Is cancer insurance worth it?

Updated: Aug 16, 2020

Cancer insurance offers financial preparedness for expenses that medical insurance doesn't cover, such as novel therapies, travel to specialized clinics, help around the house, and home health care. The calling for insurance is grounded in cancer's uniquely high indirect costs. In the category of novel therapies, for example, eleven of the twelve new cancer drugs approved by the FDA in 2012 cost more than $100,000 per year.*

The largest financial exposure faced by working adults with cancer is lost income. For purposes of income protection, lump sum cancer insurance is useful but limited since there are so many other health related reasons a person can lose income. If loss of earnings is the primary financial exposure it is important to first determine if the individual can qualify for additional disability insurance.

Since it only pays in the instance of cancer, the cost of cancer insurance is relatively low and easily determined. Pricing does not depend on personal health history, lifestyle, occupation and finances. With the risk factors so dramatically simplified, consumers can get on-demand proposals that are unlikely to be modified during the underwriting process. Click here for a cancer insurance quote.

* Source: The Economist; January 4, 2014; Hard Pills To Swallow; page 46