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10 Reasons Why Having a Cancer Insurance Policy is Beneficial

By Vikas Chandra Das
16 August 2022, 3:12 PM

Cancer is a terminal disease that has adverse psychological and financial consequences. Managing such a condition can be challenging for the sufferer and everyone involved.

A health insurance policy provides comprehensive coverage to a cancer patient through its plan. Cancer insurance protects the sufferer from the sharp rise in incidents of the disease and the exorbitant cost of treatment, including chemotherapy, radiation, hospitalisation, nursing care, surgery, and medication. A certain amount is insured depending on the stage of cancer during diagnosis.

Let’s explore why you, like hundreds of others, should get cancer insurance in India right away.

1. Increased Cancer Cases

Fact: Cancer is the cause of 1 in 6 deaths worldwide. The disease is more common than most people realise. One may contract it due to factors ranging from wireless radiation to smoking and using tobacco.

The easiest thing people can do to boost their probability of survival is to purchase cancer insurance coverage, which will allow them to receive unbroken cancer treatment without facing any financial hardship.

2. Coverage for All Types of Cancer and its Stages

The best cancer insurance plan covers various types of the disease, including breast, lung, liver, stomach, colon, ovarian, and fallopian tube; this is one of its most essential features. Another benefit of purchasing cancer insurance is that it provides coverage for all stages of the disease, unlike basic health plans or critical illness insurance, which only do so up to a certain level.

3. Costly Diagnosis and Treatment Procedures

Chemotherapy, radiotherapy, transplants, and surgeries are a few popular yet costly cancer treatment options. Expenses related to blood transfusion, hospitalisation, medication, resources, equipment, and other medical facilities significantly increase the overall cost of cancer therapy.

4. Coverage for Expenses Other than Medical Bills

Cancer insurance helps cover the costs of healthcare-associated cancer treatment. One must, however, cope with more than just medical debt. The increased expenses related to cancer treatment could go unnoticed.

Additional costs like lodging, transportation to multiple cities for treatment, over-the-counter medication, specialised apparel, and others can quickly drain one’s bank balance. A cancer insurance plan offers a crucial financial safety net.

5. Preventing Financial Difficulties

Most individuals in India struggle to manage lakhs of rupees all at once to pay for cancer-related medical expenses. No matter how much one is willing to give up in terms of everyday family requirements, lifestyle, and other things, they cannot compromise on their children’s education, unpaid debt, and so on. 

When you know you have a lot to take care of while taking care of the costs associated with cancer treatment, being prepared with the best cancer insurance plan is the ideal decision. The cancer insurance plan safeguards you from taking drastic steps such as selling your house, car, land, and other valuables.

6. Lump-Sum Benefit

Insurance against cancer is nothing short of a blessing. While the news of a diagnosis can be shattering, insurance offers you comfort and security as it offers a lump-sum payment. This predetermined amount, which represents a certain proportion of the insured value, aids in covering all possible financial commitments one would have at such a time.

7. Addendum to Current Policy

Cancer insurance offers tremendous assistance in lowering the exorbitant costs of treatment when obtained as a supplemental insurance policy. A dedicated cancer insurance plan will provide you with higher coverage, such as up to tens of lakhs of rupees. In contrast, a standard health insurance policy will only cover cancer related expenses  for a lower sum, say, INR 5 lakhs. Therefore, it helps to get cancer insurance even if you have a family floater plan to ensure that you are always protected, even if you submit a cancer insurance claim.

8. Waiver of Premium Benefit

The ability to waive premiums is a special perk that many plans may not offer. The insurer waives off the premium for three to five years, in case of early cancer stage. However, in case with major/last stage of cancer, insurers can waive off the future premiums applicable.  

9. Possibility of Extending Cover

Many health insurance providers give customers a choice to increase their basic coverage by up to 10% annually (up to 200%) or until a claim is made for an early or advanced cancer stage.

10. Tax Benefits

You can avoid paying taxes when you get cancer insurance coverage as the tax obligation is drastically low. Section 80D of the Income Tax Act of 1961 allows you to claim a tax deduction of up to INR 25,000 for your expenses. Senior citizens may even get more significant tax benefits of up to INR 50,000.

Read more - Are Cancer Specific Health Plans More Beneficial Than Critical Illness Policies


The National Institute of Cancer Prevention and Research (NICPR) has estimated that 2.25 million individuals in India currently live with cancer and that more than 1,157,294 people are diagnosed with the disease each year, making this type of cover extremely pertinent today. We have illustrated the significance of purchasing cancer insurance policies, how they protect you and your loved ones from escalating hospital costs, and how they ensure your future despite the rise in cancer diagnoses. After analysing the various possibilities, you can easily purchase cancer insurance online by keeping these factors in mind.

Read more - 5 Best Cancer Insurance Plans in India


1. Is health insurance worth it in India?

With the expense of high-quality healthcare soaring, a brief hospital stay at a private medical facility is sufficient to affect your finances severely. Illnesses strike without warning or notice. That apart, it is impossible to forecast the amount of your future medical or hospitalisation expenses; this is when a good health insurance policy helps.

2. I need to purchase health insurance for my parents. What is the best policy to buy in India?

Honestly, there's no such thing as the 'best plan.' It depends on the coverage you require, your parents' ages, your health history, and so on. We advise researching what to look for when purchasing health insurance and comparing the best providers.

3. What are some factors that I need to consider before buying health insurance?

Considerations while selecting health insurance include:

  • The claim ratio needs to be greater than 90%.
  • It should provide coverage for diseases you have a higher risk of contracting because of family history or work hazards.
  • Financial stability of the insurance provider (for the long run)
  • Attractive no-claim bonuses.
  • Besides, ensure that the network list includes the most critical care hospitals.

4. My employer provides me with health insurance. Should I buy another one?

Companies provide 'group' health insurance for staff members of other businesses. It can be compared with a family floater health insurance when thousands of people are in your work family. Owning your health insurance, whether personal or family-based, is always preferable. Otherwise, you risk losing the coverage if you change jobs or stop working, in which case the clock on pre-existing conditions will have to start anew.

5. Can I skip disclosing my existing ailments to the insurer?

When submitting the proposal form, you must mention any pre-existing health problems. Agents often ask you to sign the form and offer to fill it up later. They often leave out the existing conditions, even if they are aware that doing so will make it challenging to get the proposal approved by the underwriters; this can result in the rejection of health insurance claims and even the policy’s cancellation.

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