November 21, 2016

Cancer-specific health policy: Should you take it or not

Past one decade has seen significant changes in the healthcare industry of India. 
This is evident from the fact that the total spend on healthcare has been around 
5% of the GDP in 2013 and expected to maintain the similar level during 2016 as 
well. Every year around billions of dollars are being spent alone on the research 
on finding the best treatment for critical diseases. However, with the arrival of 
state-of-the-art technology and more effective medicines to counter critical diseases, 
the critical care treatment has seen a steady rise in the past few years.

Critical illness treatment
The burgeoning middle class and the lower middle class, which jointly forms 
a major chunk of India’s population are worst affected by this. With this steady 
increase in the cost of critical illness treatment in India, Indians are finally waking 
up to the fact that buying a health insurance is unavoidable.

Like most of them, you too might be one of those who think that you have your 
health risks covered when you buy a specific health insurance policy and opt for a
comprehensive critical illness cover. Usually the critical illness plans claim a cover 
on major illnesses or medical conditions such as heart attack, stroke, kidney failure 
etc. But have you ever checked if it covers the deadliest of them all, cancer?

Whether or not your health insurance policy will redeem your expenses at any stage 
if you were to be detected with a critical disease such as cancer? In all 
probability you might not have even given it a thought as the very mention of 
cancer can send a  shiver down your spine. Is it overcautious then to think of an 
insurance  policy, which is specifically dedicated to cancer even if you are perfectly
healthy today? Let’s  find some answers.

Rising incidences of cancer
Have you ever wondered how you will cope if you ever contracted this dreaded 
disease? It has been found that one in eight men and one in nine women develop 
some form of cancer during his or her lifetime. Most cancers are caused by the 
genetic changes that can happen anytime during a person’s lifetime as he or she 
ages. Even environmental factors such as tobacco, smoke or radiation can be a 
cause for cancer to happen.

Leading cause of death
Reports suggest that cancer is the leading cause of death in India with about 
1.5 to 2 million cases at anytime, out of which 7 lakh new cases are added every 
year with 3 lakh deaths. Studies by reputed organisations such as WHO suggest 
that by 2026 with an expected increase in life expectancy, the cancer burden will 
increase to about 14 lakh cases per year, which is exactly the double of the current 
figures. The number of new cancer cases in India is expected to increase by 70% by 
2035. Therefore, instead of believing in a myth that cancer cannot happen to you, it 
is better to be prepared in case it does happen to you unfortunately.

High treatment cost
Even though the government has taken steps to provide cancer medication at 
subsidised prices, still a back of the envelope treatment cost analysis shows that 
even in the early stages of cancer, i.e stage one or early second stage for head and 
neck, breast, lung, GI may cost anything between Rs 10 and Rs 12 lakh. Besides the 
actual cost of medication, various other factors like over the counter medication, 
prescription medication, specified dietary supplements, nursing care needed at 
home,  logistical cost involved while visiting the doctor, accommodation cost for 
self or the  person accompanying if visiting a hospital outside the city, one off 
purchases like  wigs, hair pieces, head coverings also add to the staggering cost 
of the treatment.  What is even more alarming that around 10-30% of the treatments 
fail or a relapse  occurs in the first stages of cancer, which almost doubles the 
treatment expenditure in some cases.

Unlike other diseases, early stage cancer patients might not require a hospitalisation 
and are treated more on an outpatient basis. That means that they have to regularly 
visit the oncologist while the treatment is on and follow the post treatment cycle of 
heavy medications, which definitely disturbs the routine professional life of a person.

Study suggests that most cancer patients face financial stress, sometimes hardship, 
by having to deal with massive extra costs, as well as a huge drop in income for 
many  patients at a time when they are going through the severe physical, 
emotional and  psychological impact of a very serious illness. A strong mechanism 
is, therefore,  needed to take care of your financial well-being while you undergo 
the cancer treatment and even after that.

Read between lines
There are chances that you have opted for a health insurance policy to ensure your
financial protection, but have you have ever thought if it is enough in case of a 
critical disease such as cancer? Some of you who are prudent enough might have 
even opted for a critical illness cover in a health insurance policy. But how many 
of you are aware about the definition of ‘critical’ stated in such policies. Such 
policies might give you temporary relief but are applicable only in the advanced 
stages of critical diseases such as cancer. Therefore, it becomes necessary to go for 
cancer-dedicated policies which are specially designed to suit the unforeseen 
financial needs that the dreaded disease might bring along.

Cancer-dedicated policies that are offered by a handful of insurers today offer 25%
of the sum assured to the policyholder on the diagnosis of the disease that takes 
care of the expenses at the initial stages. The amount is credited to the insured 
person’s  account immediately and all his future policy premiums are waived 
till the end of the policy term.

Under unfortunate circumstances where cancer is detected in more than one organ, 
20% of the sum assured is given for the treatment of each organ. In the advanced 
stages, a policy holder can claim up to 100% of the sum assured and even get an 
additional 10% of the sum assured for a period of five years as income. A cancer-
dedicated policy will provide a sum assured of Rs 20-25 lakh for a 30-year-old for a 
mere sum of Rs 4,500- 6,000 per year (on an average) for a term of 35-40 years, 
which is even lesser than the cost of a weekend road trip with your loved ones.

So if you are still thinking whether or not to opt for a cancer-dedicated product, 
the answer is yes. In case cancer does happen to you unfortunately, your timely 
financial management can ensure that while you focus only on fighting and 
winning the battleagainst the dreaded disease, your worries of being straddled 
with high costs of treatment are automatically taken care of.

Source: The Tribune

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