Does Your Health Insurance Plan Cover Chemotherapy? Find Out

Cancer is a leading cause of death in India, with almost 14.6 Lakh cases being reported in 2022. ^[1] Chemotherapy is one of the most common treatments used to fight cancer. It is a complex and expensive treatment, and it can be financially draining for patients and their families. Many health insurance policyholders are usually under the impression that having the policy is enough to cover the cost of chemotherapy.  While the policy can provide a vital safety net for patients undergoing chemotherapy, in this article, we will learn if the policy covers chemotherapy.

 Chemotherapy and Health Insurance

Chemotherapy is a type of cancer treatment that uses drugs to kill cancer cells. Chemotherapy can be given orally, by injection, or intravenously. The treatment can be expensive and can have side effects such as nausea, vomiting, and hair loss. The cost of chemotherapy can vary depending on the type and stage of cancer, the drugs used, and the duration of treatment. As the cost of chemotherapy is expensive, it is not feasible for everyone to pay for the treatment out of pocket. In order to cover the cost of chemotherapy, you may consider a health plan. The health insurance plans for family extends to cancer as well. This includes the cost of chemotherapy. Any medication which is used to treat cancer is also covered by the policy.* However, it is important to note that the sum insured amount might get exhausted if the cost of treatment were to increase. To ensure that you have adequate coverage for chemotherapy, it's essential to read the policy document carefully and understand the terms and conditions. You should also compare policies from different insurance companies to find the best coverage at an affordable premium.

Which insurance should you go for?

Medical plans, such as health insurance plans for family, offer good financial coverage for medical emergencies. However, for a critical illness like Cancer, a standard health plan might not be financially viable. An alternative that you should consider is critical illness insurance. Here are some reasons how critical illness insurance can help against your battle with cancer:

1. Payment of the sum insured

One of the significant benefits of critical illness insurance is that it can help alleviate the financial burden on patients and their families when it comes to cancer treatment. Chemotherapy is a lengthy treatment and is often expensive. For this reason, it can be challenging for many families to afford it. Moreover, the compensation amount is paid in lump sum to the policyholder on the diagnosis of the ailment instead of having to claim after the treatment. *

2. Accessibility to quality healthcare

Another benefit of critical illness insurance is that with the sum insured, you get access to quality medical care. Chemotherapy is a complex treatment, and patients require specialised care from experienced medical professionals. This policy can provide access to a network of hospitals and healthcare providers that specialize in cancer treatment. This can ensure that patients receive the best possible care and support throughout their treatment.*

3. Tax savings on the policy

Purchasing critical illness insurance allows you to enjoy tax benefits on the premium paid towards the policy. Under Section 80D of the Income Tax Act, you get the following benefits:

1. Tax deduction of up to Rs 25,000 on premiums paid for self, partner, and children. Additional deduction of up to Rs 25,000 on premiums paid for parents under the age of 60 years.**
2. If the parents are above the age of 60 years, the tax deduction limit increases up to Rs 50,000. This allows you to avail a maximum deduction of up to Rs.75,000.**
3. If you, your partner, and your children are above the age of 60 years, the deduction limit is Rs 50,000. Further, an additional deduction of up to Rs 50,000 can be claimed on the premium paid for parents above the age of 60.**

You can purchase standalone critical illness insurance for yourself and your family as it offers protection from critical illnesses. Alternatively, you can bundle the policy with a regular medical plan to coverage for both critical illnesses and basic health treatment.*

Conclusion

While individual health policies and health insurance plans for family can provide a vital safety net for patients against medical emergencies, for critical illnesses, you must consider purchasing a dedicated critical illness insurance plan. Chemotherapy can be a financially draining treatment and a critical illness policy can help alleviate the financial burden on patients and their families. You may get in touch with an insurance agent to know more about the differences between the different types of policies and which one you should purchase as per your needs.   *Standard T&C apply ** Tax benefits are subject to change in prevalent tax laws Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.