Cancer treatment costs have risen by 81% in 5 years; how much coverage do you need?

The cost of cancer treatment is steadily rising. Between 2021 and 2026, the average cancer-related insurance claim surged by 81% to approximately ₹5.6 lakh. Given this trend, having adequate health insurance coverage is essential. Treatment has become expensive.

A serious illness like cancer impacts not only one's health but also the family's finances. With treatment costs constantly increasing, a health insurance cover of ₹5 lakh or ₹10 lakh may often prove insufficient. Between 2021 and 2026, the average insurance claim for cancer and tumor treatment stood at around ₹5.55 lakh. It rose from ₹3.1 lakh in 2021 to approximately ₹5.6 lakh in 2026.

Suppose the hospital bill for cancer treatment amounts to ₹5.6 lakh. If you hold a policy with a ₹5 lakh cover, at least ₹60,000 would remain uncovered. Additionally, there may be expenses that the insurance company does not reimburse due to policy terms and conditions, further increasing your out-of-pocket expenditure.

It is not just about surgery costs

The total hospital bill is not comprised solely of the surgery cost. According to reports, in cases of cancer and blood-related disorders, surgery accounted for about 32% of the total bill. Medication costs made up 16%, diagnostic tests 9%, and other expenses 18%. Therefore, when purchasing a health insurance policy, it is crucial to check for coverage regarding medicines, diagnostic tests, and other hospital-related expenses.

The average hospital claim in Tier-1 cities was ₹1.73 lakh, whereas in Tier-3 cities, it was ₹1.20 lakh. This indicates that the average cost of treatment in major cities was approximately 44% higher. According to Siddharth Singhal of Policybazaar, families living in metro cities might consider a total coverage of up to ₹1 crore by combining a base policy with a super top-up plan.

Young people should not put off getting insurance either.

The report indicates that 56% of claims originated from individuals aged 26 to 45. Therefore, delaying the purchase of health insurance simply because one is young is not advisable. When buying a policy, it is crucial to understand not just the premium, but also factors such as room rent limits, co-payments, deductibles, sub-limits, and exclusions (expenses that are not covered).

Most importantly, a "one-size-fits-all" health cover is not suitable for every family. One should periodically review the policy coverage, taking into account factors such as age, family size, city of residence, and rising medical costs.