How does insurance cover cancer?
There’s no way around it: thinking about cancer, let alone talking about it, is neither easy nor comfortable.
But unfortunately, according to the Ministry of Health and the Cancer Control Agency*, as many as 25,000 people in New Zealand are diagnosed with the ‘Big C’ every year, and have to come to terms with the physical, emotional, and financial impact of that journey. The bright side is that one in three patients fully recover, largely thanks to timely diagnosis and treatment.
So, where does insurance fit in this picture? Faster access to healthcare on one side, and all-important financial support on the other. There are many options to choose from, and as we’ll see, an insurance adviser can help you understand how they relate to your needs and budget.
Here are some key things to know to get you started.
Shorter wait times and more treatment options
While our public healthcare system is great at treating us for urgent conditions, when it comes to health issues that haven’t been diagnosed yet or are not acute, the waiting times for diagnosis and treatment can add to the stress.
Unfortunately, this applies to cancer as well. We know how important it is to get an early diagnosis, but the news is full of examples of people waiting months for a colonoscopy or a gastroscopy – and potentially wasting precious time that could make a big difference to the outcome.
By giving you faster access to private healthcare, health insurance allows you to skip the line and get timely diagnosis and treatment. On top of this, depending on the policy you choose, you may even have some level of cover for Medsafe-approved, non-Pharmac funded treatments.
As you might have heard, New Zealand’s pharmaceutical-buying agency can only approve a limited number of medications within its budget, which means that some life-extending cancer treatments are not yet publicly funded.
Without health insurance, patients who want to access those treatments usually have to pay thousands of dollars out of pocket. Health insurance, on the other hand, might pick up the bill, with available limits ranging between $10,000 and $500,000 depending on the policy. Not all health insurance policies include this option, so you may want to talk to an insurance adviser before signing up: they can answer all your questions and talk you through the different benefits.
Financial support during challenging times
If you’re looking at protecting your future from then impact of cancer, health insurance is just one of the options to consider.
Trauma insurance (also known as ‘critical illness cover’) is a powerful protection policy, designed to pay out a tax-free lump-sum amount upon diagnosis of 40+ serious illnesses. The exact list depends on the policy, but cancer is one of the standard conditions that most trauma insurance solutions have in common.
The key thing to know about it is that you can use the lump-sum amount as you like. We all know that a cancer diagnosis can bring on a range of emotions and affect every aspect of life – including our financial health. Many people use the trauma payout to afford time off work, fund experimental treatments, or even book a much-deserved holiday with the family. This is what trauma insurance is all about: flexibility, choice, and peace of mind.
Lastly, income protection is another solution worth considering. It can replace up to 75 per cent of your gross (pre-illness) income for an agreed period of time, if you’re unable to work due to a serious accident or medical condition, including cancer. Once again, much-needed financial support to put your job on hold and focus on your recovery, while also keeping up with your financial commitments (e.g., mortgage repayments, everyday expenses etc.).
Like to learn more?
Looking for ways to protect your future? While no amount of insurance can prevent an unexpected medical event, it can minimise the financial impact and even put you on the fast track to recovery.
As we’ve just seen, there are different options available, each with its own terms and conditions. Quality insurance advice is about understanding your needs and goals, and recommending appropriate solutions: make sure you talk to an insurance adviser if you’d like to get clarity, and most importantly, peace of mind.
Like to get the conversation started? Click here to find a financial adviser specialised in Personal Risk near you today.
* Cancer Control Agency and New Zealand Government, The State of Cancer in New Zealand 2020 (released in 2021).
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.