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Term Insurance Plan for Cancer Patients

Cancer is a life-threatening disease, and being diagnosed with it is devastating. It is a real challenge to find a life insurance plan when someone is diagnosed with cancer. Hence, it is essential to buy term insurance with cancer cover or critical illness coverage that includes cancer. There are different types of cancer, and some of them are curable. However, the treatment needs a lot of money, which generally becomes difficult to afford.

To avoid financial blows, you should buy a term insurance plan early in your career. There are a lot of term insurance plans with critical illness coverage, including cancer and heart attack. Such plans will help the policyholder when they are diagnosed with the disease.

A critical illness cover may provide financial assistance when the policyholder is diagnosed with a disease like cancer. However, in most cases, it only works if the policyholder is diagnosed with the disease within the policy term.

How does a Term Insurance for Cancer Patients Work?

The cost of treating cancer depends on the type and stage of the disease, which may vary from person to person. Hence, there should be enough money for hospital bills, medicines, and other associated expenses. Term insurance plans have critical illness cover to manage the expenses when the policyholder is diagnosed with any of the listed illnesses.


So, it becomes easier to manage the finances when you have a policy. Read the fine print of the policy that you are planning to buy, as some policies only pay a portion of the expenses.

Benefits of Term Insurance Cover for Cancer Patients

While it is not possible to procure an insurance policy that can cover an individual who has already been diagnosed with cancer, it is possible to acquire critical illness coverage with your existing term plan.

Listed below are a few benefits of buying a term plan with a cancer cover:

  • Payout at the time of diagnosis
  • Waiver of premium
  • Tax benefits under Income Tax Act

Can you Buy a Term Insurance Plan After Being Diagnosed with Cancer?

There are two possibilities after the diagnosis - either you may look for buying a term cover right after your diagnosis, or you try to buy a term cover after treatment. We have covered both the scenarios below for easier understanding:

1. Buying a Term Insurance Plan after the Diagnosis of Cancer

  1. Buying a term cover while your cancer treatment is going on could be a challenge, as the insurer does not know the result of the treatment. In such a case, any of the following may happen:
  2. In the case of an early stage of diagnosis, the insurer may provide:

    • A general life cover with a higher premium cost, or
    • Offer to cover you financially against death due to all other hazards except the diagnosed cancer
  3. If the cancer is at a later stage, the insurer may assess your chances of survival based on the type of cancer and
    • Offer the term cover at a higher premium cost, or
    • Reject your proposal

    Needless to say, it doesn’t hurt to try and secure your family, even if a little late.

2. Buying a Term Insurance Plan after Cancer Treatment

After cancer treatment, your lifestyle changes a lot, and full recovery may take years. However, you need not wait for your full recovery to safeguard your family. Buy term insurance cover as soon as you can. Here are a few possibilities you should brace for while applying for term insurance coverage as a cancer survivor:

  1. Higher than Normal Premium

    The premium cost you came across on the online term insurance premium calculator is the cost for a normal life.

  2. Exclusions of Certain Conditions

    Few causes for demise may not be covered, including the treated cancer ailment.

  3. Exclusion of Certain Features

    The insurer may not allow features like critical illness or modify them to exclude specific cancers.

    This benefit may be modified as per your medical history before accepting your life insurance proposal.

How to Buy the Best Term Insurance Policy for Cancer Patients?

If one were to contract cancer, it would be a great help if they already have a comprehensive term insurance plan with a critical illness cover. In case of a family history of cancer, it would be mindful to have term insurance with cancer coverage. However, with certain policies, one may be subjected to a waiting period of a certain amount of time, before they can be covered. If the policyholder passes away before the completion of the waiting period, the nominee would generally receive the premiums that have been paid so far.

  • One should opt for a policy that covers most forms of cancer at varying stages, be it the early stages or advanced stages.
  • Expenses related to radiation therapy, hospitalization, chemotherapy, medical treatment, etc. via cash payment should be covered.
  • Coverage for the most common cancers such as lung cancer, breast cancer, ovarian cancer, etc. should be available.
  • Given the rise in medical inflation, one should opt for a plan with a sizable sum assured. The plan in question should offer a high amount of coverage, ranging from Rs.15 lakhs to Rs.50 lakhs.
  • Choose a policy that can be renewed after you reach the age of 65 or covers you beyond that age.
  • Some plans also offer waiver benefits. Look out for these plans as they waive off future premiums in certain cases while the policy remains intact.
  • Some plans also offer free cancer screening.
  • You can generally avail of tax benefits under Section 80D for such policies, subject to changing tax laws.

Four Things to Consider while Buying a Term Insurance Plan for Cancer Patients

As they say, hope for the best, and prepare for the worst. While cancer patients can opt for cancer term insurance policies, others (particularly those with a history of cancer in their family) can plan by opting for a term insurance plan with terminal illness coverage.

  • Read the fine print carefully. Some policies offer only 20-25% of the sum assured upon early diagnosis and the rest at a later stage.
  • Check if the policy excludes certain forms of cancer. Some policies would not cover, say, skin cancer, for example.
  • Cancer caused by sexually transmitted diseases is often not covered, and so is cancer caused by congenital activity and radioactivity.
  • Insurance for cancer patients will usually not cover other critical illnesses. Critical illness covers general policies that will usually not cover early-stage cancer.

As a cancer survivor, the insurer may demand a slightly higher premium for the increased health risk due to cancer. This rise should not be alarming though, as it will be minuscule compared to the size of the safety umbrella your family will have.

Rising Hope for Cancer Treatment

Advances in medical science have led to modern therapies and medications for the treatment of cancers. In most cases, hospitalization is not at all required for cancer treatment, if there is an early diagnosis.

Nowadays, even late-stage cancer treatments such as radiotherapy and chemotherapy do not require hospitalization. So, the chances of your survival after being diagnosed with cancer are high. Cancer or any other life-threatening disease is likely to put your focus back on the most important things in your life. Also, now you need to bring major lifestyle changes. Your financial matters will also change a little. Protective insurance covers and an emergency fund are even more critical after surviving cancer. Also, your family is at a higher risk of financial hardships in the case of your early death.

Thus, a long-term financial protection plan like term insurance becomes even more important after cancer. Even with all the exclusions and cost increments, term insurance cover remains the most reliable way of long-term financial safety for your family. So, wait no more, and apply for your term cover now.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

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