Cancer insurance can help offset the cost of care for those diagnosed with the second leading cause of death in the United States.
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Let’s take a look at what makes selling this supplemental coverage advantageous for agents.
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Raise Your Hand If You Know Someone Affected by Cancer
If you’re a baseball lover, you know that it’s time for the playoffs. Did you also know that former MLB player John Kruk and current star John Lester have both gone to bat against cancer and beat it?
Cancer does not discriminate. Top athlete or average joe. Young or old. Male or female. No one is out of reach of this deadly disease’s grasp.
Cancer does not discriminate. Top athlete or average joe. No one is out of reach of this deadly disease’s grasp.
According to the American Cancer Society, one in two men and one in three women will develop cancer during their lifetime. Chances are you personally know someone affected by cancer. Maybe they go to your church, or their kids play on your kid’s baseball team. They could even be a family member.
As an insurance agent, are you striking out on the chance to deliver peace of mind to a future fighter by helping them fund their battle against this lethal foe?
The Benefits That Cancer Insurance Can Provide
A 2018 study from The American Journal of Medicine found that individuals 50 or older with newly diagnosed cancers saw an average financial loss of $92,098. The same study found that 42.3 percent of people with cancer used their entire life’s savings and that financial insolvency occurred after four or more years for 38.2 percent. In addition to devastating a person’s health, cancer can also wreak havoc on their bottom lines. Cancer insurance can alleviate some of the financial burden those diagnosed with certain cancers face. It can also help fighters and survivors provide for and protect their families, no matter their age!
Cancer insurance can alleviate some of the financial burden those diagnosed with certain cancers face and help fighters and survivors provide for and protect their families.
Generally speaking, there are three main types of cancer policies (also known as “dread disease” policies): expense-incurred, indemnity, and first diagnosis or occurrence. The first two pay set amounts for covered medical expenses; the latter pays a lump sum, which can often be used for medical and non-medical expenses (e.g., monthly bills), upon the first diagnosis of cancer.
Here are some expenses a cancer insurance policy may cover:
- Copays and deductibles
- Out-of-network specialists
- Hospital stays
- Tests, treatments, and procedures (e.g., chemotherapy)
- Travel accommodations for patients and their loved ones
Considering If Cancer Insurance Is Right for Your Clients
When deciding whether to addtake the steps to sell cancer plans to your portfolio, determine if this type of ancillary cross-saletype of ancillary cross-sale makes sense for your clients and prospects.
By and large, cancer insurance is available to individuals 18 to 99 years old. Some carriers won’t issue policies to people who have been previously diagnosed or treated for particular cancers or other conditions, such as AIDS, AIDS-related complex, HIV, or Hodgkin’s disease. Additionally, many carriers who provide this kind of protection offer policies that pay out for cancers of internal organs, but not most skin cancers. And if your client is also at risk for a heart attack or stroke, they may be better suited for a cancer, heart attack and stroke product, rather than just a stand-alone cancer plan!
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For those with a family history of cancer and/or those who make lifestyle choices that can increase their likelihood of developing this dread disease, cancer policies can be worth every penny. And for the agents who sell them, these policies can merit much more.
Editor’s Note: This article was originally published March 2017. It has been updated to display information more relevant to 2020.