3 Reasons to Enroll in a Cancer Insurance Policy

Cancer is now the second-most-common cause of death in the United States. One out of every two men and one out of every three women will experience a cancer diagnosis within their lifetime. It’s nearly inevitable.

For those reasons, we encourage our clients to enroll in a cancer insurance policy. Today, we’ll review the three financial reasons to consider adding one of these plans to your insurance portfolio.

1. Out-of-Pocket Medical Costs

The most obvious reason to enroll in a cancer policy is to protect yourself from the out-of-pocket costs that come with a cancer diagnosis. Even if you have health insurance in place, it will probably not be enough to cover all your costs. Let’s look at examples concerning Medicare.

Medicare Supplement plans offer excellent medical coverage. There are about ten Medicare Supplement (Medigap) plans to choose from, so your out-of-pocket costs will depend on which plan you have. For example, if you are enrolled in Plan G, your only cost will be the Part B deductible. However, Medicare does not cover any experimental treatment. If you want to be a part of a clinical trial or other new treatment options, your cancer policy would be helpful.

If you are instead enrolled in a Medicare Advantage (Part C) plan, you’ll have more out-of-pocket expenses. MA plans have cost-sharing amounts based on the services you receive. In addition, you’ll pay more if you visit non-contracted providers. All Medicare Advantage plans have maximum out-of-pocket (MOOP) limits. Upon a cancer diagnosis, you should be prepared to meet that limit.

2. Prescription Costs

Most Medicare beneficiaries are enrolled in either a stand-alone Part D prescription drug plan or have drug coverage included in their Medicare Advantage plan. In either case, after a cancer diagnosis, your prescription costs will increase.

Most cancer patients are prescribed one to three different anti-nausea medications. While many of these are generic, they can still cost thousands of dollars per month. In addition, cancer medications alone can cost more than $10,000 per year. And, of course, these costs are on top of medications you may already be taking.

3. Indirect Expenses

Indirect costs of cancer treatment are something we don’t often consider. What exactly are “indirect” costs? Think about all the things you may need to pay for when undergoing cancer treatment. First, you may have travel expenses. This could include air travel, gas, hotels, and meals. You may also need to find someone to watch your children, your furry friends or have someone care for your home if you’re gone for extended periods of time. 

Many cancer plans we work with offer lump-sum payouts. That means that you purchase a policy, and it pays you the full face amount if you are diagnosed with cancer. For example, if you purchase a $20,000 plan, the carrier will pay you the full amount after the diagnosis. You are free to use those funds however you need. There is no need to submit multiple claims and file reimbursement requests.

Cancer policies are a low-cost way to give yourself some peace of mind. Some plans are as little as a dollar a day! Premiums are based on the benefit amount and the age you are when you purchase the policy.

To get a quote for a cancer insurance plan, call the Local Medicare Specialists. We can review your current plan if you have one and make recommendations based on your needs.