Cancer is one of the deadliest diseases that you can be diagnosed with. The treatment of cancer is very expensive and with medical inflation surging, it becomes very important that you have an insurance plan which allows you to take care of the cost of the treatment of cancer.
You can either purchase a critical illness plan or a cancer insurance plan. However, both are very different from each other and it is understandable that you can feel slightly confused regarding which of the two types of plans should you purchase for yourself. We will have a look at what both these types of plans offer and which of the two will be suitable for you.
What is a critical illness plan?
Critical illness plan is a type of health insurance plan which offers coverage if you are diagnosed with a serious medical condition. The insurer will offer you a lump-sum amount which will allow you to take care of the medical expenses which would arise out of the treatment of the medical condition.
Benefits of having a critical illness plan
Some of the benefits of having a critical illness plan are:
- You are offered a lump-sum amount which allows you to take care of the medical expenses that would arise out of the treatment of the condition.
- It covers various types of medical conditions such as cancer, heart conditions etc.
- The plan is easily customisable in nature.
- The premiums are affordable in nature for a higher cover.
- You get to enjoy tax benefits under Section 80D of the Income Tax Act, 1961.
What is a cancer insurance plan?
Cancer insurance plan is a type of product which provides you coverage in case you are diagnosed with any form of cancer. The payout will differ according to the different stages of cancer and helps you take care of the medical expenses that will arise out of the treatment of cancer. A cancer insurance plan ensures that you do not exhaust the hard-earned money that you may have saved for the future while getting treated for cancer.
Benefits of having a cancer insurance plan
Some of the benefits of having a cancer insurance plan are:
- A cancer insurance plan covers different stages of cancer.
- A lump-sum amount is paid to you if you are diagnosed with a form of cancer.
- Under a cancer insurance plan, your future premiums may be waived off depending on the policy chosen by you, and the stage of cancer you are diagnosed with.
- You will get to enjoy various tax benefits under Section 80D of the Income Tax Act, 1961.
Some of the drawbacks of availing a critical illness plan with respect to cancer
There are certain drawbacks of purchasing a critical illness plan if you are looking for coverage against cancer:
- Critical illness plans do not cover the early stages of cancer. Your cancer will have to advance to the next stage if you wish to enjoy the benefits of your critical illness plan.
- The critical illness plan purchased by you will not offer you coverage for cancer when the waiting period is active. If you are diagnosed with cancer during the waiting period, the policy will be terminated and you will not get to avail any benefits.
In the end, both critical illnesses plan and cancer insurance plan are two different types of products and are brilliant in their own right. If your lifestyle and medical history suggest that you are at risk of being diagnosed with cancer, then it is recommended that you purchase a comprehensive cancer insurance plan as the critical illness plan may not cover you for all the stages of cancer.
Otherwise, it is always a safe option to purchase a critical illness plan as it provides you with financial protection in case you are diagnosed with serious medical conditions such as heart attack, kidney ailment, etc.
Thus, you must get yourself medically evaluated and then decide which of the two products you must buy. If you are more at risk of being diagnosed with cancer, you must purchase a cancer insurance plan, otherwise, a critical illnesses plan will suffice.
Financial Analyst at Farmer’s Insurance with over 25 years of experience in the Financial Industry