Cancer Care Plans – Concept, Features and Comparison

LIC has recently come up with its second health insurance plan with name LIC cancer care plan. Many other companies also have similar kind of plans like HDFC has HDFC cancer care and ICICI has ICICI Pru Heart/Cancer protect. But what are these policies about? How are they different from Health insurance or critical illness policies?

Does not the health or critical illness plans cover Cancer treatment? Should you consider these policies in your health Insurance Portfolio? Well, I have tried to find answer to these. Read on the article for details.

Cancer care plans ‑ Concept and Features

As the name suggests Cancer care plans are meant specifically for cancer patients. Just Like critical Illness policies, it pays lump sum money (depends on sum assured) on diagnosis of the disease. The claim does not depend on the cost of treatment like in the health insurance policies.

But unlike Critical Illness Policies, Cancer care Plans does not wait for Specific Severity to pay the claim.

It works in 2 steps. Pays 25% of the sum assured on the detection at early stage, and if the cancer goes severe and turns into major illness, then pays the remaining portion of the sum assured. The second part of major illness may sound like a Critical Illness Plan. But the interesting part is that in cancer care plans, if the claim at first stage is passed, then the Future Premiums will be waived and the Policy will continue as it is. This is called Waiver of Premium benefit.

Another interesting Feature of these cancer care plans is the Income benefit. On detection of major disease and if opted for, company will pay 1% of Sum assured per month for next few years, over and above the Lump sum payment of the remaining Sum assured. This Monthly payment will continue even in the case of Insured dies due to this disease.

There is one more feature of Incremental Sum assured, where 10% of the basic sum assured is added into the total sum assured on every policy anniversary up to maximum of 200% of Sum assured.

Cancer care plans comparison – HDFC cancer care, LIC Cancer care and ICICI Cancer care

How Cancer Care Plans differ from Critical Illness Policies?

The main difference is that cancer care plans are meant for specific disease where as Critical Illness cover many other illness too.

1. Critical Illness policy works only in diseases with specific severity, but in Cancer care plans 25% of sum assured is paid on the detection of early stage cancer.
2. The Income benefit feature and waiver of premium s are hardly seen in critical illness policies, which is one of major attraction in the cancer care plans.
3. Survival period is generally 30 days in critical illness policies

(Read: All about Critical Illness Policies)

Should you Buy Cancer care Plan?

When it is important to have insurance cover for all major risks, you have to understand that it is impossible to be insured of all possible risks. Some risks need to be managed with own personal financial management.

(Read: Review your Health Insurance Portfolio)

Though I feel that everyone should buy this policy, but again I also know that you have other important areas to look in your life. You can’t have Insurance for everything. Those who are exposed to polluted environment, work in a specified sector which exposes them to this risky disease, or having a family history, may immediately buy this cover.

(Read: How much health insurance cover might be enough?)

Do read the policy conditions before buying. Basic comparison of Some Popular policies like HDFC Cancer care, LIC cancer care and ICICI cancer care, has been shared above.