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with cancer insurance, there's traditional policies and lump sum policies

What Are the Two Types of Cancer Insurance?

Cancer insurance can provide money in the event of a cancer diagnosis. There are two types of cancer insurance policies, both of which can provide financial relief and access to lifesaving treatment. Let’s go over the two types of policies and discuss what they can provide.

Traditional Cancer Policies

Traditional cancer policies are sold in two common structures, expense-incurred plans and indemnity policies. Expense-incurred plans pay out a percentage of all treatment costs with a maximum amount of how much money can be dispersed to a single beneficiary in a specific benefit period. Indemnity policies disperse benefits more directly, paying a specified amount for every benefit stated in your policy contract. 

Lump Sum Policies

When you enroll in a lump sum cash benefit policy, you’re agreeing to a predetermined cash payment amount that will be paid to you upon providing your insurer with evidence that a licensed doctor has diagnosed you with a qualifying form of cancer. If you receive a lump sum cancer policy payout, you are free to spend the cash as you please and are not required to spend it on treatment. 

Which Insurance Policy Is Right for You?

When selecting an insurance policy, there are many things that should be kept in mind. One of the most important things to do is research. Finding out more about the policies sold by different insurance providers will help you in your decision and assure you that you’ve found the right one. Doing research is the only way to discover all your options and find the best one for your needs.

When selecting a cancer insurance policy, keep in mind the coverage that your health insurance provides. By taking this into account, you can gain an accurate picture of the coverage you’d be provided if you were diagnosed with cancer. Building from there, decide which cancer insurance policy will best suit you. If a treatment would be your priority after a cancer diagnosis, consider enrolling in a traditional cancer policy. That type of policy will most likely provide more long term options than a lump sum policy would. 

If you think that living life to the fullest and using your cancer insurance payout to travel or make your home accommodating would be your priority, then a lump sum policy may be the right choice for you. Because there are no stipulations about what the cash must be used for, you can make that decision for yourself. 

Trusted Senior Specialists: We’re Here When You Need Us

Regardless of which cancer policy you choose, we’re here to help you in the process. Call (855) 952-1941 to reach a trusted agent!