A cancer diagnosis can change everything—your health, your routine and your financial stability. The cost of treatment, combined with the indirect costs of lost income and ongoing care, can be as overwhelming as the disease itself. Even with traditional health insurance, the expenses associated with treatment, travel and time away from work can quickly add up.
While you can’t predict a cancer diagnosis, you can take steps to help protect yourself and your loved ones against the financial strains associated with the illness.
The financial impact of cancer
The American Cancer Society estimates that about 1.8 million new cases of cancer are diagnosed each year in the United States. And while insurance, Medicare/Medicaid and other programs may cover many of the direct medical expenses of cancer, patients and their families foot the bill for an estimated $5.6 billion annually in out-of-pocket expenses.1
Direct cancer treatment costs
- Physicians and provider fees
- Surgery, radiation therapy, chemotherapy, and other treatments
- Diagnostic and imaging costs
- Hospital and emergency room fees
- Post-treatment service fees
Indirect cancer costs
- Loss of income
- Counseling
- Estate/legal planning
- Daily living costs: Parking, transportation, lodging, house cleaning, caregiving, child care, wigs, cosmetic items, etc.
The financial burden for patients can be staggering. The National Cancer Institute (NCI) estimates the average cost of cancer treatment per patient averages:
- $43,516 for initial care
- $5,516 for continuing care
- $109,727 in the last year of life
And these costs are projected to grow. The NCI estimates the total national cost of cancer in America will increase from $190.2 billion in 2015 to $246.6 billion by 2030.2
Protecting your finances
Health insurance plays an important role in covering cancer treatment, but it often comes with high deductibles and copays, and it may not cover many of the incidentals and other costs necessary for diagnosis and treatment. It also doesn’t cover the additional daily living expenses and loss of income you could experience.
Fortunately, some protection against these potential costs may be available through a product you may not have considered: life insurance.
Many permanent and group life insurance products include standard or optional “living benefits” that allow you to access a portion of your death benefit in advance upon diagnosis of a chronic or terminal illness. You may also be able to access your policy value through loans or withdrawals. The funds you access from your policy can be used for any purpose—including paying unexpected medical costs and other related expenses. However, these actions typically reduce the death benefit that’s passed along to your beneficiaries.
Symetra’s Cancer Care CompassSM, a new rider package comprised of the Cancer Insurance and Value Added Services riders, is now available with select Symetra indexed universal life insurance policies. For an additional cost, the riders provide a multi-cancer early detection test, health advocacy services, a cash benefit and nutrition intervention, guidance and support.
Here’s how one hypothetical customer used her life insurance policy to protect herself and her finances following a cancer diagnosis.
Case study: Meet Brenda
Brenda has a career she loves and a son who plans to attend college this fall. As a single parent and sole breadwinner, she’s been planning for this time in her life for years. Since her best friend died of cancer when Brenda was in her 30’s, she knew the importance of life insurance and being proactive about maintaining a healthy lifestyle.
Solution
After careful consideration, Brenda selected a Symetra indexed universal life insurance policy that helped ensure that her son could continue his education and her financial affairs could be taken care of should she pass. She also chose the policy’s optional Cancer Care Compass rider package that included a multi-cancer early detection test, health advocacy services, nutrition intervention, guidance, and support, and a cash benefit—that she could use however she chose—should she be diagnosed with a qualifying cancer. Since these benefits and services were separate from the life insurance policy death benefit, Brenda was also assured that receipt of the cash benefit due to a cancer diagnosis would not impact her policy’s death benefit.
This combination of benefits and services allowed Brenda to detect her cancer early and focus more on a successful recovery and less on her finances.
Additional protection options
In addition to life insurance, a variety of options may be available through your employer that can provide another level of protection. These include:
- Disability insurance: Helps replace a portion of your income when a qualifying diagnosis prevents you from working for an extended period of time. The payments you receive can be used for anything, from direct medical costs to daily expenses.
- Critical illness insurance: Provides a lump-sum benefit upon diagnosis of a covered medical condition—including cancer—that can be used to cover treatment costs, mortgage payments or anything else you may need.
- Hospital indemnity insurance: Typically pays a fixed dollar amount for each day of a hospital stay lasting 24 hours or more (up to a maximum number of days). The benefits can be used for any expenses you may have, whether medical or personal.
Protection and peace of mind
While no one can predict a cancer diagnosis, proactive planning with the right products can help offset treatment costs and protect your family’s financial future.
Additional reading:
Term vs. perm: Which life insurance is right for me?
Critical illness insurance: Protection at critical times
Hospital stays can be costly. Do you have a safety net?
Short-term and long-term disability insurance: Financial protection when you need it most
