Cancer plans are insurance policies that supplement whatever health plan you have in place to help cover the cost of hospital stays, chemotherapy, and other types of cancer treatment.
This is not comprehensive health insurance, just a supplemental plan.
Cancer insurance is similar to critical illness plans, but is limited to cancer diagnoses.
What’s covered by a cancer plan
Depending on the type of cancer plan you have, it might cover copays, child care, deductibles, lost wages, travel costs, or the excess costs of treatment when your regular health care policy benefits are exhausted.
It generally provides some type of benefit for these services:
- Hospital room and board
- Physician treatment
- Surgery
- X-rays
- Radiation
- Chemotherapy
Your plan’s offering may have more benefits, so be sure to ask one of our licensed insurance agents.
Your plan may also provide your benefit in a lump sum payment once you have been diagnosed with cancer.
Cancer insurance does not cover any of the costs related to non-melanoma skin cancer. Additionally, if you are diagnosed with an early cancer (ones that may not progress to cancer, or stage 0), you may only get a reduced payout.
Types of cancer plans
There are three types of plans:
- Expense incurred policy – Pays a percentage of covered treatments up to policy limits.
- Indemnity policy – Instead of paying a certain percentage, it lists a dollar amount of coverage for each covered treatment.
- First diagnosis or first occurrence cancer policy – Pays the policyholder a lump sum payment upon the first diagnosis of cancer.
Who is eligible?
To be eligible for cancer insurance, you can’t have a pre-existing condition that usually leads an individual to cancer.
Also, people who have previously been diagnosed and treated for cancer are ineligible.
People with HIV are also typically excluded as it is associated with an increased risk of cancer.