Are There Any Tax Benefits Associated With My Cancer Insurance Policy?
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Yes, cancer insurance policies in India can claim tax benefits under Section 80D of the Income Tax Act, but the benefit depends on how the policy is structured. If the cancer plan is classified as a health insurance or critical illness policy, the premium paid can be claimed as a tax deduction. Also, if your cancer cover is attached as a critical illness rider to a life insurance policy, only the rider premium falls under Section 80D. The base life insurance premium is under Section 80C, not 80D.
In many cases, the payout received from a cancer insurance policy is tax-free under prevailing tax laws.
Not only the policy but also the tax regime needed to be checked. Section 80D deductions are available only under the old tax regime. People choosing the new tax regime cannot claim these deductions.
Lastly, to claim tax benefits, the premium must generally be paid through non-cash methods such as UPI, card, net banking or cheque.
What Types of Health Insurance Policies Cover Cancer Treatment in India?
Many health insurance policies in India cover cancer treatment, some of them are:
Type of Policy | How It Covers Cancer |
Comprehensive Health Insurance | Covers cancer hospital expenses like surgeries, chemotherapy, radiation therapy, ICU charges, medicines and diagnostic tests. |
Cancer Insurance Plans | Specially created for cancer treatment and financial support. These plans can provide stage wise payouts as per the diagnosis. |
Critical Illness Insurance | Provides a lump sum payout after diagnosis of listed critical illnesses, including certain types of cancer. |
Family Floater Health Insurance | Covers cancer treatment expenses for insured family members under a shared sum insured amount. |
Senior Citizen Health Insurance | Includes cancer hospitalisation and treatment expenses for older adults. |
Employer Group Health Insurance | Many employers provide health insurance plans that include cancer treatment coverage for employees and their family members. |
Top-Up and Super Top-Up Plans | Help cover large cancer treatment expenses after the base health insurance coverage limit is exhausted. |
Term Insurance With Critical Illness Rider | Certain term insurance plans include optional critical illness riders that provide financial support after cancer diagnosis. |
Personal Accident and Health Combo Plans | Some combo insurance plans include limited critical illness benefits along with accident coverage. |
Can I Buy a Standalone Cancer Insurance Policy in India?
Yes, standalone cancer insurance policies are available in India. These plans specifically cover cancer treatment and financial support. Coverage includes:
- Early-stage and advanced-stage cancer
- Chemotherapy and radiation therapy
- Cancer surgeries
- Hospitalisation expenses
- ICU charges
- Diagnostic tests and scans
Are Follow-Up Scans and Post-Cancer Treatments Covered Under Health Insurance?
Yes, many health insurance and cancer insurance plans cover follow-up scans and post-cancer treatments. Coverage include:
- PET, CT, MRI scans
- Blood tests
- Follow-up consultations
- Chemotherapy and radiation sessions
- Recovery-related medicines
- Post-surgery treatment