Cancer Insurance for Peace of Mind
by Graciela Sholander
A man worked for the public school system as a school administrator most of his life, with a good salary and solid health insurance. However, a year into his retirement, he was diagnosed with cancer. Despite being covered by insurance, he couldn’t meet all of the costs associated with his illness. The school held fundraisers to help him pay for expenses. Students, teachers, and parents pitched in what they could to help.
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This individual had some of the best healthcare benefits available. Even so, his coverage wasn’t enough to handle an unexpected critical illness like cancer. Why? Because of the many extra costs associated with treatment, which he was receiving at an out-of-state clinic specializing in his particular form of the disease. Travel and lodging costs alone were eating away at his finances at an alarming pace. Add to this the percentage of treatment and medical care costs not covered by his insurance plan, and it’s easy to see why the school resorted to fundraising to help a man who, through the years, had given so much of himself to the community.
Many people have adequate health insurance to cover routine exams and treatment for minor illnesses and conditions. But in the presence of a major illness like cancer, too many individuals and families are finding out the hard way that their benefits do not cover everything, and their out-of-pocket expenses run into the thousands, tens of thousands, and even hundreds of thousands of dollars.
“The number one cause for bankruptcy in America is for medical reasons,” says Monica Palser, an independent insurance agent representing Family Heritage Life Insurance Company of America. “While health insurance is certainly very important to have, it is not enough anymore. Usually there is 80/20 coverage, and when cancer occurs, the 20 percent is overwhelming, along with items that are not covered.”
“Where you get treated for cancer can also make a big difference,” she adds. “There are over 40 national cancer institutes. The problem is advanced treatments are expensive, and the indirect costs such as travel, lodging, and food can be significant.”
For these reasons, some people opt to get cancer insurance. Designated under the category of supplemental insurance, cancer insurance fills in gaps. Family Heritage Life has been offering this form of supplemental health insurance for years. Depending on the specific plan purchased, coverage can include radiation and chemotherapy, anti-nausea medication, bone marrow transplant, transportation and family member transportation, private nurse, and special treatments, among other benefits. Additional companies offering cancer insurance include Aflac, Colonial Life, Humana, and Mutual of Omaha.
“Our cancer insurance is available for those aged zero to 76-plus,” says Palser, “If you have had cancer and are cancer-free for 10 years, we can protect you. We have insured those in their eighties who say they will give a good fight if they get cancer.”
According to the American Cancer Society (www.cancer.org), nearly 1.5 million cases of cancer are expected to be diagnosed in the United States in 2009 alone. “In the U.S., cancer will affect one out of two men, one out of three women, and three out of four families,” notes Palser. Approximately 77 percent of all cancers are diagnosed in people over the age of 55, but cancer can strike anyone at any age.
The good news is that early detection leads to a higher chance of a cure for the patient. But lack of adequate insurance means that many people who suspect signs of cancer postpone or completely forego a visit to the doctor. With supplemental cancer insurance, financial considerations are taken care of – the person is able to focus on his or her health without worrying about the monetary burden a diagnosis might lead to.
Plans differ greatly from one company to the next, and even within each company many different options are available. A person’s particular scenario will affect premium costs and coverage availability, so it’s impossible to present a typical cost analysis. Your best bet is to talk with an insurance representative and find out what’s available.
“Our cancer coverage also has an ICU plan as a rider,” explains Palser. “We offer return of premium included with all plans, no lifetime limits on almost all benefits, first occurrence skin cancer benefit, and much more. Cost is determined by age and does not increase with age. Coverage is guaranteed renewable for life, and only you can cancel.
“In addition, we have a transportation and lodging benefit that pays both ways for the cancer patient and a family member, up to a certain amount based on the plan they choose. If the transportation benefit is used for a covered child, we will pay this benefit for both parents.”
Anyone at a greater risk of cancer should look into supplemental insurance. Even if you are not in a high-risk bracket, you may want to explore this option, particularly if your health insurance plan does not provide full coverage. Many existing plans are 80/20 or 70/30, and the 20 or 30 percent of direct costs you’re expected to pay in a major illness can be staggering. Add to the mix indirect costs of treatment, including travel, lodging, and meals, and it’s easy to see why far too many Americans go bankrupt because of health issues.
If you want greater peace of mind and better protection, cancer insurance might be the right option for you.
Graciela Sholander is a professional writer living in Fort Collins and author of Dream It Do It, www.dreamitdoit.net.