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If you are considering the purchase of cancer insurance, it is a good idea to carefully review your current health insurance policies and determine how much coverage you would receive from your existing health insurance, if you were to develop cancer. If you do not have comprehensive health insurance coverage, you should consider purchasing a more comprehensive health plan prior to purchasing a cancer policy. If you are covered under Medicare and desire additional insurance protection, a comprehensive Medicare supplement policy may provide you with adequate coverage. Medicaid recipients may not need any additional insurance; if you think you might qualify for Medicaid, contact your local social service agency.
Duplicate Coverage is Expensive and Unnecessary.
If possible, buy a comprehensive health insurance plan first. Make sure any cancer policy will meet needs not met by your major medical policy. You cannot assume that duplicate coverage will produce duplicate benefits. Some cancer policies advertise that they will pay benefits no matter what your other insurance will pay. However, your major medical policy may contain a coordination of benefits clause or other provisions that would prohibit duplicate coverage. To find out if you will qualify for benefits from both policies, carefully review the provisions of both policies.
Cancer Insurance Might Not Cover All Cancer-Related Expenses.
Medical costs of cancer treatment vary. On average, hospitalization accounts for 78 percent of such costs and physician services account for 13 percent. The remainder goes to other goods and services, such as drugs and nursing home care. Cancer patients often incur large medical expenses and non-medical expenses in connection with their treatment. Many times, incurred expenses exceed benefits provided by cancer and/or specified disease coverage. However, some individuals (especially those with a strong family history of cancer or other dreaded diseases) feel more secure with supplementary type coverage provided by cancer and other specified disease policies. Regardless, it is important to carefully review and understand cancer policy provisions, limitations and claim requirements.
Cancer Insurance is not a Substitute for Major Medical Insurance.
Remember, cancer insurance and other specified disease type policies are no substitute for comprehensive health insurance coverage. However, as indicated above, they can provide valuable supplemental benefits in some instances. Your highest health insurance priority should be the purchase of comprehensive coverage if possible. If supplemental coverage is needed or desired, cancer insurance and/or other specified disease may help meet those needs. |
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