Cancer Insurance

Not only can cancer be an emotional trauma, but it can also be a financial burden for those who have limited or no cancer insurance.

Take a moment and ask yourself if you have the right plan in place should you be diagnosed with cancer.

Among the things to consider are:

• What does the policy pay for? A good policy will pay for hospital stays, medicine, surgery, doctors' visits, radiation treatment and chemotherapy. It is important to understand what is excluded.
• Does the policy offer increased benefits after an extended hospital stay? A number of policies might promise increased benefits after a lengthy hospital stay (longer than three months). According to the Wisconsin insurance department, the average hospital stay in relation to cancer is 13 days.
• Are cancer-related illnesses covered? Cancer, along with its treatments, can lead to other physical problems, such as infections, diabetes and pneumonia. The majority of cancer policies do not cover treatment for these illnesses.
• Will travel expenses be covered? Often, cancer treatments necessitate travel to a hospital many miles away. Not all cancer policies will cover travel expenses, but some will cover not only the travel of the patient but also for companions.
• Will your medical policy pay duplicate benefits? While the majority of cancer insurance policies will pay even if you're already getting health coverage under another policy, the reverse is not always true. A number of major medical policies won't pay out if you possess other coverage, such as cancer insurance.
• Is there a waiting period? Know how long you have to wait after a diagnosis before coverage takes effect. It could be 30 days or longer. Also check into if there is a maximum time period regarding coverage.

Cancer insurance policies may be purchased individually or, in some instances, through your employer's benefits program--in addition to health insurance. However, you won't be able to purchase a cancer policy if you already have cancer. An insurer may also charge added costs on the basis of your lifestyle or family health history.

The majority of cancer insurance policies pay out a lump sum benefit upon diagnosis. Some of them continue to pay for certain expenses, but others offer simply a one-time lump sum and then coverage ceases.

Take into account that your premiums will be higher if you seek a larger lump-sum payment or if you want the remainder of your family to be covered. Your premiums may also increase as you get older.

According to recent estimates by Wisconsin's insurance department, hospitalization for cancer accounts for about 78 percent of cancer-treatment costs and 13 percent goes toward physician services. The remainder goes to other professional services, drugs and nursing home care. There are additional non-medical expenses like transportation and rehabilitation.

According to the Consumer Federation of America, you're better off purchasing comprehensive medical insurance coverage and disability insurance to assist in paying for medical care and time lost from work due to any serious illness or injury. Remember that cancer insurance is not a substitute for a health insurance plan. If you or your family is without health insurance, now is the time to start comparing health insurance quotes.

But in the event of a cancer diagnosis, a cancer insurance payout could allow for a number of treatment and travel options that you perhaps wouldn't otherwise have been able to afford. Whether it's a "good buy" is ultimately up to you.

Another option to take into consideration is a critical illness insurance policy. This policy offers a lump sum payment for a number of conditions, from cancer to stroke to burns.

Most importantly, early detection and diagnosis are crucial to cancer survival.

Cancer insurance won't assist with detection and diagnosis. Research indicates that individuals who have health insurance are more apt not only to have early cancer detection but also a better survival rate.

According to The American Cancer Society, slightly less than one in two men and slightly more than one in three women will contract cancer during their lives. This means one in two men and two in three women don't.

For example, according to U.S. Agency for Healthcare Research and Quality data from 2006, at least 20,000 of the nation's 560,000 annual cancer deaths are uninsured patients. Researchers looked at previous medical records for five years and discovered that the uninsured were 1.6 times more likely to die in less time than those who were covered by private insurance.

Those who had less access to and use of cancer-screening services and other preventive care were at a greater risk, in addition to failing to seek follow-up after an abnormal screening result.