How It Works

1. You apply and are approved for a policy (often requires health questions, sometimes no exam).


2. If diagnosed with a covered cancer after the policy waiting period, you receive a benefit.


3. Benefits may be paid as:
• Lump Sum: One-time cash payout (e.g., $10,000–$50,000).
• Ongoing Benefits: Payments tied to treatments (per chemo session, per day of hospitalization, etc.).


4. You decide how to use the money: medical bills, mortgage, travel, or daily living expenses.

Coverage

• Direct Expenses (Medical Expenses):
• Hospital stays, surgeries, radiation, chemotherapy.
• Doctor visits, specialist consultations.
• Prescription drugs related to cancer treatment.
• Reconstructive surgeries (e.g., post-mastectomy).


• Indirect Expenses (Non-Medical Expenses):
• Travel and lodging if treatment is far from home.
• Home health care and caregiving services.
• Childcare, household help, or lost wages.
• Alternative or experimental therapies (depends on policy).

What’s Not Covered:

• Pre-existing cancer diagnoses (usually excluded).
• Non-cancer-related illnesses or injuries.
• Preventive screenings (covered by regular health insurance).
• Certain experimental treatments not listed in the policy.
• Cancers diagnosed during the waiting period (commonly 30–90 days after policy issue).

Pros and Cons

✅ Pros:

• Cash benefits paid directly to the policyholder.
• Flexible use of money (medical or personal needs).
• Affordable premiums compared to full health insurance.
• Peace of mind during a stressful time.
• Helps maintain financial stability by covering indirect costs.

❌ Cons:

• Only pays for cancer diagnoses (not other illnesses).
• Pre-existing conditions often excluded.
• Benefit amounts may not fully cover large medical expenses.
• Waiting period before coverage starts.

Who Should Consider

• Individuals with a family history of cancer.


• People with high-deductible health plans (HDHPs) who want added protection.


• Self-employed individuals who lack comprehensive employer coverage.


• Families concerned about covering both treatment and household expenses if income is disrupted.


• Seniors or pre-retirees who want financial peace of mind during Medicare years.

Best Age to Buy

• Typically 20s–50s when premiums are lowest.


• Buying earlier locks in lower rates.


• For seniors, cancer insurance can still help if affordable, but premiums rise with age.

Policy Cost

• Premiums are typically affordable (as low as $10–$40/month depending on age, health, and benefit amount).


• Factors influencing cost:
• Age at enrollment
• Benefit level (higher lump sums = higher premiums)
• Policy type (lump sum vs treatment-based benefits)
• Tobacco use
• Family coverage vs individual

Underwriting

• Usually requires a short health questionnaire (some plans guaranteed issue).


• Pre-existing cancer history often disqualifies you.


• Some policies have a graded benefit: limited payout in first year, full payout after.