Antony Jacob
Moneycontrol Contributor
Recent technological advances have helped healthcare providers improve access to advanced treatments that are sophisticated but expensive. Consumers, who are now accustomed to living in a digital world, expect their health insurers to offer healthcare services beyond their standard insurance offerings. So, in tandem with transformative changes, the health insurance industry introduced similar products and brought accuracy and efficiency in addressing the healthcare needs of people. Still, there remains a stark requirement for the introduction of a new category of products to address the needs of present and future healthcare financing.
Today’s empowered customers are very judicious in spending their money on health insurance. They recognise the value of health and demand protection and savings of their investment. However, despite growing awareness of health insurance and the relationship of sedentary lifestyles with diseases, people are hesitant to buy health insurance. They consider health insurance an expense without tangible returns. Moreover, to claim the amount, one needs to fall sick!
A critical illness such as cancer is a serious health condition that has a debilitating effect on an individual’s life. The disease requires lifelong treatment costing lakhs of rupees. Cancer plans available in the market only pay a lump sum amount without any renewal option. Given the above reality, there is a need to have a better strategy for improving coverage in insurance policies for diseases such as cancer. We believe there is a huge need in the market for products that provide lifelong cover with lump sum benefits. It’s particularly imperative considering the rising number of cancer cases in India.
Rising number of cancer cases In India, 10 lakh new cases of cancer are detected every year, with over 7 lakh people dying from the disease each year. India is likely to have over 17.3 lakh new cases of cancer by 2020, as per projections by the Indian Council of Medical Research (ICMR). This is an alarming statistic.
Financial obscurity leading to emotional scars Apart from the patient, cancer is equally distressing for families. It could affect one’s family’s daily functioning and economic situation. The economic shock often includes both loss of income and increase of expenses owing to treatment and healthcare. The disease is associated with a lot of fear and despair. Since cancer care is long-term in nature, it also translates into a recurring expenditure and has the potential to wipe out a common man's entire life savings. The treatment is particularly devastating for families who are not covered under any health insurance plan. Such financial obscurity can leave them with deep emotional scars for life.
Healthcare inflation and increased cost of cancer treatment Given the medical inflation and diminished source of income, it becomes challenging for people battling the disease to afford treatment for cancer. The regular critical illness plans in the industry offer a lump sum amount and some offer plans with features such as cashless hospitalisation, critical illness coverage, and so on, but all these come with high premiums.
Therefore, it is important for insurers to contemplate reducing the premium load and offer lifelong coverage for cancer covers, especially after detection. This can possibly be achieved by a huge lump sum pay out of the sum insured that will cover future treatment expenses. Those who are looking for a high sum assured with a low premium will be attracted by adding features like lifelong coverage. Hence, there is an increasing need to work on products that appeal to the segment which cannot afford to pay for lifelong treatment.
New offering from cancer-specific plans Traditionally, critical illness (CI) such as cancer is covered under CI plans, but a lump sum payment is made only at advanced stages and the policy would cease. However, cancer treatment can take years. Since CI plans that cover multiple CIs, over and above cancer are considerably expensive, there is a need for a new category of cancer-specific products with specific features that stays with the patients and their family lifelong.
The plan should safeguard the patient from financial stress, right from diagnosis to post-treatment care, including advanced treatments. Moreover, it should be available at a lower premium so that more and more people buy it.
Considering that cancer can recur, mostly within the first five years of treatment, the new policies should cover lifelong treatment expenses, irrespective of the health status or claims. Currently, most plans that cover cancer do not give the option of policy renewal, in fact, the policy lapses with payment of the lump sum amount.
Conclusion Battling cancer of any kind requires financial strength besides courage and willpower. So, be wise and choose the right cancer insurance plan as per your need which will stand as a rock if, god forbid, you are diagnosed with cancer. It is a secure option to ensure you are covered when facing this critical condition.
The writer is CEO of Apollo Munich Health Insurance
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