Cancer Insurance Pros and Cons: An Honest Look Before You Buy

Key Takeaway

The main pros of cancer insurance are cash paid directly to you, help with deductibles and everyday bills, and low premiums when you buy young and healthy. The main cons are that it covers only cancer, has waiting periods and exclusions, and pays nothing if you are never diagnosed.

Key point: Cancer insurance is not major medical coverage and does not count as health coverage under the Affordable Care Act. It works alongside employer, Marketplace or Medicare coverage, never in place of it.

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Cash goes to you. Benefits are paid to you, not your doctors, so you can spend the money on a deductible, rent, groceries or a hotel near treatment.

Pays on top of other coverage. Most policies pay regardless of what your health plan covers, so the two payments do not reduce each other.

Covers non-medical costs. Travel, lodging, child care and lost pay are real cancer costs that health insurance does not touch.

Easy to get while healthy. Many individual policies use a short questionnaire and no exam, and issue ages can run from 18 into the late 80s or 90s.

Broker tip: At $20 to $40 a month, a policy costs about $240 to $480 a year. One covered claim can repay many years of premiums, but only if you pick a benefit large enough to matter. Our cancer insurance cost guide breaks down the price.

Find your gap. Add your health plan’s out-of-pocket maximum to two or three months of household bills.

Check what you already have. Look for cancer, critical illness or disability coverage at work or through a spouse.

Weigh your risk factors. A family history of cancer, a high deductible or a long drive to a cancer center all tip the scale toward buying.

Pick a benefit you can keep. A modest policy you keep for years beats a large one you drop after a year.

Compare carriers. Quote the same benefit at two or three companies and read each outline of coverage.

➤ What are the main pros of cancer insurance?

It pays cash directly to you, works on top of your health plan, and can cover non-medical costs like travel, lodging and lost pay. Many policies are easy to qualify for while you are healthy.

➤ What are the main cons of cancer insurance?

It covers only cancer, usually has a waiting period of about 30 days, may exclude or reduce benefits for some cancers, and pays nothing if you are never diagnosed.

➤ Is cancer insurance a waste of money?

Not for everyone. It can be valuable if you have a high deductible, little savings or a family history of cancer. It matters less if you have large savings and a low out-of-pocket maximum.

➤ Is cancer insurance better than critical illness insurance?

Cancer insurance is narrower but often cheaper. Critical illness insurance covers several conditions, such as heart attack and stroke, usually for a higher premium.

➤ Does cancer insurance replace health insurance?

No. It is a supplemental, limited-benefit policy that pays cash on top of your health plan. You still need employer, Marketplace, Medicare or other major medical coverage.

➤ Can I buy cancer insurance if I am on Medicare?

Yes. Many carriers sell cancer policies to people on Medicare. The cash can help with deductibles and the 20% Part B coinsurance if you do not have a Medigap plan.

➤ Are cancer insurance benefits taxable?

Benefits are often tax-free when you pay premiums with after-tax money. If an employer plan is paid pre-tax, some benefits may be taxable, so ask a tax professional.

➤ Can I get cancer insurance after a diagnosis?

It is difficult. Most policies ask about past cancer, and a cancer diagnosed before coverage starts is not covered. Buying while healthy is the best approach.

Cancer Insurance Quotes

Call a Licensed Agent Now

Compare cancer insurance plans and cash benefits from several insurance companies in one call.

☎ 1-888-891-0229

No obligation to buy