Mr Das is looking for an affordable cancer insurance policy to secure his finances against any expensive treatment that he might incur in future. However, he is unsure about his options owing to the number of policies available in India. To that end, he decides to compare cancer insurance policies online.
In this regard, he might use a cancer insurance premium calculator. A premium calculator such as this will fetch details regarding policy premiums and help him find policies offering adequate coverage depending on how much he prefers to spend.
Like Mr Das, if you plan to opt for a cancer insurance plan, you might want to consider reading the following piece.
Follow these steps to calculate your cancer insurance premium:
Given below are the factors that determine the premiums of cancer insurance plans:
Generally, the premium price rises with the age of an individual. This happens because older people are more likely to develop complications concerning cancer than youngsters.
This is a vital factor that determines your cancer insurance premium. Many medical research studies have shown that smoking increases the risks of cancer. Thus, one who smokes has to pay more premiums than a non-smoker.
People with pre-existing conditions have higher chances of incurring expensive medical treatments. Considering this, individuals with a history of complications need to pay more premiums.
The premium of a cancer insurance plan depends on the type of plan you choose. If you include your family members in a plan, you might get lower premiums compared to individual policies.
Your occupation is also an essential factor in determining cancer insurance premiums. For example, if you work at a nuclear factory and the likes, you are exposed to carcinogenic materials (cancer-causing) day in and out. Therefore, you might need to pay higher premiums on your cancer insurance.
Premium rates vary depending on your geographic location. Rates are higher if you live in an environment that lacks proper sanitation, healthy food etc.
Choose a plan with longer tenure
The premium amount paid for a single year is higher compared to a plan purchased for 2-3 years. Further, insurance companies offer discounts on cancer insurance plans bought for more than a year.
Select higher deductibles
An insured person needs to pay a certain portion of the claim amount called a deductible to activate their insurance plans. One can choose a higher deductible plan to lower the premium rates.
Opt for a family-floater policy
Individuals getting cancer insurance for their family can get coverage under the same sum insured. While choosing insurance plans for families, some insurers offer discounts on policy premiums.
Insurance providers offer a No-claim Bonus (NCB), that is, a discount on the policy premiums, to members who did not file for a claim in the previous year. By refraining from raising claims, one can accumulate these bonuses and lower their policy premiums.
Under Section 80D of the Income Tax Act, 1961, the premiums paid for cancer insurance are deductible from one’s taxable income. Individuals below 60 years can claim tax deductions up to Rs. 25,000 for premiums paid for themselves, family and children.
You can claim tax deductions of up to Rs. 75,000 for paying insurance premiums for self, family and senior citizen parents. For multiple family members above 60 years of age, you can claim maximum tax deductions of up to Rs. 100,000.
Now that you know about the tax benefits you can obtain on paying cancer insurance premiums, you might want to consider using an online cancer insurance premium calculator for easy evaluation.
Alternatively, you can get comprehensive health benefits by opting for Navi Health Insurance. The plan starts at an affordable EMI of Rs. 241 per month, and due to its app-based processes, you can get your cashless claims settled in under 20 minutes. Download the Navi app from Google Play Store and enjoy a wide range of health coverage.
Ans: The exclusions under most cancer insurance policies include:
Pre-existing condition for cancer
AIDS/HIV (except for related conditions such as ARC/AIDS-related complex, brain lymphoma etc.)
Treatment costs at hospitals outside India
Congenital external diseases
Cost of prosthetics and other devices
Ans: This insurance policy includes both minor and major stages of cancer. Thus, early-stage cancer and carcinoma-in-situ of any organ except the skin are included.
Cancer insurance plans also provide regular payouts at every stage for cancer remissions. Hence, if you pay 25% of the premium for an early-stage cancer diagnosis, some insurers will allow you to claim the amount in case cancer comes back and affects at a higher severity.
Ans: Critical illness plans cover a range of ailments, including cancer. It provides a lump sum amount for the first diagnosis of the condition. However, these plans only provide coverage benefits for advanced diagnosis of cancer. For early cancer diagnosis, the policy would not pay any compensation to the insured.
Alternatively, cancer insurance plans provide compensation for all diagnosed stages of cancer.
Ans: The lucrative benefits of cancer insurance plans include:
Wide range of coverage, including medical and day-to-day living expenses
Covers various stages of cancer
One can increase the sum assured amount by making no claims in a year or so
Individuals can pay a nominal amount for early diagnosis and pay the latter half in case of remissions.
Ans: Here are some factors to keep in mind while selecting an appropriate cancer insurance plan:
Claim settlement ratio
Payout amount on minor conditions
Other discounts and offers on premiums
Before you go…