an individual is first diagnosed with cancer, heart attack or stroke, his or her life is interrupted in many ways: physically, emotionally and economically. Employers demonstrate their concern for their employees who face such challenges by offering voluntary specified disease (including cancer) insurance. Such plans help an individual’s ability to maintain adequate earnings for everyday living expenses.
Benefits for voluntary specified disease insurance including cancer expense policies may be paid either through a lump sum or an annually restorable policy.
Premiums for lump sum policies do not increase with age and are typically payable until the policy is paid up at a specified age (or predetermined number of years), or until a claim is incurred. Often, specified disease lump-sum policies offer a return of premium rider, which allows premiums to be refunded if the policy remains continuously in force and no claim is paid during the term of the policy.
Lump sum cash payments typically allow benefits to be used for any purpose, including:
- To help offset the loss of income
- Deductibles, copayments and scheduled benefit limitations
- Treatments considered experimental
- Transportation expenses to and from doctors and treatment facilities
- Normal living expenses (mortgages, car payments, utility bills, child
-care, groceries, credit card bills, etc.)
Annually restorable policies help offset expenses incurred for treatment of covered diseases. Payments typically are more focused toward inpatient or outpatient services as well as supplies and treatments such as hospital room and board; drugs and medicines; laboratory services; and medical or surgical services.
Features of such plans may include:
- Annually restorable benefits
- Travel and wellness benefits
- Payment in addition to other coverage
- No deductibles
- Portable coverage
- Issue ages (often ranging from late teens to early 70s)
- Family coverage
- Guaranteed renewable for life