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What is Cancer Insurance? |
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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.
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