Disclaimer : Please Note
Disclaimer: The information on this page about Cancer Insurance is provided for general informational purposes only and is not intended to be financial advice. Every individual’s situation is unique, and for specific advice tailored to your personal needs and circumstances, we recommend scheduling a consultation with one of our Licensed Financial Advisers. They can offer a personalized review of your policy to ensure it meets your particular requirements.
Cancer Insurance
The No Frills Facts about Cancer Insurance
Cancer Insurance, sometimes known as Cancer Cover, is a specialized policy that provides financial protection in the event of a cancer diagnosis. The policyholder pays regular premiums, and in return, the insurance company pays either a lump sum or ongoing benefits, which can be used to cover medical and non-medical expenses associated with cancer treatment and recovery.
There are two main types of Cancer Insurance: lump sum policies and specialized health insurance policies.
Lump sum policies provide a one-time payment upon diagnosis, which can be used at the policyholder’s discretion. These policies often include an Early Stage Cancer benefit, offering partial payouts for less severe cancer diagnoses. Cancer insurance can be a standalone policy or it may be accelerated against a Life Insurance policy, meaning that the payout could reduce the Life Insurance cover.
Specialized health insurance policies, on the other hand, offer coverage for cancer treatment and related healthcare costs, including advanced treatments and non-Pharmac medications that may not be available through New Zealand’s public health system.
To qualify for a claim, the diagnosis must meet the policy’s specific criteria, and there may be waiting periods or exclusions for pre-existing conditions.
With the variety of Cancer Insurance options available, from lump sum payouts to specialized health insurance, it is wise to speak with a Financial Adviser to ensure you choose the best policy for your needs and financial security.
Policy Differences:
Cancer Insurance policies in New Zealand can differ significantly in terms of coverage, benefits, and structure. Some policies provide a lump sum payment upon diagnosis, which can be used for medical treatments or personal expenses, while others are more like specialized health insurance policies, covering the costs of cancer treatments, hospital stays, and medications. Lump sum policies often feature an Early Stage Cancer benefit, offering partial payouts for less severe diagnoses. In addition, some policies are standalone, while others are accelerated against a Life Insurance policy, meaning that any payout may reduce the Life Insurance benefit. Policy exclusions, waiting periods, and the range of treatments covered can vary widely, making it important for individuals to carefully review the terms or seek advice from a Financial Adviser to select the most suitable coverage.
The Risks of Incomplete Information in Cancer Insurance Applications
When applying for a Cancer insurance policy, it is crucial to disclose all relevant information accurately and completely. If a person fails to provide full disclosure of their medical history, lifestyle habits, or other material facts at the time of application, the insurance company has the right to cancel the policy, deny a payout, or even return the premiums paid. This is because non-disclosure can affect the insurer’s ability to properly assess the risk involved. In cases where it is discovered that key information was withheld, particularly during a claim investigation, the insurer may reject the claim altogether based on non-disclosure, leaving the policyholder or their beneficiaries without the expected financial protection.
What is not covered by Cancer Insurance (Exclusions)
When it comes to Cancer Insurance in New Zealand, certain aspects may not be covered depending on the policy. Pre-existing conditions are typically excluded, meaning if you have had cancer or related symptoms before taking out the policy, it’s unlikely to be covered. Some policies may also exclude early-stage cancers or certain types of cancers altogether, especially those deemed less life-threatening. There may be waiting periods, during which claims cannot be made after the policy starts, and ongoing cancer treatments or related conditions that develop outside the coverage period might not be included. Additionally, non-medical expenses like lifestyle changes, alternative therapies, or long-term care might not be covered under specialized health policies. It’s important to review the policy’s exclusions carefully or consult a Financial Adviser to understand the full scope of coverage.
Policy Add-ons:
With Cancer Insurance in New Zealand, policyholders have the option to enhance their coverage through add-ons and extra benefits tailored to their individual needs. One common add-on is the Income Protection benefit, which provides ongoing financial support if you’re unable to work due to your cancer diagnosis and treatment. Another useful option is the Waiver of Premium benefit, which ensures that your premiums are covered if you’re unable to pay them during your illness.
Some policies offer the ability to add coverage for other critical illnesses, providing a broader safety net for serious health conditions beyond cancer. Additional benefits can include coverage for non-Pharmac medications or overseas treatment, giving you access to more advanced medical treatments that may not be available within New Zealand’s public health system.
In some cases, you can also add a Family Support benefit, which provides financial assistance to help cover the costs of supporting family members during treatment. By customizing your policy with these add-ons, you can ensure a more comprehensive coverage, offering greater peace of mind during a challenging time. It’s important to discuss these options with a Financial Adviser to find the right combination of benefits for your situation.
Stepped and Levelled premium calculations:
You have several options for how often your premiums are reviewed. At the end of each review period, your premiums will be recalculated based on your coverage amount, age-related changes, and any updates to your insurer’s rates or relevant laws. Your premiums will also change if you adjust your coverage.
