Difference Between Cancer Insurance and Critical Illness Insurance Policy


Over time, a lot of developments have been made in the field of healthcare and medical science. But, it is also true that the cost of medical treatment is getting higher and higher with every year passing. When it comes to availing medical treatment for life-threatening diseases, one should be ready to shell out a huge amount of money from their pocket. In this regard, cancer is undoubtedly one of the most dangerous diseases of today’s times. Cancer is spreading at an alarming rate, not just in India but in other parts of the world as well. In 2018, more than 7, 80,000 people in India were killed by this deadly disease. There are many reasons why cancer disease is getting more common these days. Regardless of the reason behind it, it’s crucial that we must provide ourselves and our family members with the protection of a health insurance policy.

Just like cancer, a lot of people are also killed due to other life-threatening diseases, such as coronary heart disease. Cardiac diseases have already taken the lives of thousands of people in India. Lack of funds is one of the main reasons why so many people die from such diseases. In the treatment of critical illnesses, a lot of money is required. From the cost of surgery to ICU charges, there is no dearth of expenses.

For this reason, you must prepare yourself well for such kind of situations. This is where having a health or medical insurance policy can help you out. But, not just any health insurance plan. You need cancer insurance as well as a critical illness insurance policy.

Knowing about cancer insurance policy in India

When you buy a cancer insurance policy, you get the advantage of having a lump sum payment. In this case, the insurance company provides you with a big chunk of money, i.e. the coverage amount. Now, it is up to you to decide how to want to spend the money on the treatment. You can use the amount for hospitalization, surgery, chemotherapy, etc. The payouts are released according to the various stages of cancer, i.e. minor, major, and critical. Once the policyholder is diagnosed with cancer, the insurer will release the cover amount. Most of the health insurance companies cover almost all types of cancer diseases, such as prostate cancer, lung cancer, breast cancer, ovarian cancer, hypopharynx cancer, and stomach cancer.

So, is there any kind of exclusions in a typical cancer insurance plan? Yes, there are. Cancer caused due to biological or chemical contamination is not covered by most of the insurance plans. Some cancer insurance plans do not cover skin cancer too. So, you must go through the list of exclusions before buying the policy.

What are the advantages of buying a cancer insurance policy?

Well, there are tons of benefits of having a cancer insurance plan by your side. First of all, you get a lump sum amount for the treatment. The amount is released at different stages of treatment. In fact, you get a coverage amount for different stages of cancer. Some of the insurance policies also provide you with a fixed monthly income. It means, if you are the sole breadwinner of your family then it would be really helpful for your family to receive a monthly income till your cancer is cured.

Knowing about critical illness insurance plans

A lot of people think that having a regular health insurance plan is enough to get financial protection against all sorts of diseases. That’s not true at all. A regular policy will protect you against common diseases only, such as dengue, malaria, kidney stones, and arthritis. If you want to get financial protection against critical illnesses like heart attack, kidney failure, liver damage, and multiple sclerosis, in that case, you have to go for a critical illness insurance plan.

The difference between a cancer and critical illness policy

Well, a cancer insurance plan protects you only from cancer-related diseases, and not from other types of critical illnesses. Besides cancer, there is a long list of life-threatening diseases, and you need to safeguard yourself from them as well. Medical treatment related to heart attack, paralysis, kidney failure and other such types of illnesses can cost too high. Likewise, organ transplantation is also an expensive medical procedure. Only a critical illness insurance policy can provide you financial cover from these illnesses and medical conditions.

So, which one you should go for? It depends on a couple of factors. If your family has a history of cancer-related diseases, or you have the habit of smoking/chewing tobacco, you must buy a cancer insurance plan. On the other hand, if you are in your 40s or 50s, and you happen to be the sole breadwinner of your family, then you must go for a critical illness insurance policy. In case you are diagnosed with any critical illness, the policy will keep your savings intact. You will not have to worry about the financial security of your family members. At the same time, they will not have to struggle with the arrangement of funds at the time of your treatment.

So, these are the basic differences between a cancer insurance and critical illness insurance policy. Both of them are aimed at providing you with a sufficient amount of financial protection in such cases.