illness insurance plan covers a large number of specified critical illnesses, including cancer. “A super top-up plan at a very economical premium can be a wise thing to do, to keep you covered for a high sum insured, as the plan provides financial protection against not just specific diseases but also for all infections, diseases and accidents,” said Chaphekar. Also, a disease-specific product cannot substitute for a basic or a comprehensive health insurance policy.