by: C.J. Dy
The statistics are alarming. The World Health Organization (WHO) predicts a 77 percent increase in new cancer cases globally by 2050. In 2022 alone, there were an estimated 20 million diagnoses, and that number could reach a staggering 35 million per year over the course of the next three decades [1]. These numbers underscore the urgent need for individuals and families to understand the risks and take proactive steps, including investment in appropriate insurance coverage.
The Financial Toll of Cancer
A cancer diagnosis is not only emotionally and physically devastating; it also carries a heavy financial burden. Medical expenses, including treatment, hospital stays, and medication, can quickly accumulate. Additionally, patients’ reduced capacity to work can lead to income loss, placing further strain on household finances.
A 2018 study in The American Journal of Medicine found that net financial costs of a cancer diagnosis averaged $89,252 per person in the United States within the first two years of diagnosis [2]. Another study conducted by the Fred Hutchinson Cancer Center concluded that cancer survivors were 2.5 times more likely to declare bankruptcy than those without a cancer history [3]
Insurance Options for Cancer Protection
Here’s a breakdown of crucial insurance coverage types that offer comprehensive protection in the event of a cancer diagnosis:
Critical Illness Protection: This insurance pays a lump sum immediately upon diagnosis of cancer or other covered critical illnesses, such as heart attack or stroke. You have the freedom to use the funds for anything from medical expenses and experimental treatments to childcare or maintaining household financial stability while focusing on healing.
- For individual critical illness coverage, check out Eventefi (https://www.eventefi.com/products/critical-illness-insurance/)
Term Life Insurance: This type of policy provides death benefits for your beneficiaries in the event of your passing. Some policies include accelerated death benefit provisions, allowing you to receive a portion of your death benefit early if you are diagnosed with a terminal illness or chronic condition.
- Eventefi offers individual term life insurance (https://www.eventefi.com/products/term-life-insurance/)
Income Protection: A cancer diagnosis may mean taking extended time off work, resulting in lost income. Income protection insurance replaces a portion of that lost income, helping you maintain financial obligations while focusing on your recovery.
- Eventefi also provides individual disability insurance policies (https://www.eventefi.com/products/disability-insurance/).
What sets these plans apart?
Many modern insurance plans include these important features:
Return of Premiums: If you never need to use your insurance coverage, you may be eligible to have your premiums returned to you, providing a sense of financial security.
Recurring Benefits: If your cancer goes into remission and then returns, some policies allow you to file a second benefit claim, offering continued support during your battle against the disease.
The Importance of Taking Action
Cancer doesn’t discriminate. Even with healthy lifestyles, the risk is always present. While the World Cancer Research Fund International estimates that at least 40 percent of cancer cases are preventable, there’s still a significant portion of unpredictable diagnoses [4].
Waiting to address this risk is inadvisable. Talk with a trusted financial advisor or insurance specialist to determine the best policies for your needs and budget. Investing in the right protections is an act of self-care for your future and your family’s well-being.
Don’t let fear stop you. With the right strategy in place, you can alleviate much of the financial burden that often accompanies a cancer diagnosis. Taking action now provides peace of mind amidst uncertainty.
Sources:
[1] World Health Organization, International Agency for Research on Cancer (IARC): https://www.iarc.who.int/
[2] Ramsey, S. et. al (2018). “Financial Insolvency as a Risk Factor for Early Mortality Among Patients with Cancer.” Journal of Clinical Oncology.
[3] Fred Hutchinson Cancer Research Center.
[4] World Cancer Research Fund International: https://www.wcrf.org