Monday, August 2, 2010

Do I Need Cancer Insurance?

Anyone Can Be Diagnosed With Cancer
Cancer is a scary word. Despite the best efforts of doctors and researchers, cancer remains a concern for many individuals and families. People from all walks of life are at risk, regardless of age, gender or ethnic background. In the US, men have less than a one-in-two risk of developing cancer during their lifetime; for women, the risk is slightly higher than one-in-three.(i) Advances in pharmaceuticals, surgical procedures, and alternative treatments have improved the chances of treatment and survival, and people living with cancer have a much longer life expectancy. But with improved treatments and increasing survival rates comes increased costs.

The Financial Impact of a Cancer Diagnosis Can Be Overwhelming
A strong major medical plan is your first defense against medical expenses when facing a cancer diagnosis, but with rising deductibles, people are increasingly facing a substantial increase in their out-of-pocket expenses before their major medical plan kicks in. According to The American Journal of Medicine, more than 62% of bankruptcies in 2007 were related to medical causes.(ii)

If you are diagnosed with cancer, you should spend your time focusing on getting better, not worrying about your finances. Some expenses are not going to be covered by major medical insurance – including travel, food, lodging, child care and household help. Keep in mind that life at home doesn’t stop either. Car payments, the mortgage, and utilities will continue to come due, whether you can work or not.

Fortunately There Is Cancer Insurance
Cancer insurance can help ease the financial worries that come with a cancer diagnosis. It will help fill in the gaps left by the major medical insurance. There are several cancer insurance options available to people, and trying to figure out which one works best for you and your family can be very confusing. It makes sense to have the tools to find the right insurance plan and the right insurance carrier.

When considering which insurance company to go with, make sure you ask the right questions! Consider the following factors:

1-The Insurance Carrier
There are many different insurance providers, so it is important to consider the company standing behind the product. What do you know about them? How long have they been around? What about their financial stability?

2-Policy Benefits, Limitations and the Definition of Cancer
Make sure the policy you’re considering covers the cost of treating recurrences or another form of cancer. And look for how the policy defines cancer. Most people are not familiar with the key benefits of a cancer policy or how plans are structured. Look for:
- A benefit for the internal diagnosis of cancer
- Strong benefits for radiation and chemotherapy
- Generous Hospitalization Benefits
- Comprehensive Benefits for Surgery
- Benefits for transportation and lodging in case travel is required.
- End-of-Life Care Benefits if the cancer becomes terminal.

3-Rate Stability
Annual rate increases are often considered the norm, but it is possible to find a provider that does not regularly raise premiums. Ask your insurance representative whether the company you’re considering has a history of rate stability.

4-Claims
You’ll find out just how reliable your insurer is when you file a claim. Before you buy, research how quickly they process claims. Do the benefits require coordination with other coverage before the benefits are issued?

5-Spouse & Dependents
Not all policies offer benefits or the same level of benefits to spouses and children. If you are the primary insured, make sure your policy offers coverage for the rest of your family equal to yours.

6-Early Detection & Cancer Prevention
Many of today’s tests and scans identify cancer at its earliest. Some cancer policies offer when you take advantage of those tests, including annual mammogram or prostate screening tests.

7-Control
Is the policy guaranteed renewable or can your employer or insurance company terminate it at any time? Will your plan be canceled if the employer changes plans? Is the policy portable – Can you take it with you if you leave your job?

8-Underwriting
Insurance companies’ underwriting questions vary, but one commonly asked question is, “How long have you been cancer-free?” Some companies will not cover you unless you have been cancer-free for at least 10 years. Look for a company that is less strict in its underwriting requirements, and that will cover you if your cancer recurs.

i - Cancer Facts and Figures 2009, American Cancer Society
ii - Medical Bankruptcy in the United States, 2007: Results of a National Study, (Published in 2009), The American Journal of Medicine.