Health Insurance

Thanks to medical advancements, more patients survive cancer each year.  However, treatment can be costly. The average cost of medical care and drugs to treat cancer is around $42,000 in the year after getting a diagnosis, with the exact cost depending on several factors. Cancer insurance could help you prepare financially for a potential cancer diagnosis and treatment, helping to ease the emotional stress of this situation if it occurs.

First of all, cancer is the second most common cause of death following cardiovascular diseases (Yale Journal of Biology and Medicine).

According to the latest research from the American Cancer Society, 39 out of 100 men and 38 out of 100 women will develop cancer during their lifetime. Your individual risks increase substantially if you have a history of smoking, a family history of cancer, or genetic susceptibility.

Estimated numbers of new cancer cases for 2019, American Cancer Society

The sheer likelihood of being diagnosed with cancer is high. Because of that all-too-real risk, we have to take a look at the Medicare system and confirm what out-of-pocket costs the cancer patient may have.

How cancer insurance works

Cancer insurance is supplemental insurance that helps cover the costs of diagnosing and treating cancer. There are several types of cancer insurance policies:3

• Expense-incurred policy: These pay a specific percentage of treatment costs up to a defined limit.
• Indemnity policy: These pay a fixed sum for each treatment covered by the policy.
  Lump-sum policy: These pay a defined cash benefit for medical expenses directly and indirectly related to the treatment.
• The first two policy types, like health insurance, come with deductibles, copays, and other stipulations. Lump-sum cash benefit policies simply pay you a benefit directly (unless assigned otherwise), letting you use the funds as you need.

Covering the cost of cancer treatment without insurance can be challenging. A cancer insurance policy from Aflac can help you prepare for these circumstances and manage the cost of treatment much more easily.

What does cancer insurance cover?

Cancer insurance can assist with the costs of treating cancer.

Cancer insurance may also help cover costs not directly related to treatment, such as:

• Lost income
• Living expenses
• Paying off debts

Pros of cancer insurance

Buying a cancer insurance policy offers many benefits, such as:

Affordable premiums

Cancer insurance premiums are generally affordable. Many plans cost $10 to $50 per month, although your premiums can vary based on many factors.³ Regardless, these premiums can be well worth the cost of cancer and other expenses you must cover during treatment.

Use the payout for any expenses

Many use cancer insurance payouts to help cover treatment and medication costs. However, you can use the payout for nearly anything.³ For example, your benefit can help replace lost wages, pay for travel to cancer facilities, and cover some of your living expenses.

Be prepared for anything

Cancer insurance helps you prepare for the unexpected. Even if you are never diagnosed with cancer, having a cancer insurance policy can help give you peace of mind throughout your life. It also ensures your loved ones are not financially strained when helping you pay for treatment if you do get a diagnosis.

Cons of cancer insurance

Cancer insurance offers plenty of benefits, but there are a few downsides to consider:

Premiums are higher for older individuals

The risk of cancer increases as we age.⁴ This can cause premiums to be higher for older individuals when getting a policy. Luckily, getting a policy while younger can help you lock in lower premiums. That way, you can keep paying affordable premiums for the rest of your life.

Many policies don’t cover non-melanoma skin cancer

Cancer insurance typically doesn’t cover costs associated with non-melanoma skin cancer.⁵ As a result, you may pay premiums for a cancer insurance policy that can’t help you cover treatment costs if you get this type of diagnosis.

Is cancer insurance right for you?

Consider the following factors when deciding if cancer insurance is worth getting:

• Family and personal health history: Investing in a cancer insurance policy can help provide peace of mind and prepare you if you have a family history of cancer.
• Financial situation: You must weigh the cost of premiums against the costs of cancer treatment. Individuals with more financial resources may skip cancer insurance, whereas those who may need financial help should consider getting a policy.
• Future financial goals and obligations: Cancer insurance may be worth buying if you have future financial goals or responsibilities, such as buying a home or paying for your children’s college education.
• Healthcare access: The cancer insurance payout can help cover the cost of specialized cancer centers or health providers if you get cancer and need to visit one of these.
• Lifestyle and occupation: Certain lifestyle choices, like smoking, could increase the risk of getting cancer. Similarly, some occupations, such as those that expose workers to chemicals and toxins, may increase cancer risks. Getting a policy could help protect you in these and similar situations.

Why is Cancer Insurance important?

Cancer insurance is important for several reasons:

1. Financial Protection: A cancer diagnosis often comes with significant medical expenses, including treatments like surgery, chemotherapy, radiation therapy, and medications. Cancer insurance helps offset these costs by providing financial assistance for medical bills, deductibles, copayments, and other out-of-pocket expenses not covered by primary health insurance.
2. Income Replacement: Cancer treatment may require taking time off work for appointments, recovery, and recuperation. Cancer insurance often includes benefits that can help replace lost income during this period, ensuring financial stability for individuals and their families while they focus on their health and recovery.
3. Lifestyle Preservation: Cancer insurance can help individuals maintain their lifestyle and financial security by providing funds to cover non-medical expenses such as mortgage or rent payments, utility bills, groceries, childcare, and transportation costs to and from medical appointments.
4. Access to Experimental Treatments: Some cancer insurance policies offer coverage for experimental or alternative treatments that may not be covered by traditional health insurance plans. This can give individuals access to potentially life-saving treatments that they might not otherwise be able to afford.
5. Peace of Mind: Knowing that you have cancer insurance coverage in place can provide peace of mind and reduce anxiety about the financial implications of a cancer diagnosis. It allows individuals to focus on their health and well-being without worrying about the potential financial burden on themselves or their loved ones.
6. Supplemental Coverage: Even with comprehensive health insurance coverage, individuals may still face gaps in coverage, high deductibles, or limitations on certain treatments or services. Cancer insurance acts as supplemental coverage to fill these gaps and provide additional financial protection specific to cancer-related expenses.

Overall, cancer insurance is important because it provides critical financial protection, peace of mind, and support during a challenging and often costly time. It ensures that individuals and their families can focus on what matters most—fighting cancer and getting well—without the added stress of overwhelming medical bills and financial uncertainty.

How USA Investment Solutions Can Help

Our primary goal is to assist families in safeguarding their financial well-being.  We partner with over 90 of the country's highest-rated life insurance companies.  We will shop them all to find you the lowest rate for the coverage and benefits, taking into account their individual needs and health status. We understand that each individual, business, and family requires a tailored life insurance solution. Our mission is to assist you in discovering the perfect plan for your needs. or complimentary quotes and consultations, please reach out to us s at (714) 794-2009, email us at [email protected], or fill out our contact form.  We're here to assist you, and there's no pressure to commit. Even if you're currently working with a professional, seeking a second opinion can offer valuable insights and perspectives.