CONSUMER'SGUIDEA CONSUMER'S GUIDE TO
from YOUR North Carolina Department of Insurance
WHAT IS CANCER INSURANCE?
Cancer insurance provides benefits only if
you are diagnosed with cancer, as defined
by the terms of the policy contract. These
policies offer limited benefits for the diagnosis
and/or treatment of cancer. Most cancer
policies provide benefits based upon specified
health care costs and expenses incurred in
conjunction with the treatment of cancer,
though some policies may pay a lump-sum
benefit upon diagnosis. Cancer policies that
provide more comprehensive benefits and
coverages will cost more than policies with
limited coverage. In addition, premiums may
increase as you get older, or may increase if
total claims paid for consumers covered under
a company’s specific cancer policy increase
beyond the company’s expectations.
Cancer insurance is sometimes referred to as a
“specified disease” or “dread disease” policy.
Typically, policy contract provisions found in
this type of coverage are very specific and
limit benefits to narrowly- defined covered
illness and/or injury. Specified disease policies
generally exclude benefits for any disease or
sickness that is diagnosed prior to the policy
effective date. Examples of other specified
disease policies are heart attack or stroke
policies. Much of the information in this
document may be applicable not only to
cancer policies, but also to these other types
of specified disease policies as well.
DO I NEED CANCER INSURANCE?
If you are considering the purchase of cancer
insurance, it is a good idea to carefully review
your current health insurance policies and
determine how much coverage you would
receive from your existing health insurance,
if you were to develop cancer. If you do
not have comprehensive health insurance
coverage, you should consider purchasing
a more comprehensive health plan prior to
purchasing a cancer policy.
If you are covered under Medicare and
desire additional insurance protection