The Need for Cancer Insurance: A Guide for Insurance Agents

Cancer insurance is becoming an increasingly important product in the insurance world, providing clients with financial protection if they face one of the most common and costly diseases. For insurance agents, understanding the value and positioning of cancer insurance is crucial. Here’s a breakdown of why cancer insurance is needed, how it benefits clients, and how you, as an agent, can offer this essential product to meet client needs.

Why Offer Cancer Insurance?

As cancer rates continue to rise, so does the financial burden it places on individuals and families. According to the American Cancer Society, approximately 1 in 2 men and 1 in 3 women in the U.S. will develop cancer in their lifetime. Even with standard health insurance, cancer treatment can leave clients facing significant out-of-pocket expenses. Here’s where cancer insurance steps in.

"Cancer treatment can cost upwards of $150,000 on average. Even with insurance, out-of-pocket expenses can quickly reach tens of thousands of dollars."

Cancer insurance provides coverage specifically for cancer-related expenses, giving clients peace of mind and a financial safety net. By adding cancer insurance to your product offerings, you’ll be addressing an important client concern while adding value to your portfolio.

Key Benefits of Cancer Insurance for Clients

1. Financial Protection Against Out-of-Pocket Costs

• Health insurance often covers basic treatments, but cancer treatment usually involves additional costs like high deductibles, copays, and services outside standard coverage. Cancer insurance provides a lump sum or benefit payments to help cover these additional costs.

2. Coverage for Non-Medical Expenses

• Cancer doesn’t just impact health—it affects a client’s entire lifestyle. Many cancer insurance policies cover non-medical costs like travel expenses, childcare, and even household bills. This support ensures clients can focus on recovery instead of worrying about finances.

3. Affordable Premiums and Flexible Coverage Options

• Cancer insurance policies tend to have low, affordable premiums, making them an easy add-on for clients. They also offer flexibility, with options to choose the coverage amount based on individual needs.

4. Freedom of Care

• Cancer insurance offers clients more choice in selecting their treatment providers, as the coverage is usually a lump sum paid directly to the client. This flexibility can be essential for clients seeking specialized care.

"Cancer insurance offers clients a safety net, giving them the freedom to pursue the best treatment without sacrificing financial stability."

When to Introduce Cancer Insurance to Clients

Agents who educate their clients on cancer insurance often find that it’s a welcome conversation. Here are a few key moments when discussing cancer insurance can make a natural addition to the client’s coverage plan:

• During a Policy Review: Many clients may not realize the gaps in their health insurance until they’re highlighted. A yearly review can reveal areas where additional coverage, like cancer insurance, can provide vital support.
• When Discussing Life Insurance Needs: Since cancer is a leading cause of death, a discussion on life insurance naturally leads to a conversation about cancer insurance, especially as a preventive financial tool.
• For Clients With Family History: If your client has a family history of cancer, they may be more inclined to see the value of cancer insurance. Knowing that they are at higher risk may encourage them to consider additional coverage.

Overcoming Common Client Objections

Clients may raise a few objections to purchasing cancer insurance. Here’s how you can address these concerns:

• “I already have health insurance.”
  • Explain that health insurance may not cover all cancer-related costs and that cancer insurance fills these gaps by covering out-of-pocket and non-medical expenses.
• “I don’t think I need it.”
  • Cancer is unfortunately common, with half of men and a third of women expected to face a diagnosis in their lifetime. A cancer policy offers protection against a high-cost illness that no one expects to experience.
• “It seems too expensive.”
  • Cancer insurance is often available at a low monthly cost, making it an affordable way to add significant financial security.

"Clients are often relieved to know that cancer insurance provides a lump sum payment that can be used for any expense, not just medical bills."

How to Position Cancer Insurance Effectively

As an agent, showing clients the practical benefits of cancer insurance can increase interest and understanding. Here are some ways to position cancer insurance to appeal to your clients’ needs:

1. Emphasize the Gaps in Traditional Health Coverage

• Discuss the costs associated with cancer that typical health insurance won’t cover. This could include out-of-network treatment, alternative therapies, or non-medical costs like transportation to treatment centers.

2. Highlight Cancer Insurance as Part of a Comprehensive Plan

• Show clients that cancer insurance can be a valuable part of a well-rounded financial protection plan, alongside health, life, and disability insurance. Offering this coverage can help them feel fully prepared.

3. Share Real-Life Scenarios and Statistics

• Presenting factual information or stories about cancer’s financial impact can make the need for cancer insurance more relatable. For instance, mention that “many families spend thousands on travel and accommodations for treatments not available locally,” underscoring the need for flexible coverage.

4. Offer It as a Low-Cost Add-On

• Cancer insurance is relatively affordable and can be an easy upsell in many cases. Position it as a cost-effective way to address a high-cost risk, making it easier for clients to add it to their policy.

Making Cancer Insurance Part of Your Product Offerings

Adding cancer insurance to your offerings is not only beneficial for your clients but can also help diversify and grow your business. As a Medicare or health insurance agent, consider pairing cancer insurance with other health-related products. Here’s how:

• Offer Bundled Packages: Create packages that combine cancer insurance with Medicare or ACA health plans. This provides a one-stop solution for clients who want comprehensive coverage.
• Leverage Educational Marketing: Develop educational materials, blogs, or newsletters that discuss the benefits of cancer insurance. Providing value through education can lead to higher client trust and interest.
• Follow Up with Prospects: Some clients may need time to decide, especially with new product offerings. Follow up with educational content, testimonials, and reminders of the financial security that cancer insurance can provide.

“Providing a cancer insurance option shows clients that you’re invested in their financial health, no matter what life throws their way.”

Conclusion

In a world where medical expenses are steadily rising, cancer insurance stands out as a valuable product for clients. By covering expenses beyond the scope of traditional health insurance, cancer insurance provides clients with peace of mind, financial security, and flexibility in their healthcare choices. For agents, offering this product can set you apart as a provider who truly cares about comprehensive protection. By understanding its benefits, addressing common client objections, and positioning it strategically, you can offer cancer insurance as a critical addition to any well-rounded insurance portfolio.

View Ancillary Products Solutions page