Cancer Insurance: Understanding the Coverage You Need

Cancer insurance is a health insurance product designed to meet the costs of cancer treatment. There are some differences between policies: some cover only cancer, while others cover a range of serious diseases. Some will pay a sum if you meet certain conditions or need specific procedures, while other types of coverage, like critical illness insurance, pay a lump sum directly to you when you’re diagnosed with cancer. You’re free to use this money in any way you need. Traditional health insurance only covers certain procedures, doctors and costs, and often requires you to reach a certain minimum amount (a deductible) before it fully kicks in. 

Cancer coverage is often very affordable, and the payment, or benefit, can be used anywhere for anything. You can use it to help pay for travel costs, surgeries, experimental treatments, or even your mortgage while you can’t work. It’s a flexible way to make sure you have money to rely on in case of cancer. 

The way cancer insurance works depends on the type of policy you have. Some will pay a sum of money for specific costs: tests, surgery, chemotherapy, hospital stays or even hospice care. Other types, like critical illness insurance, will pay a sum upon diagnosis of cancer. Cancer insurance typically doesn’t have any restrictions on what you can do with this money.  

It’s important to know the limitations of your specific cancer insurance policy. Many, for instance, have a waiting period of a month or more after purchase where you won’t receive any benefits for a diagnosis. Policies also won’t pay for any pre-existing conditions, so it’s important to get coverage before well before you’re worried about having cancer. 

Once you receive a cancer insurance payment, you’re free to use the money however you wish. In some cases, you won’t receive this money until you meet certain conditions like getting chemotherapy. In others, like with critical illness insurance, you’ll receive the entire benefit payment upon diagnosis. Once you have this money, you can use it for specific cancer costs like radiotherapy, diagnostic procedures, ambulance services, surgery or in-home care. 

You can also use this money to help make ends meet while undergoing treatment. If you can’t work, you can use it to make up lost wages or stay on top of your car payment. You could use it for childcare while you’re receiving chemotherapy. You can even use it to take a nice vacation once you’re free of cancer – the choice is completely up to you. 

As mentioned above, there can be significant differences between cancer policies including extra benefits available. Some will pay a small amount of money for wellness exams and preventative checks for cancer. Some offer coverage for the entire family. Critical illness insurance, most of which includes cancer insurance, can go beyond just cancer and offer benefits for other serious diseases. Assurity’s Critical Illness Insurance covers four of the most common serious diseases and conditions: Cancer*, stroke, heart attack** and advanced Alzheimer’s Disease. It can help you protect yourself against the financial consequences of more conditions, but may not include benefits for wellness exams and preventative care. 

You should carefully research your options before making a decision and weigh the costs and benefits of each type of policy.

You can purchase a cancer insurance policy from your local insurance professional, or you can get coverage online or through your employer. There may be eligibility requirements for the policy you choose. For example, you might not be eligible for coverage if you’ve had cancer in the past or within a certain amount of time. You might be asked questions about your lifestyle or medical history. Depending on the policy you choose, you may need to answer just a few questions (like with Assurity’s Critical Illness Insurance) or fill out multiple pages of paperwork. 

To find the best policy for you, consider your circumstances and what you would need if you were diagnosed with cancer. Would you want your benefit to be spread out across treatment depending on what you need, or would you prefer a lump sum upon diagnosis? Do you want coverage for additional diseases? What about benefits for wellness exams? How much coverage would you need to meet your health insurance deductible, and how much are you willing to spend on coverage? Once you’ve answered these questions, you can find a policy that’s right for you.

Does health insurance cover cancer?

Traditional health insurance will cover cancer costs, but you will likely be exposed to out-of-pocket costs before it does. If you have a high deductible health plan (HDHP) you may need to pay thousands of dollars before your insurance will help with cancer recovery.

Is cancer insurance worth it?

Everyone’s individual situation is unique – but for many people, it would be difficult to pay for cancer costs out of their savings without incurring significant debt. If you’re unprepared to pay thousands of dollars out of pocket – sometimes for multiple years in a row – cancer insurance or critical illness insurance is a great option to consider.

Can you get cancer insurance after diagnosis?

No. Some policies will allow you to apply once you’ve been cancer-free for a certain amount of time, but if you’ve been diagnosed with cancer recently you will likely be ineligible for coverage. 

What is a cancer insurance policy called?

Policies that cover cancer can go by many names, including cancer insurance, critical illness insurance, specified disease insurance or dread disease insurance. It’s important to look at what each policy covers as there may be differences between each policy. 

What does a cancer policy cover?

Depending on the type of policy you choose, it may cover only cancer and cancer-related costs, or it may cover multiple serious diseases. Assurity’s Critical Illness Insurance covers cancer, heart attack, stroke and advanced Alzheimer’s Disease. 

Do cancer policies have a death benefit?

No. Cancer insurance is not a life insurance policy and will not pay upon death. 

Is there a waiting period for cancer insurance?

It depends on the policy you choose, but many cancer insurance policies do have a waiting period. In the case of Assurity’s Critical Illness Insurance, benefits won’t be paid for any cancer diagnosis within 30 days of getting the policy.

What does a cancer policy cost?

Cancer policy costs can vary depending on the coverage you choose, but it’s often very affordable – Assurity’s Critical Illness can cost as little as $10/month. You can get a no-commitment quote to see what your price is and get an idea how much coverage may cost.

