Is a Cancer Insurance Policy Worth It?

Expertly Reviewed by: Dr. Manoj Pawar
Chief Medical Officer at Mutual of Omaha

Cancer. Almost everyone has someone in their life who has been affected by this terrible disease: friends, family members, co-workers, or you might have even faced cancer yourself. The American Cancer Society predicts there will be over 2 million new cancer cases this year.¹

If you’ve experienced a cancer diagnosis with a loved one, you know the emotional whirlwind a diagnosis brings. Almost immediately after a diagnosis, the discussion centers on treatment options available to fight the disease. Along with getting treatment, you’ll want to focus on what’s important — being with family and loved ones — not details like paying your bills. If you’re diagnosed with cancer, your health insurance may cover many of your medical costs.

But, often overlooked is the impact cancer can have outside of a hospital room. In addition to the physical and emotional changes, a cancer diagnosis may make it difficult to pay home and family expenses like your mortgage, utilities and other basic bills. A supplemental policy specific to cancer can provide benefits upon your diagnosis or during your treatment that can help you and your family worry less about money and focus on what’s most important: recovery.

However, it’s important to consider the cost and details of the policy to ensure it covers what you need in an affordable plan. Only you can decide if a cancer insurance policy is worth it for you and your situation.

Cancer Insurance Benefits

There are two types of cancer insurance policies with differing benefits: benefits paid upon diagnosis and benefits for treatment.

Benefits paid upon diagnosis are paid in a lump sum. This type of cancer insurance policy allows you to use the money you receive as you see fit — meaning it doesn’t have to go toward your treatment. You’ll know the exact amount you’ll receive when you make a claim, so you can plan effectively.

Benefits paid upon diagnosis can be used at your discretion to help:

• Replace income lost from taking time off from work for treatment
• Cover health insurance deductibles
• Pay your mortgage, utilities or even to get groceries
• Cover travel expenses needed for treatment
• Any number of other options: Your lump-sum payment is yours to use as you see fit.

Benefits paid for treatment are meant to help cover costs associated directly with your cancer treatment.

Practical uses for cancer insurance

If you receive a cancer diagnosis, you’d likely immediately start researching your treatment options.

If you live in Oklahoma and the doctor you want to see is in New York, your cancer insurance benefits could be used towards travel expenses like airfare and hotel rooms as well as household bills while you’re gone.

Cancer insurance can help allow you to focus your time, energy and effort on your recovery. And that’s what really matters.

Weigh the benefits of a policy against the cost and coverage to decide whether cancer insurance is worth it for you.

Frequently asked questions

Q1: How much does cancer insurance cost?

The price of cancer insurance will go up as you get older. The average rates for cancer insurance policies range from $20 to $90 per month.²

Q2: What age should you get cancer insurance?

The answer to this question can vary greatly. If you have a history of cancer in your family, you may want to consider coverage as early as your 30s. But overall, most people purchase cancer insurance in their 40s into their early 60s.

Expertly Reviewed by: Dr. Manoj Pawar

Chief Medical Officer at Mutual of Omaha

Dr. Manoj Pawar, MD, FAAFP, is a board-certified family physician and Chief Medical Officer at Mutual of Omaha. He brings over two decades of clinical and executive experience with a focus on preventive care, public health and empowering physicians and patients with the tools they need to live their best lives. Dr. Pawar completed his undergraduate degree at Northwestern University, his medical degree at McGill University in Montreal, and his specialty training at the University of Colorado. He’s a Fellow of the American Academy of Family Physicians, and a member of Delta Omega, the Public Health honor society.

Sources:

¹American Cancer Society, Cancer Facts & Figures 2024, accessed July 2025, cancer.org/research/cancer-facts-statistics/all-cancer-facts-figures/2024-cancer-facts-figures.html.

²SERO, Affording Cancer: How Health Insurance for Cancer Treatment Can Ease Your Financial Burden, Dec. 4, 2022, accessed July 2025, treatcancer.com/blog/medical-insurance-cancer-treatment/#what-is-cancer-insurance.

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