Cancer insurance
Benefits that help ease the financial burden while you heal
When you’re bearing the physical and emotional toll of a cancer diagnosis, the last thing you need to think about is the cost of cancer treatment. Medical insurance will help you pay for treatment, but recovering from cancer brings many unexpected expenses — and can have a significant financial impact on you and your family. Cancer insurance doesn’t replace traditional medical insurance — it’s supplemental coverage that helps with out-of-pocket costs, with direct benefit payments based on diagnosis and related treatments. That added financial support can help you focus your energy on beating the illness.
For employees
Read on to see how it works or ask your benefits department about cancer insurance options at work.
For employers
Offer cancer insurance coverage to employees as a way to complement their medical insurance.
More and more people are surviving cancer, but the unexpected costs can set back family finances. In some cases, they may even keep people from completing their cancer treatment. Is it worth signing up for this coverage? If you have a high-deductible health plan, a cancer diagnosis could mean thousands in out-of-pocket costs. Cancer insurance benefits can help pay for that. Also, anyone with a family history of cancer — and looking for added financial protection — should think about getting coverage.1
Items covered and benefit amounts vary, but each plan will spell out the specific cancer-related treatments and services covered, as well as the fixed-benefit amount paid. Covered items generally include some or all of the following:
Initial diagnosis
Radiation treatments
Chemotherapy sessions
Immunotherapy
Surgery
Hospital confinement
Cancer screenings
Out-of-pocket medical expenses can quickly add up, and there can also be significant non-medical costs, especially if the treatment center is far from home. The fixed-benefits are paid directly to you. You can chose to use them in any way you see fit to help pay for all kinds of costs:
Medical co-pays
Deductibles
Travel and lodging
Extra help at home
Child care
Pet Care
Household bills
Here’s an example of how it works
Mary had a cancer screening test and was diagnosed with breast cancer, which was highly treatable, in part because it was detected early on. She filed an initial claim with her group cancer insurance plan by contacting the insurance company and providing some simple paperwork from her medical provider. Soon after, the insurance company deposited a benefit payment directly into her bank account.
Over the next few months, her cancer was treated with surgery and medications. She sent the medical billing statements to her insurance company, and they provided more cancer insurance benefit payments based on specific treatments, medications, and follow-up screenings. The benefit helped ease her financial worries so she could focus on her journey back to wellness.
As a workplace benefit
Cancer insurance is often purchased at work as a "voluntary" (employee-paid) benefit to supplement group medical coverage, so ask your employer or HR department if this benefit is available as part of your benefits package. When you purchase coverage at work, you'll typically benefit from a simpler enrollment process, easy payroll deductions, and group rates that are not available to individual purchasers.
As an individual
If you do not have access to an employer-sponsored plan, there are insurance companies that offer individual cancer insurance policies. But before purchasing, make sure you understand the complete details of what's covered and how much the plan will pay for different diagnoses, tests, and treatments.
Critical illness insurance
Critical illness insurance provides a benefit payout if you experience a serious illness, such as cancer, stroke, heart attack, Parkinson's disease, and more. Because cancer insurance pays benefits beyond just the initial diagnosis, stand-alone cancer plans often times pay more than a critical illness policy.
Hospital indemnity insurance
Hospital indemnity insurance can help pay for out-of-pocket costs you incur as a result of a hospital stay for any reason, not just cancer. Fixed benefit amounts are paid directly to you based on admission and days hospitalized, and you can use the money you get to help cover any costs. If you also have cancer insurance, you can typically collect benefits from both policies for a cancer-related hospital stay.
Accident insurance
Accident insurance provides benefits if you suffer a covered accidental injury, such as a severe burn or broken bone, or have to visit an emergency room. It may also cover the diagnostic testing needed to determine if your bone is broken, like an X-ray. The lump-sum payment goes directly to you, not the hospital or medical provider.
Alternatives to supplemental cancer insurance
While not a true alternative, critical illness and hospital indemnity insurance (above) are often in conjunction with cancer insurance because they may pay benefits for many — but not all — situations covered by cancer insurance.
There are also other types of coverage you may want to consider. For example, certain life insurance riders, such as an Accelerated Benefit Rider, can pay a portion of the death benefit to help pay medical costs for certain chronic illnesses like cancer.3 On the other hand, if you’re concerned about losing income due to extended cancer-related or other illness — and want ongoing payments — you should look into disability insurance, and in particular, long-term disability insurance.
FAQ
Cancer insurance can be worth it for some individuals, particularly those with a family history of cancer or those who want additional financial protection. It provides benefit payments that can help cover out-of-pocket expenses, deductibles, and non-medical costs associated with cancer treatments—things that regular health insurance may not fully cover. The financial support it offers cancer patients during a challenging time can be valuable. However, the decision to get coverage depends on your personal circumstances, including your existing health coverage, financial situation, and risk factors. It's important to carefully consider your needs and compare the potential benefits with the cost of premiums before deciding if cancer insurance is right for you.
Cancer insurance policies typically cost between $20 to $90 per month. The exact cost can vary widely depending on factors such as the level of coverage, the insurance provider, your age, and your health status. Policies with higher payouts or more comprehensive coverage will generally be more expensive. Before purchasing, it is important to consider whether a policy offers the right balance of coverage and affordability for your specific needs.
Generally, it is difficult to obtain cancer insurance if you have already been diagnosed with cancer. Most cancer insurance policies require you to be cancer-free (or have no known diagnoses) at the time of application. When applying for cancer insurance, insurers typically ask about your current health status and cancer history. If you currently have cancer, you will typically be ineligible for a new cancer insurance policy. However, some providers may allow coverage if you've been cancer-free for a certain period, such as five years. It's important to be truthful about your medical history when applying because providing false information could result in denial of claims later on.
While specific terms vary by plan, cancer insurance policies typically do not cover the following:
Pre-existing conditions: Most policies won't cover cancer if you were diagnosed before purchasing the policy.
Non-cancer-related illnesses or injuries: These policies are specific to cancer and don't cover other health issues, like heart disease or stroke. Critical illness insurance covers those issues.
Certain types of cancer: Some policies may exclude specific types of cancer, such as nonmalignant -melanoma skin cancers.
Experimental treatments: Many policies only cover standard, approved treatments. However, you can use benefit dollars received for other items (like your initial diagnosis) to help pay for an experimental treatment.
Full medical costs: Cancer insurance is supplemental and not designed to replace comprehensive health insurance. It won't cover all or even most of the medical expenses related to cancer treatment.
Pre-cancerous conditions: These are often not covered.
Costs beyond policy limits: There may be caps on how much the policy will pay out.
As with all types of insurance coverage, it’s important to carefully read the policy details to understand exactly what is and isn't covered before purchasing cancer insurance.
Cancer Screening, Initial Diagnosis Benefit are optional plan choices determined by your employer.
Guardian’s Group Cancer Insurance is underwritten and issued by The Guardian Life Insurance Company of America, New York, NY. Products are not available in all states.
1 Survivor Views: Cancer & Medical Debt February 2022 Survey Findings Summary - https://www.fightcancer.org/sites/default/files/national_documents/survivor_views_cancer_debt_0.pdf
2 All scenarios and names mentioned herein are purely fictional and have been created solely for educational purposes. Any resemblance to existing situations, persons or fictional characters is coincidental. "
3 Riders may incur an additional cost. Riders may not be available in all states.