The Importance of Cancer Insurance

Every year in the United States, over 1.6 million  Americans get diagnosed with cancer. And with almost 600,000 people dying from the disease, cancer is the nation’s second most common cause of death. While refraining from smoking, prolonged exposure to sunlight, tanning beds, and other carcinogens can help reduce the risk of developing cancer; there are no guarantees. 

Additionally, cancer care costs continue to skyrocket, and the Center for Disease Control predicts that the total will reach $240 billion by 2030. This means that Americans are saddled with medical bills and other mounting financial burdens every day, making it difficult to focus on fighting the disease or comforting their family members. As cancer rates continue to increase alongside skyrocketing treatment prices, employees and employers need to prepare for the worst ahead of time. So, how can employers ensure that employees and their family members are financially protected in the event of a diagnosis?

In the current climate, employers should consider offering a cancer insurance policy for their employees, and employees should consider opting into it. Not only is cancer insurance a necessary addition to a competitive benefits package (which is also essential in the current job market), cancer insurance can keep employees afloat as they deal with the financial and personal ramifications of a cancer diagnosis. In addition, cancer insurance can help cover medical and non-medical expenses, drastically improving the mental health of afflicted employees. Read on to learn how (and why) to add cancer insurance to your current plan.

Who Benefits from Cancer Insurance?

Cancer insurance benefits not only the person diagnosed with cancer but also their family. Cancer insurance offers an extra layer of financial protection in addition to health insurance, ​​filling in the gaps left by the constraints of a primary health insurance plan. This way, cancer insurance helps people diagnosed to cover their expenses more effectively than medical insurance alone. Most cancer insurance payments are doled out in lump-sums during different phases of the treatment process, but other plans cover specific treatments and care expenses, directly paying either the patient or the medical provider. While cancer insurance is a valuable benefit for the financial safety net, there are several other reasons why an employee may want to consider cancer insurance, particularly if they have a history of cancer in the family or a severe financial need.

1. Family History of Cancer

Cancer diagnoses are on the rise as prolonged treatment also continues to skyrocket. So, if an employee has a family history of cancer, they may want to consider cancer insurance. If your family members have had cancer, you are more likely to get diagnosed down the line, so it’s best to plan. One way to do that is to opt-in on cancer insurance. However, it is essential to note that cancer insurance policies do not cover pre-existing conditions or comorbidities, so consider this when choosing an insurance plan.

2. Lack of Emergency Medical Funds

It’s unfortunate, but dealing with a life-threatening disease such as cancer can majorly strain your finances. In such cases, having substantial emergency medical funds can be the difference between stability and bankruptcy. That’s where cancer insurance can help. A cancer insurance policy as a backup helps to offset (or cover) your treatment cost. It enables you to maintain financial stability, saving you money that you can use on your other medical expenses. If you are stressed about the threat of financial upheaval due to cancer, you should opt for a plan with a lump-sum payout option. In these cases, you will receive a lump-sum immediately after a cancer diagnosis, and you are allowed to use this money however you want. For example, the lump-sum can help cover travel expenses associated with crossing state lines to meet doctors, the cost of at-home nursing care, daycare or childcare expenses, or just everyday bills like rent or your mortgage. But no matter how you use it, having cancer insurance as a financial safety net can help to ease the stress of money management during treatment.

3. Cancer Insurance Can Work As an Add-On

Cancer insurance can still benefit you as an add-on if you have no family history of cancer and average risk of developing the disease. In such cases, you can opt for a more comprehensive health insurance plan that is budget-friendly and meets your other financial necessities. In addition, choosing a cancer-specific insurance policy can lower your premiums more than a standard health insurance policy.

However, it is important to be cognizant of the inclusions and exclusions of cancer and non-cancer insurance policies. For example, cancer policies often come with a coordination of benefits clause, meaning that cancer insurance does not pay for any of the benefits offered in your standard health insurance plans. Keep this in mind when choosing a plan. While you do not need to have both standard health insurance and cancer insurance, double coverage provides extra protection from diseases, both cancerous and otherwise, keeping you healthier and more financially stable.

4. The Cost of Cancer Treatment is Skyrocketing

As cancer cases become more prevalent worldwide, cancer treatment costs continue to skyrocket. The price of cancer treatment fluctuates depending on various factors, such as diagnosis (and whether doctors catch the disease in the early, major, advanced, or critical stage), hospital costs, duration of treatment, and whether the condition is in remission or recurrence. On top of that, you must also factor in the loss of income and how much your insurance is already covering.

While all of these variables may seem overwhelming, a cancer insurance policy can offer you peace of mind and financial stability. A cancer insurance plan offers a premium waiver benefit if doctors catch the disease early on. And if they detect major cancer, you can receive a set monthly stipend dispersed for several years. On top of that, a comprehensive cancer policy can also help to cover non-medical expenses, such as daycare costs, home health expenses, and dietary restriction assistance.

