Common Financial Mistakes Cancer Patients Make and How to Avoid Them

What are the common financial mistakes cancer patients make?

There are some common financial challenges that are common and side effects of a cancer diagnosis. The most significant part of the financial mistakes patients make which often relates to underestimates the cost of cancer treatment, making poor financial decisions under stress. 

Some of these may include:

Underestimating the cost of Treatment

Most cancer patients assume that health insurance coverage might cover the overall treatment costs. While you can expect some in-hand expenses for the upcoming diagnostic tests, cancer therapies and travel costs and accommodations can add to the overall cost of expenses.

Here’s how you can avoid some financial mistakes:

• Try to request an overall cost estimate from your chosen hospital before starting any kind of cancer treatments.
• Keep a buffer fund for unplanned medical costs.
• Seek more patient assistance programs and NGOs that offer financial aid to lower economic sections.

Ignoring health insurance details

The majority of cancer patients won’t fully understand how their insurance works, and often leading to denied claims or unexpected bills. 

How to avoid these misconceptions:

• Make sure to carefully read and review your policy’s inclusions, exclusions, and limits.
• Ask your insurance provider about cashless payments, room rent capping, and co-pay clauses. 
• If possible, try to opt for top-up or critical illness riders as well.

Draining all your life savings quickly

In most cases, families often liquidate all of their savings and investments to pay the hospital bills. It can cause financial instability in the long term for cancer patients and their family.

How to avoid these mistakes:

• Try to prioritize your health insurance coverage and government schemes first.
• Use your savings wisely; keep your emergency funds intact for your future needs.
• Consider making structured financial planning with the help of a financial advisor.

Not exploring Government and NGO support

In India, many cancer patients won’t explore or overlook the support available through central and state government healthcare schemes and NGOs. Make sure that you check any types of schemes which help you to cover your treatment expenses.

Here’s how to avoid these mistakes:

• Research central and state financial schemes which offer any types of subsidized and free cancer treatments.
• Reach out to NGOs through sending mails, or connect with cancer care organizations, and local trusts that provide financial aid for cancer medicines, travel or accommodations. 

Overusing Credit cards and bank loans

If you are someone highly reliant on credit cards or high-interest loans that can often trap most patients in a high-interest debt cycle. 

Here’s how you can avoid these mistakes:

• Search for low interest levels of medical loans or EMI options offered by many cancer hospitals in India.
• Try to apply for a specialized medical financing scheme.
• Make sure to use credit cards as a last option, with a clear repayment plan.

Not keeping track record on expenses

One of the drawbacks many cancer patients face is they fail to track their bills, prescriptions, and insurance paperwork, which often leads to missed reimbursements and tax benefits.

How to avoid these mistakes:

• Maintain insurance coverage and government health schemes first.
• Track your monthly expenses for better financial planning
• Claim the tax deductions available under Section 80DDB of the Income tax for cancer treatment. 

Avoiding conversations about finances

Patients and their families avoid any types of financial discussions due to some stress and fear, which often leads to poor decision making regarding the treatments.

Here’s how you can avoid these mistakes:

• Communicate openly with family about the treatment costs and resources.
• Meet a financial advisor and coordinator available at many hospitals in India.
• Always creates a budget plan to balance treatment costs with daily living costs.