Generally, you can choose to have your premiums reviewed yearly, every 5 years, every 10 years, or at specific ages (65, 70 or 75).
If reviewed yearly, this is called “Rate for Age.”
Choosing a set period, known as “Levelled,” means premiums remain unchanged until the end of that period. You can also choose a mix of the two to suit your needs. Your adviser will work with you to help you choose the best premium review period or mix to suit your needs.
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Cancer Insurance FAQ's
Cancer insurance in New Zealand primarily comes in two forms: lump sum policies and specialized health insurance policies. Lump sum policies provide a one-time payout upon diagnosis, helping cover treatment costs and related expenses. Specialized health insurance policies, on the other hand, cover specific treatments and ongoing medical care, often including a wider range of services such as chemotherapy, radiotherapy, and support for non-Pharmac medication
Coverage usually includes major types of cancer, but specifics can vary by policy. Common exclusions may include certain early-stage cancers, skin cancers without metastasis, and pre-existing conditions. Always check the policy details for exact coverage
Yes, many providers in New Zealand offer customizable options for both lump sum and specialized health insurance policies. For instance, you can add coverage for non-Pharmac medications, family support benefits, or specific treatments not covered under standard health plans
Typically, most cancer insurance policies in New Zealand require a waiting period of around 90 days after the policy start date. For lump sum policies, the payout is usually made once a diagnosis is confirmed, while specialized health insurance policies may have different processing times based on treatment verification
Most cancer insurance policies have an age limit for new applicants, usually between 18 and 59 years. However, some policies may allow you to maintain coverage into your 60s
While most occupations are eligible for insurance, certain high-risk jobs may be uninsurable due to the nature of the work and the associated risks. Your adviser can help you understand the eligibility criteria and offer specific advice.
Given that everyone’s situation is unique, an adviser can assess your specific needs and provide research to explain why they recommend one insurance policy over others. They can also compare your current insurance coverage to ensure you are getting the best protection for the premiums you pay. Advisers are independent, allowing them to choose from various providers to best serve their clients’ interests. They are licensed by the government, have met educational standards, and participate in ongoing education to maintain their license. Their work is also regularly audited to ensure compliance with these standards.
Each provider has slightly different online questionnaires, but you will generally be asked about your health and lifestyle, age, occupation, height, weight, smoking/vaping status, gender, hazardous hobbies, family medical history and the amount of coverage you would like.
As you age, your premiums will rise, and your insured amount may also increase to keep pace with inflation (this adjustment is known as “indexation”). These factors contribute to higher premium costs. You do have the option to decline the annual indexation of the insured amount, which would result in a smaller premium increase. It’s important to consider this when budgeting for long-term coverage
Indexation means your coverage amount is adjusted each year to reflect inflation. For example, if your policy covers $100,000 and the inflation rate is 3% that year, your coverage would increase to $103,000. This process ensures that your coverage remains adequate as the cost of living rises. You have the option to opt out of this annual increase if you wish.
When you request a quote, it is based on the initial information you provide. Once you submit your details to the underwriters online, they might ask more detailed health and lifestyle questions to assess your risk factors. Depending on your responses, certain aspects of your health and lifestyle may be deemed higher risk by the insurer, which could result in an increase in the original quoted price.
During the application process for Mortgage Insurance, you will need to complete an online questionnaire. Answer all questions to the best of your knowledge and if in doubt refer to your medical records if needed. Incomplete or incorrect disclosure of information can result in the denial of future claims and the cancellation of your policy. Moreover, failure to provide all necessary details may lead to application rejection, potentially affecting if you would like to apply with other insurers. It’s also essential to notify your insurer of any changes in your health status before your application is approved.
Typically, medical examinations or blood tests are not required if there is nothing that you disclose from your medical records that would concern an insurance Underwriter. However, if you are asked to undergo either, there will be no cost to you. Most insurers offer a Health Screening Service, where a registered nurse can visit you at your home or office at a convenient time.
Smokers and vapers pay higher premiums than non-smokers. The good news is that if you quit smoking or vaping, your insurer will reduce the cost of your insurance. Once you have been smoke-free or vape-free for 12 months, you qualify as a “non-smoker” in the eyes of insurers.
Not a problem. If you decide you do not want the policy you can cancel it within 14 days of receiving your policy document (this is known as the “free-look period”). A signed cancellation letter is all that is required. Any premiums paid during the free-look period will be fully refunded to you.
You, your beneficiary, or your legal representative will need to call or write to your insurer (the contact details will be included in the Product Disclosure Statement of your policy), also your adviser can assist you. You’ll be sent a claim form to complete and return back to them, along with proof the insured event took place. Your insurer may also ask your doctor (if applicable) to fill out a form. If you want to make a claim on your policy, you should do so as soon as possible.