Supplemental Cancer Insurance Facts: 5 Things You Should Know

Summary: Supplemental cancer insurance can be a crucial addition to your primary health coverage that can help alleviate the financial burden of treatment. It covers expenses that standard health policies often overlook, such as deductibles, copays, travel and lost income due to time off work. Learn five key things you need to know about this important coverage.

Nobody wants to hear the words “You have cancer.” But approximately 40% of men and women in the U.S. will develop some form of cancer during their lifetime, and it’s the second most common cause of death in the U.S., according to the American Cancer Society.¹

Yet few people realize the extent of the costs involved in cancer treatment or understand that basic health insurance doesn’t cover many of these costs. While almost no one likes to think about cancer and the havoc it can wreak in the lives of patients and their families, the fact cancer affects so many of us is a good reason to understand cancer insurance and how it can help offer financial protection.

Understanding cancer policies

Thanks to medical advancements, more people are surviving cancer, but the costs of survival can be high. As health care premiums continue to rise and treatment costs increase, many individuals and families are feeling the strain of out-of-pocket expenses.

Additional cancer insurance empowers clients to handle unexpected expenses their primary insurance may not cover, such as high deductibles, travel for treatment, lost income or even childcare.

Five things to know about supplemental cancer insurance

Supplemental cancer insurance can help supplement health insurance.

Cancer insurance isn’t intended to take the place of the benefits provided by your primary health insurance. One purpose of cancer insurance is to help you pay for some of the expenses your primary health insurance policy may not cover.

Supplemental cancer insurance coverage varies by plan.

To understand supplemental cancer insurance, you first need to understand the hidden costs associated with treatment. These might include:

• Lost income due to taking time off work for treatment
• Out-of-network treatments when necessary
• Health insurance deductibles and copays
• Travel (sometimes long distances) to receive treatment
• Hospice care

Coverage can vary from one cancer insurance plan to another, so it’s important to check with plan providers to see exactly what their plan does and doesn’t cover.

There are typically two types of supplemental cancer insurance.

Cancer insurance wasn’t designed to replace traditional health insurance but to complement it by paying for treatment-related expenses not covered by the policy. There are two common ways cancer insurance policies work:

With some plans, if you’ve been diagnosed with cancer you’ll receive a single lump-sum payment, which you can use for both medical costs and normal living expenses. You essentially use the money any way you choose to help cover lost wages, deductibles and copays.

Cancer expense policies help provide coverage for cancer-related expenses above and beyond what your primary health insurance policy covers. What’s covered can vary widely. Be sure to verify that any cancer policy you’re considering doesn’t have the same coverage exclusions as your primary health insurance policy.

Eligibility for supplemental cancer insurance depends on several factors.

People who have previously been diagnosed with cancer or awaiting test results may be ineligible for cancer insurance. Other preexisting conditions may also result in being ineligible. Each policy is different, so it’s important to understand the requirements of each policy being considered.

Answer these four questions to help understand if supplemental cancer insurance is right for you.

Consider your family history and personal circumstances. If you can answer “Yes” to any of the following questions, cancer insurance may make good sense.

• Does your family have a history of cancer?
• Do you have a family and want some peace of mind knowing that if you get cancer, monthly bills can be paid?
• Are you worried about the costs of a high-deductible health insurance plan?
• Are you a small business owner concerned about operations continuing if you’re unable to work full time?

Learn more about the basics of cancer insurance and whether it’s right for you.

Frequently Asked Questions (FAQs)

Is it worth it to get cancer insurance?

Only you can decide if a cancer insurance policy is worth it for you and your situation. If you’re wondering if supplemental cancer insurance is worth it, consider the cost of the coverage and the impact the expenses not covered by your health insurance will have on your finances. These might include mortgage payments, utilities, travel for treatment and other basic bills.

Sources:

¹ American Cancer Society, Cancer Facts & Figures 2024, accessed Nov. 2025, cancer.org/content/dam/cancer-org/research/cancer-facts-and-statistics/annual-cancer-facts-and-figures/2024/2024-cancer-facts-and-figures-acs.pdf

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