Monday, July 27, 2009

Cancer Insurance Plans

Specialized cancer insurance plans pay for portions of treatment that major medical insurance does not

Since the percentage of Americans who will someday be diagnosed with a form of cancer continues to rise each year, the potential for financial disaster can only rise right alongside it.

A properly structured cancer insurance policy can be a true life-saver for those people diagnosed suddenly and for those people without enough cash or credit to cover the portion of treatment expenses not paid by major medical insurance policies.

Function


The basic function of cancer insurance is to fill the sizable gaps in coverage that exist with most major medical insurance policies. Proceeds are paid directly to the owner of a cancer insurance policy, and can be used in whatever manner that person sees fit.

Cancer insurance policies are usually structured as line-by-line products, meaning that the policy owner is paid a specific amount for each and every occurrence of a particular form of treatment.

Features


Some cancer insurance plans have caps placed on the total aggregate dollar amount that the insurance carrier is willing to pay out, while other plans have no annual and no lifetime maximums.

Policies usually contain a list of the most common forms of treatment and services provided to and utilized by cancer sufferers, along with a fixed dollar amount that the carrier agrees to pay the policy owner when he receives each of those treatments.

The policy owner is responsible for providing the insurance carrier with a continually updated list of services rendered, and the company will continue mailing benefit checks as specified in the contract.

Misconceptions


Cancer insurance is not medical insurance, nor should it replace any existing major medical policy. These policies are referred to as supplemental coverage, indicating that they are not usually a person’s primary source of coverage.

Although cancer insurance policies are designed to pay for many services that are otherwise ignored by health coverage, the cancer plans also may not address some types of treatment.

Benefits


Anyone with a family history of cancer, high-risk lifestyle habits, or a job that exposes her to an increased risk of contracting cancer should consider purchasing a cancer insurance policy.

The policy will provide the owner with additional monetary benefits in the event of a diagnosis, and peace of mind knowing that a much greater percentage of treatment can now be afforded.

Benefit checks are usually mailed by insurance companies on a regular monthly basis, and some carriers now offer direct deposit or debit cards to members.

Warning


Cancer insurance is partially medically underwritten. Anyone who wants to purchase a cancer insurance policy must undergo at least a minimal amount of analysis by the carrier. This analysis does not typically include a paramedical exam or visit to a physician.

However, a series of health-related questions are asked about those individuals to be covered by the policy. The answers to those questions are the basis for the insurance carrier’s premium determination.

Not everyone is guaranteed coverage. In some instances, the insurance company may decline coverage to individuals who have been previously diagnosed with cancer, or who have a significant family history of invasive cancer.

References


Cancer Insurance

Resources (Further Reading)


Allstate Workplace Division




This article is a Twisted Nonsense Exclusive! (07/27/2009)

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