Cancer causes more than 500,000 deaths every year, making it the second leading cause of death in the US. Currently, 1 out of 2 men and 1 out of 3 women die of cancer. Due to these statistics, your employees will likely decide to discuss cancer insurance with you.
Should you get cancer insurance for your employees? Here are some essential factors you should evaluate, understand, and discuss first with your employees before offering any cancer insurance policy.
Health Insurance Coverage
Ninety percent of Americans have health insurance. Generally, most health insurance covers cancer and heart attack.
So, if you have health insurance in place, is it necessary? Yes, if and only if your current health insurance policy doesn’t have these coverages.
The point is to evaluate your health insurance first before making the decision. Read the fine prints of your current health insurance. Discuss it with your employees.
If you find that the policy includes cancer and heart attacks, use the money for other insurance riders. Alternatively, tell your employees to deposit their money in their emergency funds. Later, they can use this fund for out-of-pocket expenses during serious illnesses.
Supplemental, Not a Substitute
In case your employees still want to buy cancer insurance, remember these several things about the policy. Cancer insurance is supplemental coverage and not a substitute for your health insurance.
When you pay cancer insurance premiums, you’re insuring your employees for costs related to cancer treatment. Sometimes, the reimbursement won’t include all the treatment costs they might need if diagnosed with cancer. So, read and discuss the policy statement carefully with them.
An example is the MD supplemental insurance. This cancer policy allows your business to supplement the current health insurance for your employees.
Duplicate Insurance Coverage
One thing you would want to avoid is duplicate insurance coverage. Many insurance policies have a clause on the coordination of benefits. This clause means that insurance companies don’t pay for duplicate insurance benefits.
So, get cancer insurance with coverage that isn’t included on your employee’s health insurance. You don’t want to waste your employee’s money on the coverage they already have. Again, it all boils down to evaluating the fine prints.
How the Cancer Insurance Works
When you get cancer insurance, you have to remember these essential aspects.
One, coverage applies when you have cancer. Insurance coverage may either be a lump sum benefit or a percentage of the expenses for treatment. Either way, you must be diagnosed with cancer to get the benefits.
Two, some policies have a waiting period while others don’t. If you’re diagnosed with cancer during the waiting period, you’re only entitled to the premiums paid. No benefit applies.
Three, see if the policy covers pre-existing conditions or not. Coverage with pre-existing conditions will still entitle you to benefits. However, some insurance companies might charge you higher premiums than those with no existing serious illnesses.
Fine Prints in the Cancer Insurance Policy
Insurance policies always define the concept of illnesses to define what is covered as part of the coverage. So, make sure to read all the fine prints in the policy. You don’t want any surprises, for that matter.
Ask your insurance provider questions regarding the policy, inclusions, and reimbursement procedures. Check if there is any waiting period, how long it will be, and its limitations.
The important thing is to understand what you’re paying and what you expect to receive.
Again, cancer insurance is supplemental coverage. It is optional if you want your employees to have this policy. Usually, employees pay for the premiums through a deduction on salary.
Cancer insurance is a good thing to have, especially if your health insurance doesn’t cover cancer. However, if your health insurance already has this coverage, it’s best to spend the money on other insurance policies not included in your current health plan.
Also, remember that many insurance policies have a clause for benefits coordination. You don’t receive the same benefits twice.
If you and your employees decide to get supplemental cancer insurance, we can assist you. Schedule an appointment with us, and we will give you a detailed quote and discussion about this policy.
About Moody Insurance Worldwide
Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.