World Cancer Day, observed on February 4, highlights the growing burden of cancer and the need for financial preparedness. Cancer treatment in India is costly, but health insurance can provide crucial financial relief.

Why cancer insurance matters

Cancer treatments can be financially draining.

However, cancer insurance helps policyholders manage hospitalisation, chemotherapy, radiation therapy, and medication costs, reducing out-of-pocket expenses.

Ramit Goyal, Chief Distribution Officer, Future Generali India Insurance Company, said, “Cancer Day reminds us that critical illnesses impact both health and financial stability. Rising medical costs make health insurance essential to protect families and their future.”

Ashish Yadav – Head Products and Operations, ManipalCigna, said, “On average, a cancer patient may incur costs ranging from ₹5 lakh to 50 lakh and above, depending on the type of cancer, stage at diagnosis, and choice of treatment centre. To protect against the financial burden of such a critical situation, customers should opt for comprehensive health insurance coverage. The sum insured should adequately reflect potential treatment expenses, with many policies offering coverage ranging from ₹5 lakh to ₹1 crore.”

Types of cancer coverage

Cancer-specific insurance plans

• Covers early, major, and advanced stages of cancer.
• Provides lump sum payouts upon diagnosis.
• Covers diagnostic tests, treatment, and therapy costs.
• Some plans offer income benefits if the primary earner is diagnosed.

Critical illness insurance

• Covers multiple life-threatening diseases, including cancer.
• Provides a one-time payout upon diagnosis.
• Includes coverage for Parkinson’s, stroke, and organ failure.

Comprehensive health insurance

• Covers cancer but may have limits on total treatment costs.
• Requires careful review of sub-limits and exclusions.

What’s covered?

Cancer policies typically cover:

Treatment expenses – Covers both conventional and advanced treatments.

Lump sum payouts – Provided upon diagnosis to reduce financial strain.

Second medical opinion – Helps patients choose the best treatment plan.

Pre- and post-hospitalisation expenses – Covers costs 30 days before and 60 days after hospitalisation.

What’s not covered?

Cancer insurance may exclude:

• Pre-existing cancer conditions.
• Non-cancer-related treatments.
• HIV/AIDS-related complications.
• Prosthetics and non-medical tools.
• Claims within the first 4 months of policy issuance.

How to file a claim

To process a cancer insurance claim, policyholders must submit:

• Completed claim form.
• Medical report confirming cancer diagnosis.
• Hospitalisation records and discharge summary.
• Valid ID proof and bank details for claim processing.

A look at insurance policies available

Government support for cancer treatment

In Budget 2025, the government announced:

• 200 new day-care cancer centres in district hospitals.
• 10,000 additional medical seats, with a goal of 75,000 by 2030.
• 36 life-saving drugs added to the customs duty exemption list.
• 20,000 crore allocated for medical tourism under ‘Heal in India’ initiative.

Sandeep Nailwal, Founder, Blockchain For Impact (BFI), said, “Expanding medical research and strengthening primary healthcare through cancer centres will improve accessibility and affordability.”

Amit Ganorkar, MD & CEO, Tata AIG General Insurance, added, “Exempting life-saving drugs from customs duties and expanding cancer care will reduce the financial burden on patients.”

PN Arora, CMD, Yashoda Super Speciality Hospitals, Kaushambi, said, “The announcement of 200 daycare cancer centres in district hospitals in FY 2025-26 is a landmark decision in India’s fight against cancer. This initiative will  improve early detection and treatment accessibility, particularly in underserved regions.”

Holistic cancer care and wellness programs

Alongside insurance, wellness programs play a vital role in cancer care.

Greeshma M R, Spa Doctor, Niraamaya Retreats Surya Samudra, explains, “Our Ayurvedic wellness approach includes Rasayana Therapy, known for boosting immunity and supporting cancer recovery. Personalised herbal medicines, yoga, and energy-balancing techniques help promote long-term well-being.”