Cancer insurance is a type of supplemental health insurance that is meant to manage the risks associated with the cancer disease and its numerous manifestations. Cancer insurance is relatively new trend within the insurance industry at large. It is meant to mitigate the costs of cancer treatment and provide policyholders with a degree of financial support. This support is based upon the terms written into a particular policy by an insurance company. As with other forms of insurance, cancer insurance is subject to charges, called premiums, which change depending on the risk associated with covering the disease.
Cancer insurance provides benefits only if you are diagnosed with cancer, as defined by the terms of the policy contract. These policies offer limited benefits for the diagnosis and/or treatment of cancer. Most cancer policies provide benefits based upon specified health care costs and expenses incurred in conjunction with the treatment of cancer, though some policies may pay a lump-sum benefit upon diagnosis. Cancer policies that provide more comprehensive benefits and coverages will cost more than policies with limited coverage. In addition, premiums may increase as you get older, or may increase if total claims paid for consumers covered under a company’s specific cancer policy increase beyond the company’s expectations.
Cancer insurance is sometimes referred to as a “specified disease” or “dread disease” policy. Typically, policy contract provisions found in this type of coverage are very specific and limit benefits to narrowly-defined covered illness and/or injury. Specified disease policies generally exclude benefits for any disease or sickness that is diagnosed prior to the policy effective date. Examples of other specified disease policies are heart attack or stroke policies.