What does Cancer or Critical Illness insurance cost?

Costs for cancer and critical illness insurance protection can vary.
There are roughly 60 insurance companies that offer cancer insurance and critical illness insurance. They each set their own prices that can vary quite significantly.

The examples shown below are approximates created by the Association to serve as an example for consumers.  Rates for insurance will vary based on many factors.  That includes your health, your State, age plus others.

An example of costs for Cancer-Only insurance

You Are Smoker or Non-Smoker Benefit Amount Cost-Per-Year
Male age 40 Non-smoker $25,000 $67
Male age 40 Smoker $25,000 $95
Female age 40 Non-smoker $15,000 $84
Female age 40 Smoker $15,000 $98
Male age 52 Non-smoker $10,000 $89
Male age 52 Smoker $10,000 $171
Female age 52 Non-smoker $10,000 $106
Female age 52 Smoker $10,000 $171

An example of costs for Critical Illness insurance

You Are Smoker or Non-Smoker Benefit Amount Cost-Per-Year
Male age 40 Non-smoker $10,000 $82
Male age 40 Smoker $10,000 $134
Female age 40 Non-smoker $10,000 $92
Female age 40 Smoker $15,000 $118
Male age 52 Non-smoker $10,000 $232
Male age 52 Smoker $10,000 $437
Female age 52 Non-smoker $10,000 $199
Female age 52 Smoker $10,000 $308

Rates shown are merely examples provided by the Association for the benefit of consumers.

Do costs for critical illness insurance change?

They can. Simply explained, there are two types of insurance policies. One is commonly called ‘age based premium’. What you pay (the premium) is directly based on your age. Often the insurance company will create age bands (often in 5 year increments).

Using the cost example above, a male age 40 would pay $67-yearly for $25,000 of cancer insurance coverage. He would pay $67 a year for each of the next 4 years. When he becomes age 45, his premium will increase.

Age-based is almost always less costly at younger ages. Generally, it is ideal for those who might only want insurance for a limited number of years (for example, until you turn 60 or age 65).

The other formula is called ‘level premium’. Here the insurer sets their premium that is intended to never increase. You should read the policy to see if this is a guarantee or merely their intent.

The best way to decide which is better for you is to compare the current rates, project how many years you will want insurance coverage and then do the math.

How can I save on critical illness insurance?

The best way to save is to compare prices. Premiums for cancer-only and critical illness insurance policies can vary significantly.

If you are a non-smoker, you will likely save money when the insurance company offers both smoker and non-smoker rates. When an insurance company only offers one set of rates, non-smokers are subsidizing smokers who are at much higher risks of cancer and other critical illnesses.

You should also see if there are additional policy charges or other fees that are added to the premium cost. These can seem small – but they will add up over time.

Don’t overbuy. Some critical illness insurance policies will provide benefits of $250,000 or more. Those could be valuable if you are a business owner. But for most individuals, the Association believes modest amounts from $10,000 to $25,000 are appropriate and affordable.

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