Although personal finance advisers may disagree on the level of coverage necessary, they generally consider health insurance to be a wise investment. After all, it often pays for itself with one lengthy hospital stay or expensive prescription. For younger individuals in better health, a high-deductible plan that covers catastrophic events may be recommended; they can then invest the savings in stocks or bonds. Others, who are older or more susceptible to health problems, will find that it makes more sense to have comprehensive coverage.
One type of insurance that they do not recommend, however, is dedicated cancer insurance. Consumer Reports are considered the experts in helping Americans make the best purchases possible. Throughout a recession that caused millions to lose their jobs, people have been dropping unnecessary expenses. According to the publication, cancer insurance is one of them.
Why is that the case? The authors consider cancer insurance to be redundant. Legitimate health insurance plans are very likely to cover most cancer treatments, whether they come from private insurers or Medicaid. This is true even of most bare-bones plans. A cancer insurance policy may even cancel out more generous coverage from the other provider! This is especially dangerous if the stand-alone cancer coverage only pays for hospitalizations.
Some policies may not even offer the peace of mind they promise. In several cases, certain forms of cancer (including types of skin cancer) are specifically excluded from coverage. The main benefit these critical illness insurance plans offer is that they often pay out an additional monetary sum, which allows patients to cover household and other expenses that health insurance does not. For example, the payout may allow a patient and his or her family to pay for travel and lodging to a leading treatment facility in another state. However, it should not be confused for medical coverage.
How much can someone save by forgoing cancer insurance? Consumer Reports predicts that the savings can reach up to $3,000 per year. For many individuals and families, this amount is significant.