Do I really need to get Cancer Insurance from Mutual of Omaha?

Question

Would regular health insurance take care of most expenses if I ended up with cancer or, do I need to get that extra insurance policy?

Answer 1

Insurance companies (and many agents) love these types of plans because they are very lucrative for them. Unless you have a family history of cancer you'll do better spending the money on a better health insurance plan.

Answer 2

If you have or can obtain quality disability insurance, life insurance and health insurance, then, no, generally not.

But everyone's circumstances are different insofar as age, health, income, and occupational situations. If you have trouble getting traditional coverages (and Omaha's premiums are reasonable and the coverage is sound), then, well, a little extra money always helps.

Consult a trusted, qualified advisor, as always.

I can say also that in 10 years of advisory I never sold a customer a cancer or "dread disease" policy, nor did I ever work with or recommend Mutual of Omaha.

But again, everyone's situation is different, and I was very lucky to have lots of good companies, customers, and products to choose from.

Answer 3

No, you don't need cancer insurance.  Yes, regular health insurance should pay for your cancer treatment.

You don't want to buy a car insurance policy to protect you if you get in an accident with blue cars, do you?  That's what "cancer insurance" is like.

Answer 4

Your health insurance would cover the cost of cancer treatments. The supplemental policy might be used to cover expenses that are not covered by health insurance such as deductibles, lost wages and additional non-health related expenses i.e. travel & lodging for a spouse to accompany you.

That being said be very cautious if you decide to purchase the coverage. Some policies pay only for hospital care. Today cancer care treatment, including radiation, chemotherapy, and some surgery, is often given on an outpatient basis. Because the average stay in the hospital for a cancer patient is only 13 days, a policy which pays only when you are hospitalized has limited value.

Many policies promise to increase benefits after a patient has been in the hospital for 90 consecutive days. However, since the average stay in a hospital for a cancer patient is 13 days, large dollar amounts for extended benefits have very little value for most patients.

Many cancer insurance policies have fixed dollar limits. For example, a policy might pay only up to $1,500 for surgery costs or $1,000 for radiation therapy, or it may have fixed payments such as $50 or $100 for each day in the hospital. Others limit total benefits to a fixed amount such as $5,000 or $10,000.

Most cancer insurance does not cover cancer- related illnesses. Cancer or its treatment may lead to other physical problems, such as infection, diabetes, or pneumonia.

Many policies contain time limits. Some policies require waiting periods of 30 days or even several months before you are covered. Others stop paying benefits after a fixed period of two or three years.