Cancer policies sold today vary widely in cost and coverage. If you decide to purchase
a cancer policy, contact different companies and producers, and compare the policies
before you buy. The following are some common limitations.
Some policies pay only for hospital care. Today cancer treatment, including radiation,
chemotherapy and some surgery, is often given on an outpatient basis. Because the
average stay in the hospital for a cancer patient is only 13 days, a policy that
pays only when you are hospitalized has limited value.
Many policies promise to increase benefits after a patient has been in the hospital
for 90 consecutive days. However, since the average stay in a hospital for
a cancer patient is 13 days, large dollar amounts for extended benefits have very
little value for most patients.
Many cancer insurance policies have fixed dollar limits. For example, a policy
might pay only up to $1,500 for surgery costs or $1,000 for radiation therapy, or
it may have fixed payments such as $50 or $100 for each day in the hospital. Others
limit total benefits to a fixed amount such as $5,000 or $10,000.
No policy will cover cancer diagnosed before you applied for the policy.
Some policies will deny coverage if you are later found to have had cancer at the
time of purchase, even if you did not know it.
Most cancer insurance does not cover cancer-related illnesses. Cancer or
its treatment may lead to other physical problems, such as infection, diabetes or
pneumonia.
Many policies contain time limits. Some policies require waiting periods
of 30 days or even several months before you are covered. Others stop paying benefits
after a fixed period of two or three years.