Taking the Financial Pain Out of Cancer

With all individuals have to worry about cancer, financial issues should be the last one.

Unfortunately, a cancer diagnosis leads to a lot of financial uncertainty as individuals who become ill with the disease then have to determine how they are going to pay to fight this disease.

Cancer insurance provides benefits only if the individual gets cancer. No policy will cover the individual for cancer diagnosed before they applied for the policy. Examples of other specific disease policies are heart attack or stroke policies.

Cancer treatment accounts for approximately 10% of U.S. health expenses. According to various health insurance reports, no single disease accounts for more than a small proportion of the American public's health care bill.

For those individuals and their families who are not protected against catastrophic medical costs, they should consider a major medical policy.

These policies pay a major portion of the individual's covered costs following when a deductible is paid either by the person or their basic insurance. They often have very large maximums, like $100,000 to $1,000,000. Major medical policies will cover individuals for any accident or sickness, including cancer. They cost more than cancer policies due to the fact they cover more, but they are generally considered a better purchase.

For those individuals considering cancer insurance, they should ask themselves three questions: Is their current coverage adequate for these costs? How much will the treatment cost if they do get cancer? How likely are they to contract the disease?

For those individuals who have Medicare and want extra insurance, a comprehensive Medicare supplement policy is what they need.

Low-income people who are Medicaid recipients don't need additional insurance. If they think they might qualify, they should contact their local social service agency.

The best advice is to purchase basic coverage first like a major medical policy. Individuals should make sure any cancer policy will meet needs not met by their basic insurance. Individuals cannot assume that double coverage will lead to double benefits. Many cancer policies make the point that they will pay benefits no matter what one's other insurance pays. However, your basic policy may contain a coordination of benefits clause. That leads to not paying for duplicate benefits. Individuals interested in finding out if they can get benefits from both policies, should check their regular insurance as well as the cancer policy.

While you look into obtaining cancer insurance if you feel it is necessary, keep in mind that there are a number of common limitations.

First, a number of policies only pay for hospital care.

Due to the fact that the average time spent in the hospital for a cancer patient is just under two weeks, a policy which pays only when the individual is hospitalized has limited value.

Secondly, the majority of cancer insurance plans do not cover cancer-related illnesses. Keep in mind that cancer or its treatment can lead to additional physical problems like pneumonia, diabetes or infection.

Finally, a large number of cancer insurance policies have time limits.

Some policies institute waiting periods of 30 days or even several months prior to the individual being covered.

Other policies will halt paying benefits following a fixed period of two or three years.