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According to industry reports, after heart disease, cancer is the second leading cause of death in India. It is mostly because of the fast-paced and unhealthy lifestyles that most people nowadays lead, and hence, the incidence of this disease is set to increase.

Thankfully, this dreaded disease is treatable if diagnosed early. Even though there is no absolute prevention against cancer, industry experts say, following a healthy lifestyle may help. Having said that, with the increase in its incidence, the expenses for the treatment of this disease are also skyrocketing. In case the disease strikes, experts suggest, a proper cancer policy can soften the financial blow.

There are various types of cancer policies available in the market. For instance, standalone covers and critical-illness policies.

Standalone Cancer Covers
Standalone cancer covers include LIC Cancer Cover Plan. This cancer cover plan covers early as well as late stages of cancer. Experts say unlike normal health insurance plans, these standalone covers come with higher sum insured amount which is one of the main reason for opting for these plans.

Standalone cancer covers offer payouts at various stages of cancer. For instance, if the policyholder is diagnosed with cancer at a minor or early stage, the payout will be around 20-25 per cent of the sum assured, depending on the insurer. If the disease reaches a critical stage, the balance amount is then paid. Additionally, on diagnosed some of the insurers also waive off future premium payments under these policies. Standalone cancer covers also offer income benefit option. Under that, on the diagnosis of cancer at a major stage the insurer pays a monthly income equivalent to 1 per cent of the chosen sum assured for a period of 3 to 5 years. This benefit is also paid over and above the chosen sum assured by some insurers.

Critical Illness Covers
One can also opt for Critical Illness plans as an alternative for cancer covers. Unlike a standalone policy, these plans cover around 10-35 major ailments. The ailments, however, vary from insurer to insurer.

With critical illness cover, the insurance company pays the policyholder the amount for which they are insured, on a diagnosis of any disease on the policy list. Under this policy, stage-based payouts are not made, unlike cancer policies. Experts say with such lump sum amount, the patient can use it to take care of various expenses such as hospitalization, loss of income and expensive medicines, supplemental care/ nursing, which start from the first day of diagnosis and not at a later stage.

Premium
The premium of disease-specific standalone policies is lower than that of critical-illness covers, even with a similar sum assured. It is so because the disease-specific policies provide cover for only 1 disease. Industry experts say people depending on their employer’s group health policy should note that their policy comes with a lot of limitations. Group policies also tend to have a low sum insured as they are planned for a large group of individuals. Hence, having a supplement with an employer’s cover with a personal health cover or/and a critical illness policy or a disease-specific policy gives a comprehensive cover.
It is always this time of the year, i.e., the last quarter of the financial year when many individuals are looking for sound advice on financial planning. One significant option that most financial advisors will definitely suggest is health insurance. An adequate health insurance plan will not only secure you and your family during unforeseen circumstances, but it is also the wisest way to save tax.

Deduction under Section 80D
You can claim a deduction of up to Rs 25,000 per budgetary year for medical insurance premium installments. The premium should be for you, your spouse, and dependent children. On the other hand, if there is a chance that either you or your spouse is a senior citizen (60 years or above) the limit goes up to Rs 50,000. Medical insurance premium paid for guardians additionally qualifies for deduction up to Rs 25,000 every year. If your father or mother or either of them is a senior citizen, the maximum limit goes up to Rs 30,000 a year. You get deduction on preventive health checkups annually. You can avail up to Rs 5,000 for the cost incurred for preventive health checkups.

Super senior citizens
If your father is a super senior citizen and mother is a senior citizen with no insurance, you can claim a tax deduction of Rs 30,000 towards medical treatment for guardians, medical coverage and registration of both guardians.

Deduction under 80DDB
You can claim deduction up to Rs 1.4 lakh (Rs 60,000 for senior citizen and Rs 80,000 for super senior citizen) for medical expenses incurred for determined ailments. For example, cancer, chronic illness, renal failure, etc. It can be claimed for spouse, siblings, guardians and children.

Deduction under 80DD
You can claim the benefit up to Rs 75,000 based on the expense incurred for nursing, training, medical treatment, preservation, and rehabilitation for a dependent with special abilities disability (up to Rs 1.25 lakh).

Deduction under 80U
In case of a family member or self with special abilities, you can claim benefits of Rs 75,000. In case of severeness of the disability, it can be claimed up to Rs 1.25 lakh.

Recognized as a key international awareness day on the global health agenda, ‘World Cancer Day’ is observed across the globe on the 4th of February every year. Founded to unite the world in its fight against Cancer, the day aims to help save millions of preventable deaths by raising education and awareness while encouraging individuals, communities, and governments far and wide to take necessary action. With COVID-19 impacting every aspect of life and resulting in widespread health deterioration, there is a sense of urgency when it comes to medical care and ensuring physical wellbeing. It is, therefore, crucial to remain aware of the disease, the primary possible causes of Cancer, and the perceived threat to make necessary alterations.

Understand what triggers Cancer
Often described as a “battle” that one has to “fight” to survive, the threat of Cancer looms large in our lives. However, do we even know what triggers Cancer? With changes in socio-economic patterns across the globe, lifestyle and dietary habits have undergone significant change. Smoking, high-fat diet, and engaging with toxic chemicals are some examples that may be risk factors for some adult cancers. While a risk factor is not necessarily responsible for the disease, it may make the body less resistant to it. It is, therefore, crucial to familiarize oneself with the risks and triggers and take appropriate action in line with that.

