Recently a young lady came to our door selling “cancer” insurance. She had her spiel down quite nicely, however she didn’t know that I had worked in financial planning for 10 years. She really didn’t have a chance but I was respectful and listened, even though I wanted to jump in at several alleged “it’s a fact” claims.
Cancer insurance is advertized to cover expenses that your health insurance doesn’t include. So it may cover the co-payments on cancer treatments, pharmaceutical expenses, tests, and possibly wig expenses which some healthcare policies don’t cover. However, don’t assume your current healthcare coverage will not cover most of these expenses. Rarely does a reputable health insurance disqualify cancer treatment. Although, there may be some legitimate reasons for cancer insurance policies, I am more familiar with those which deny claims by disqualifying your type of illness. In other words, all the stars must line up; all the T’s crossed and so on. In some cases to qualify you must prove you are cancer-free at the time the policy is signed. This can be a slippery slope which allows the company to find enough evidence to deny your claim.
In addition to the narrow qualification windows, it’s important to know exactly what the cancer policy covers. Is there a minimum out-of-pocket expense to meet before your claim is reimbursed? What is the maximum coverage? Does the policy really save money in worst case scenarios? Compare policies and insurance companies online at Healthcare Finder and review the company’s complaints at Better Business Bureau. And most importantly, don’t buy right away. When a salesperson is pushing you to buy today due to a special offer or other incentive, consider this a red light- beware. Legitimate insurance companies allow time to review choices and consider the options. Ask the salesperson for an email address or phone number so you can call them back after investigating.
By adhering to these tips, you will drive the sell and buy only and if you really have a need for additional coverage to protect you and your family.