5. Cancer Insurance Covers Most Types of Cancer

Another benefit of cancer insurance is that it covers almost all types of cancer except for skin cancer. However, if the cancer is caused by AIDS, HIV, or another sexually transmitted disease, the insurance claim may be null and void. If you have a pre-existing condition, the same thing may happen, so keep these conditions in mind. 

Nevertheless, a cancer insurance policy can be a huge help, especially for the families of cancer patients. Many cancer insurance policies provide financial assistance to the family during the beginning of treatment, helping to replace lost income. A family representative must submit the bills that need payment to receive the funds during a waiting period. 

No matter how much money you have, getting diagnosed with cancer is highly frightening and threatening to your health and the financial well-being of your family. This is why cancer insurance is so necessary – it not only saves you from financial catastrophe in the case of a cancer diagnosis, it can give both you and your family peace of mind.

What Expenses Does Cancer Insurance Cover?

Download: The Importance of Cancer Insurance

The expenses covered by cancer insurance vary according to the insurance provider and the policy’s fine print. Still, the majority of plans cover medical and non-medical costs. Medical costs include expenses like copays, lab tests, extended hospital visits or stays, cancer treatments, and even some procedures such as stem cell transplants. On the other hand, non-medical costs encompass home health care, daycare costs, loss of income, and other incidentals. It is important to note that cancer insurance will not cover any expenses associated with non-melanoma skin cancer. Additionally, patients with early cancers (like carcinoma in situ) will likely only receive a fraction of the payout, usually half or less of the payout from a standard diagnosis.

Why Should You Add Cancer Insurance to Your Employee Health Care Package?

Because treatment costs are constantly rising, a cancer insurance plan can help keep your employees financially secure in the fight against cancer. A cancer insurance policy can cover treatment costs, enabling you to seek out the best treatment possible, and it can also prevent your savings from dwindling due to loss of income and other burdens.

Cancer insurance provides financial security and peace of mind, offering lump-sum payments throughout diagnosis, treatment, and surgery. The payouts are scaled to reflect the severity of the disease, fluctuating depending on previous claims and which stage of the condition you’re fighting. Cancer insurance also provides free regular cancer screenings and check-ups throughout the policy term, giving you added peace of mind.

Cancer insurance policies are also more reasonably priced than other health insurance plans, and the insurance premiums qualify for tax benefits much like medical insurance. Additionally, cancer insurance has no death, maturity, or surrender benefit, meaning you have more direct access to the policy’s cash value.

Cancer insurance is easiest to secure as part of a competitive employee benefits package. However, even if cancer insurance plans are available through an employer, employees still have to cover the policy’s total cost in most cases. But for the protection the plan provides, the price tag is often worth it, especially when it’s conveniently deducted from your paycheck. And with straightforward claims processing and guaranteed acceptance (as long as you have a job upon application), getting cancer insurance through your employer is the way to go. All you have to do is sign up – no medical exam or screening tests are required.

While some insurance carriers offer individual cancer insurance policies, they are less common and not subject to the same group bundling deals a company receives. However, if you sign up for cancer insurance through your current employer, the coverage is portable, meaning that you can switch jobs or quit altogether and still retain your coverage.

Protect Your Employees and Offer Cancer Insurance with Canal HR

Being diagnosed with cancer impacts more than just your wallet – it impacts your peace of mind and your family’s well-being. Offering cancer insurance as part of a competitive benefits package is so important. To stay mindful of employee needs, especially during times of strife and strain, offering financial and emotional support via cancer insurance is necessary. And with cancer diagnoses on the rise alongside a significant increase in treatment prices, there’s never been a more pressing time to add cancer insurance to your benefits package (or, if you’re an employee, to take advantage of your employer’s insurance benefits).

Cancer insurance should be at the forefront of your mind, especially if you have a family history of cancer. If your family members have been diagnosed with cancer, you have a higher chance of diagnosis at some point in the future, so plan as best as you can. You should also consider cancer insurance if you don’t have emergency medical funds. Without insurance, a cancer diagnosis could put you in a tough spot financially. But with cancer insurance, you’ll receive treatment coverage or lump-sum payments, helping to fund your journey to recovery. And because cancer insurance can work as an add-on to traditional medical insurance, it’s easy to opt-in for portable coverage. In addition, cancer insurance covers most types of cancer, offering you ironclad financial protection.

Contact Canal HR today to learn how to add cancer insurance to your benefits package, offering world-class financial (and emotional) security for your employees. As part of our PEO services, we are experts in employee satisfaction, building a benefits package, or devising a strategy that works for your company. .

To learn more about how Canal HR can help you offer your employees’ health insurance and cancer insurance, reach out to us today for a free, no-obligation consultation with one of our dedicated experts.

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