Cancer insurance and critical illness insurance are similar, but there are a few key differences to keep in mind. Cancer insurance will pay you a lump sum for specified cancer-related costs, often when you require certain procedures. For example, you might receive a benefit payment for each chemotherapy treatment. 

Critical illness insurance pays a lump sum when you’re first diagnosed with any of a number of diseases – Assurity’s Critical Illness Insurance pays for heart attack, cancer, stroke and advanced Alzheimer’s Disease. If you’re looking for a policy that solely covers cancer expenses, then cancer insurance may be for you. If you’d like additional flexibility with the benefit payment and coverage for more diseases, consider critical illness insurance for your cancer insurance needs. 

Cancer insurance is often overlooked – but for those diagnosed with cancer or other serious diseases, it can be the difference between a stable recovery and medical debt. There are differences between policies that you should closely examine before making a purchase, but if you’re ready, Assurity’s Critical Illness Insurance is a great place to start. It can provide peace of mind, helping you know your finances are protected if you’re diagnosed with a serious condition. Ready to take the next step? See your personalized price and get a fast quote for critical illness insurance.

Additional disclosure information

LIMITATIONS AND EXCLUSIONS (may vary by state)

Pre-existing Condition. Pre-existing condition means a sickness or physical condition for which, during the 12 months before the issue date or last reinstatement date, the insured person received medical consultation, diagnosis, advice or treatment from a physician or had taken prescribed medication. No benefits will be paid for a critical illness that is caused by a pre-existing condition unless the date of diagnosis is after the policy has been in force for 12 months from the issue date or last reinstatement date.

Waiting Period. Waiting period means the 30 days following the issue date or ten days following the last policy reinstatement date. The date of diagnosis of a covered critical illness must be made while the coverage is in force and after any waiting period. No benefits will be paid if a diagnosis or a medical consultation that leads to diagnosis of invasive cancer or non-invasive cancer occurs during the waiting period. If cancer is diagnosed during the waiting period, benefits will be paid for a subsequent diagnosis of cancer if the insured person is symptom- and treatment-free for at least 12 consecutive months and in complete remission prior to subsequent diagnosis.

Misstatement of Age and/or Gender. If the insured person’s age and/or gender has been misstated, an adjustment in premiums, coverage or both will be made based on the correct age and/or gender. If, according to the correct age, the coverage provided by the policy would not have become effective or would have ceased, Assurity’s only liability during the period in which the insured person was not eligible for coverage shall be limited to a refund of premiums.

Misstatement of Tobacco Use. If, during the first two years of the policy, the tobacco status of the insured person has been misstated, Assurity will revise the policy’s benefit amount to the amount the premium paid would have purchased using the correct tobacco status on the issue date.

The policy will not pay benefits for losses that are caused by or are the result of an insured person:

• being exposed to war or any act of war, declared or undeclared;

• actively serving in any of the armed forces or units auxiliary thereto, including the National Guard or Army Reserve, except during active duty training of less than 60 days;

• engaging in hang-gliding, hot air ballooning, bungee jumping, parachuting, scuba diving, sail gliding, motor vehicle racing, parasailing, parakiting, mountain or rock climbing, B.A.S.E. jumping, sky diving or cave diving;

• being addicted to drugs or suffering from alcoholism;

• being intoxicated (as determined by the laws governing the operation of motor vehicles in the jurisdiction where loss occurs) or under the influence of an illegal substance or a narcotic (except for narcotics used as prescribed to the insured person by a physician);

• committing or attempting to commit a felony;

• being incarcerated in a penal institution or government detention facility;

• engaging in an illegal occupation;

• intentionally self-inflicting an injury; or

• committing or attempting to commit suicide, while sane or insane.

Policy Form No. I H1820 underwritten by Assurity Life Insurance Company, Lincoln, NE.

IMPORTANT NOTICE— CRITICAL ILLNESS INSURANCE PROVIDES LIMITED BENEFIT COVERAGE. It is not a comprehensive major medical plan or Medicare supplement policy and does not satisfy the requirement for minimum essential coverage under the Affordable Care Act (ACA). It is not a substitute for major medical insurance and may not be appropriate for Medicaid recipients.

This policy may contain reductions of benefits, limitations and exclusions. Click here for standard Limitations and Exclusions. Product availability, features, rates, limitations and exclusions may vary by state. The state specific policy form is the ultimate authority for any questions about this product.

*In some states, diagnosis of cancer during the first 30 days following the policy’s issue date results in a significant benefit reduction or policy cancellation. The percentage benefit amount payable for invasive and non-invasive cancer combined cannot exceed 100%.

**Heart attack does not include established (old) myocardial infarction occurring prior to the issue date, sudden cardiac arrest, cardiac arrest or cardiopulmonary arrest.

Assurity reserves the right to order, at the company’s expense, evidence of insurability which the company feels is necessary for the prudent evaluation of the risk.

Assurity is a marketing name for the mutual holding company Assurity Group, Inc. and its subsidiaries. Those subsidiaries include but are not limited to: Assurity Life Insurance Company and Assurity Life Insurance Company of New York. Insurance products and services are offered by Assurity Life Insurance Company in all states except New York. In New York, insurance products and services are offered by Assurity Life Insurance Company of New York, Albany, NY. Product availability, features and rates may vary by state.