 Is
cancer insurance a good idea?
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 Dear
Dr. Don,
Is cancer insurance a good deal? My employer
is offering supplemental cancer insurance. -- Donita Decision
 Dear
Donita,
Cancer insurance is a type of specified-disease
insurance or dread-disease insurance. Most policies that cover cancer
may cover other diseases as well, so it's important to review the
policy to understand what diseases it covers. A specified-disease
policy is also different from critical-illness insurance, so make
sure you understand what the policy is designed to cover.
Policy benefits for dread-disease
insurance can vary widely. Benefit provisions are often a combination
of: per-day, or per-service, expense-based or a lump-sum benefit.
This type of policy may also offer a first-occurrence benefit for
a covered individual with a qualified diagnosis under the policy.
Before signing up for the cancer insurance coverage offered by your
employer, first make sure you have adequate medical and disability
insurance coverage in place. These comprehensive coverages form
the foundation for meeting your income and medical needs.
Spend some time discussing these
issues with your firm's benefit manager or the insurance provider.
Talk to your insurance agent to see what he can offer in these areas
as well. The National Association of Insurance Commissioners, or
NAIC, offers a Shopper's
Guide to Cancer Insurance that discusses this type of coverage
in greater depth.
Note: Thanks to Burton T. Beam, an insurance professor
at The American College, for his insight in helping me answer this
reader's question.
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