A healthy lifestyle and regular medical care can go a long way The most common kinds of Cancers i.e. oral, lung, and colorectal, are primarily caused by high tobacco consumption and poor overall bodily health making it even more important to make conscious lifestyle changes that ensure prevention on time. Maintaining a healthy weight can lower the risk of various types of Cancer, including Cancer of the breast, prostate, lung, colon, and kidney.

It is therefore important to include certain food types especially cruciferous vegetables in the diet while also steering clear of tobacco consumption and remaining conscious of maintaining good health by indulging in Yoga and regular exercise. A collective combination of these has been proven to break clusters of mutated cells down into biologically active compounds reducing the risk of Cancer to a larger extent.

Furthermore, one must also make regular medical screenings a priority that aid in early detection of the disease, helping increase the chances of treatment and recovery.

Ensure appropriate financial protection
Ensuring financial protection in the face of Cancer is critical because depending on the type, stage, and complexity, Cancer treatment costs can easily run into a few lakhs rendering the patient and his/her family financially drained. As per a recent survey, it was found that in the backdrop of Covid-19, 25% urban Indian respondents, as opposed to earlier 19% respondents (pre-pandemic), thought about critical illness preying on them. In comparison to 18% (pre-pandemic), a higher 25% had the realization of death and thought about the financial stability of the family in case of the untimely death of the breadwinner. The same points towards evolving financial prudence of the population.

Consider a robust life insurance policy with Cancer cover A life insurance policy with a Cancer cover is one of the best ways to ensure one’s family is protected from the financial burden of this disease and that the eventual life goals are safeguarded.

One must be cognizant of the fact that good Cancer treatment in the best hospitals comes at a cost. While a typical health insurance policy is merely limited to hospitalization expenses and reimbursements, here is where, a standalone Cancer life insurance policy helps with a lump-sum amount to cover medication, post-treatment, etc. providing the affected family with much-needed financial stability.

Offering a new lease of life, a standalone Cancer life insurance plan serves to reduce the financial trauma that one may experience in the shortage of adequate funds for recuperation and post-hospitalization care, which could typically last 3-5 years.

Keeping these points in mind, and aligned to the World Cancer Day theme of ‘I Am and I Will’, let us resolve to take meaningful action by recognizing what we can do to safeguard ourselves against the disease and take prudent steps in that direction.

Life insurance is a major component of financial planning as it is a wonderful tool for providing financial protection to oneself and to one’s loved ones. An investment or savings gives assurance when the targeted amount is assured for the dependants with the very first instalment of the savings paid as premium. If unfortunately he or she leaves them behind, the insurer steps forward to provide them financial support. Buying and maintaining a life insurance policy is a serious business. All the steps taken in this regard require serious attention. Life insurance is purchased throughout the year. But during the last quarter of the financial year it is sold mostly as a tax saving investment. Traditionally life insurance has been the most prominent among the savings listed along with other savings schemes that qualify for tax deduction under Section 80C of the Income Tax Act. But rushing to invest in a life insurance product with the prime motive of saving on tax is fraught with serious implications.

Long-term contract
By investing in a life insurance policy one commits to a recurring payment for a fairly long time. Exiting a policy contract, after the cooling off period as provided by the insurance regulator, is almost impossible though one can surrender the policy after keeping it in force for a certain number of years. But that is possible only with a very heavy discount on the amount paid or deposited till the date of surrender. Hence surrender of a policy or terminating an existing commitment to invest every year for saving on taxes will never be a wise option if one comes across a more attractive tax saving instrument. Therefore before entering into a policy contract one should spend time to evaluate all other tax saving options and allocate one’s fund to two to three such schemes.

Individuals must make a clear plan for investing in schemes such as tax saving fixed deposits, mutual funds or PPF. After due consideration of all options if someone decides to invest only in a life insurance policy for the purpose of saving tax under Section 80C, in view of his or her family responsibilities, such a decision may prove to be correct as well as prudent. However, those vast majority of people who get trapped by unscrupulous intermediaries in their anxiety to maximise saving of taxes need to be careful.

Diversified portfolio
Insurance serves a unique purpose but for achieving that purpose one need not for sure invest all the eligible amount for tax saving in life insurance only. By buying a bouquet of different insurance plans with far less premium, one can achieve similar long -term protection or benefits. Ideally one should have a diversified portfolio of savings schemes for maximising growth of one’s disposable fund and also for achieving different life goals.

The life insurance companies also need to act responsibly while promoting their sales during the last quarter of the financial year. They need to train their sales force not to encash on the anxiety on the part of the people to save on taxes. Covid-19 has taught enough lessons to people on the importance of life and health insurance.

The industry is poised to achieve accelerated growth if sensitivity to insurance impacting the market today is not allowed to fritter away. But this would require unconventional thinking at the top while setting strategies for marketing life insurance to almost all the segments of the society. Encashing on people’s anxiety or even on their ignorance for selling policies in the last quarter, popularly known as the JFM, is not only an irresponsible act but also an immoral business strategy.
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.