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Cancer Insurance: How It Works

Facing a cancer diagnosis can be overwhelming. However, cancer insurance can help ease the financial burden of a diagnosis for those living with cancer and their families. According to the Centers for Disease Control and Prevention, $185 billion is spent each year on cancer care.1 By offering group cancer coverage, employers can help their employees be more financially prepared should they or a covered family member receive a diagnosis.

Here is a synopsis of how cancer insurance works and some of the potential benefits.

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Helping Employees Protect Their Finances

Cancer treatment saves thousands of lives each year, but this treatment often results in costly medical bills. In a 2022 survey, The Commonwealth Fund found that among survey participants, "30% of working-age adults reported that they had problems paying medical bills over the past year, and 25% said that they were paying off medical debt over time."2

How Cancer Insurance Works

Employees elect coverage for themselves and can add their eligible family members. If a covered person is diagnosed with a certain type of cancer or other covered disease, they can submit a claim for benefit payment.*

Depending on the carrier, benefits can be paid directly to the covered person to use as they wish – whether it's to help pay a deductible, medical bills, or personal items, the choice is theirs.

Cancer insurance goes beyond the diagnosis and helps employees and their families protect their finances through treatment and recovery. You might be surprised to learn that this protection can help cover things like medical transportation, non-local transportation, family lodging and more.

As a diagnosed person moves through their health care cycle, additional benefits can be paid for prosthetics, medication and certain therapies. Cancer insurance isn't one-and-done protection; It truly can help every step of the way, from that first scary day all the way through the relief of remission.

Standard Cancer Insurance Benefits

Let's look at the base benefits that can be included in this coverage. Cancer insurance can pay benefits for qualified hospital confinements, possibly even in a charity or government facility. Treatments such as radiation and chemotherapy, blood/plasma and platelet procedures, and medical imaging may also be included depending on the coverage offered. Extended care following inpatient treatment and at-home nursing services may also be covered benefits.

Additional Cancer Insurance Benefits

You may choose to add optional benefits to your employees' coverage that can help protect them further. Some carriers offer wellness benefits that can aid in early detection and prevention of cancer and other covered diseases. Other optional benefits may include protection for a recurrence of cancer** and benefits payable for qualified intensive care unit treatment.

Coverage in Action


Mike elects Cancer Insurance for himself and his wife to help protect their finances if one of them is diagnosed with a covered type of cancer or specified disease.


Mike has his annual wellness exam and is diagnosed with prostate cancer for the first time. His doctor recommends pre-op testing and surgery.

Mike travels 400 miles from his home for testing and surgery. He is admitted into a hospital for two days, then released to recover for two months.


Mike files his claim and receives a payment for:
  • Wellness
  • Cancer Initial Diagnosis
  • Continuous Hospital Confinement
  • Non-Local Transportation
  • Surgery
  • Anesthesia
  • Medical Imaging
  • Physician's Attendance
  • Anti-Nausea Medication

Mike has follow-up visits during and after his recovery. His benefit payment helped to pay his medical expenses, giving Mike and his wife financial peace of mind.

Allstate Benefits Can Help

When you team up with Allstate Benefits, you're helping your employees to protect their finances and empowering them to seek the care they need during one of life's most difficult challenges. Here's how Cancer Insurance can help:

  • Benefits can help pay medical expenses from diagnosis through recovery.
  • Certain cancer diagnoses and specified diseases are eligible for benefit payment.
  • Cancer insurance is supplemental and pays in addition to any other coverage already in place.

Allstate Benefits offers Group and Individual Cancer Insurance that can help employees protect their finances when a diagnosis occurs. Contact a sales representative to learn more about Cancer Insurance and other coverage options from Allstate Benefits. Are you in good hands?®

1Cancer, National Center for Chronic Disease Prevention and Health Promotion |
2The State of U.S. Health Insurance in 2022 | The Commonwealth Fund
*All limitations and exclusions may apply based on the insurance carrier.
**With Allstate Benefits coverage, the diagnosed person must be symptom- and treatment-free for 12 months immediately before the coverage went into effect. Maintenance medications and follow-up visits do not count as "treatment".

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