I read an article once casually dismissing the need for cancer insurance because most health insurance plans, it explained, already cover cancer treatment. The article dismissed its value, labeling it “specialty insurance” – as if the seriousness and debilitating costs associated with cancer were simply negligible.
The truth is that neither cancer nor the far-reaching financial burden it can create, is negligible or specialty. In 2024, over 2 million people faced a cancer diagnosis. The estimated national expenditures for cancer care in the United States in 2020 were $208.9 billion, and this number will only grow as expenses rise and new, expensive treatments are created.
Although it is a blessed truth that most health insurance plans do cover the cost of cancer treatment, the expenses associated with cancer beyond medical treatments covered by health insurance can be excessive and grossly overlooked. This is why having cancer insurance is important.
Medical Costs That Aren’t Covered
Beyond the coverage of cancer treatment by your health insurance plan, one must take into account medical costs that aren’t covered by health insurance. Some examples are rising deductibles, out-of-pocket maximums, and experimental treatments or prescriptions that are not covered by health insurance.
Costs of Living
When in the midst of fighting cancer with chemo or radiation treatments, many are not able to earn an income for months at a time, hitting those that are self-employed particularly hard. This loss of income will not be covered by health insurance and can present a major burden, especially for those supporting a family. Think about expenses like mortgage, rent, utility bills, childcare, grocery bills, transportation and travel costs associated with treatment. None of these costs are addressed by a major medical insurance plan.
Caregiver Costs
An often overlooked aspect of treating cancer is the financial effect it can have on caregivers, who also must take time off work to provide support, rides to and from treatment, and assistance with childcare. According to a 2021 AARP study, three-quarters of the family caregivers surveyed reported spending an average of $7,242 annually on out-of-pocket costs related to caregiving.
Cancer is a very serious disease with very serious financial implications extending far beyond the covered medical treatment costs. This is why cancer insurance can be well worth the additional $20-$40 per month. As with all insurance, it is a personal decision that must take into account several factors including personal risk. family history, and financial situation. As with anything, it’s always wise to be educated about a product before dismissing its value.
In summary, cancer insurance is typically a supplemental product paying a cash benefit that can be used for whatever the recipient chooses – unlike a health insurance plan where the recipient’s benefit is at the mercy of the health insurance company. For an epidemic wildcard like cancer, cancer insurance can prove to be a wise move.
If you’d like to discuss cancer insurance, schedule a time to chat.
