Choosing the right financial shield against cancer is more crucial than ever, as treatment costs soar and the risk of the disease returning remains a stark reality. A standard health insurance policy, or mediclaim, now emerges as a significantly more robust option compared to standalone critical illness covers, especially for long-term protection.
The High Stakes of Cancer Treatment and Recurrence
The financial impact of a cancer diagnosis can be devastating. Kapil Mehta, co-founder of SecureNow Insurance Broker, shares a sobering anecdote: five of his friends, all health-conscious individuals in their 50s and 60s, were recently diagnosed with late-stage cancer. Their treatments cost over ₹30 lakh each, with one bill reaching a staggering ₹60 lakh. Such expenses, concentrated within a short period, can cripple a family's finances.
Compounding the cost is the persistent threat of recurrence. Cancer can return in the same organ or manifest elsewhere in the body. This fact makes the choice of insurance product critically important. Many critical illness plans have a fundamental flaw: they often lapse after the first claim is paid. This "one-and-done" structure is ill-suited for a disease like cancer, where ongoing vigilance and coverage are paramount.
Why Standard Mediclaim is the Superior Choice
In contrast to critical illness plans, a standard mediclaim policy is annually renewable for life, remaining active regardless of how many claims you make. This continuous coverage is vital for managing cancer, which may require treatment over many years. Modern health policies have also become comprehensive, with regulators mandating coverage for several advanced therapies including oral chemotherapy, immunotherapy, and select stem cell treatments.
When evaluating insurance for cancer, experts advise focusing on three key criteria: the range of cancers covered, coverage for recurrence, and overall claim reliability. On all three counts, standard mediclaim performs best. It covers most cancers using regulator-standard definitions, explicitly lists covered modern treatments, and guarantees lifelong renewability.
Building a Robust Financial Defence Strategy
So, how should you structure your coverage? Financial advisors recommend starting with a high sum assured. In metropolitan areas, cancer treatment can easily exceed ₹20 lakh today, and medical inflation could push this beyond ₹50 lakh in a decade. A strong base mediclaim policy should be complemented with a top-up plan to cost-effectively increase the total sum assured.
Critical illness or cancer-specific plans can play a supplementary role, providing a lump-sum payout upon diagnosis. However, they come with limitations like survival periods (typically 7-30 days) and inconsistent coverage definitions. They should not be relied upon as the primary safety net.
For a robust shield, combine a standard mediclaim with a top-up to achieve a total coverage of at least ₹20 lakh, ideally ₹50 lakh. The annual premium for this could be around ₹15,000 for a 30-year-old and approximately ₹25,000 for someone aged 50. This strategy ensures you are financially prepared to face the disease, not just once, but for a lifetime.
