World cancer day 2023 — Tips to select right insurance cover for the 'deadly disease'

World Cancer Day is observed every year on February 4 to raise awareness about cancer — a global health issue affecting millions of people worldwide. Cancer is still considered one of the leading causes of death in India, with its treatment costing quite high. However, the silver lining is that hospitalisation expenses related to cancer treatment are often covered by health insurance coverage in India and could lead to lower expenses.

These policies, though, might not pay for all cancer-related costs, which might aggregate to a substantial amount. Insurance experts, hence, advise customers to opt for specific cancer insurance plans which provide more comprehensive coverage for cancer treatment.

"One must have specific cancer coverage given the high costs of cancer care and treatment, especially if there has been a family history of the disease," said Ankur Nijhawan, CEO at AXA France Vie India Reinsurance Branch while talking exclusively to CNBC-TV18.com.

Cancer Insurance is a special type of a policy designed to offer financial assistance to those diagnosed with the disease after the free look up period mentioned in the purchased cancer insurance policy’s terms and conditions.

When selecting the coverage level for an insurance policy, one should consider the cost of diagnostic tests, chemotherapy, biopsy, and other treatments that may be required.

"This will help reduce prospective expenses due to the disease and any financial stress it may cause. It's also important to review the policy's exclusions and restrictions, which are often overlooked. It's crucial to thoroughly read the policy and understand its terms and conditions before signing up, as some plans may have restrictions on certain treatments," Nijhawan told CNBC-TV18.com.

When purchasing health insurance, one option is to add cancer coverage as a top-up to a regular policy at an additional premium rate. This can make it more affordable, as standalone cancer policies can have high premium rates.

"Having a separate sum insured for cancer in insurance policies, separate from the general sum insured, can also help customize the coverage to meet the policyholder's needs," Nijhawan said.

Nijhawan said that it's important to note that insurance plans specifically designed for cancer may have a pre-defined list of cancers that are covered, as specified by the insurance provider.

"Before enrolling in a plan, it's crucial to thoroughly review the exclusions list to ensure that any medical issue of concern is not excluded. It's advisable to consult the insurance provider with any questions you may have to find the best solution for you and your family members," he told CNBC-TV18.com.