Although it is difficult and costly to buy life insurance after being diagnosed with cancer, you may be able purchase a policy. You’ll have to evaluate whether the available coverage and cost make financial sense for you. Patients with cancer typically are not eligible for guaranteed-issue policies that offer limited coverage or pay out less in the first few years.
Remission patients who have been free from treatment for at least two to five years are more likely than others to be eligible for traditional term or permanent insurance policies. Although rates will be higher and some forms of cancer may not be accepted, coverage is available at lower rates.
Does life insurance cover cancer?
Cancer is covered by both permanent and term life insurance policies. Your beneficiaries will get the death benefit if you die from cancer within the coverage period. Accidental death and dismemberment policies are the only policies that do not cover cancer. These policies pay only if you are injured or are killed by an accident.
It is important to communicate with your insurer when you purchase cancer life insurance. Although life insurance covers cancer, it is possible for your beneficiary to be denied if your insurer proves that you deliberately misrepresented your medical condition or made fraudulent claims.
A contestability period will be in effect for the first two years of a policy. If you provide incorrect information, the insurer may contest your claim. It is important to give your beneficiaries a full and truthful history in order to make sure they receive the money you intended.
Life insurance for survivors of cancer
Cancer survivors are more likely to be denied coverage, but you may still be eligible for life insurance if you are in remission. You may be denied for life insurance if your cancer is not under control. However, if you have been in remission for many years you will be eligible to purchase term or permanent coverage. If you are unable to prove that you have cancer or have diabetes, you may not be eligible for a policy or receive expensive quotes.
After cancer, buying life insurance
A key qualification for buying life insurance is not only being healthy but also the time you have been free from cancer. You may need to wait up to five years depending on which insurer you choose and what stage of your cancer before being approved for life insurance. You may still be eligible for life insurance if your cancer is currently in remission and you are undergoing more than one surveillance visit per year.
The insurer will ask you a series of questions regarding your treatment and diagnosis when you apply for life insurance after cancer.
- The moment you were diagnosed
- If you have a family history of cancer
- What type of cancer you had, and whether it metastasized.
- Your treatment history, including the date and time they were started.
- How long you have been in remission.
- Whether your lymph nodes were affected, where it was located and how large.
- Relapses are possible
- Anything you are currently taking
Patients with ex-cancer will be able to purchase life insurance much easier if they are able answer all questions in detail and back it up with their medical records. It may be necessary to show that you are following the prescribed treatment plan, including medication and follow-up appointments.
What your type of cancer means for life insurance
The type and progression of the cancer will determine whether a survivor is approved for life insurance. Higher risk cancers, such as those that have spread to other parts of the body or metastasized, could result in rejection. You would be considered lower-risk if the cancer was present in situ, or locally.
Nonmelanoma is the only type of skin cancer that is low enough to be eligible for preferred life insurance rates. To be eligible, you must be in good health and have had no problems for several years after treatment.
Moderate-risk patients are those who have survived breast cancer, prostate cancer, testicular and thyroid cancer. However, survivors may be eligible for standard rates. Your health history, treatment, and diagnosis will be discussed by insurance companies. You’re more likely to get approved if you have been in remission for a longer time.
You may be eligible for life insurance if you have had other types of cancer such as cervical cancer or melanoma. Some forms of cancer, including colon, pancreatic, and leukemia, are not generally covered. Rarely are survivors of any of these conditions approved to cover.
Cancer patients can get life insurance
Although you may be eligible for life insurance with cancer, your options are limited. Cancer patients are generally not eligible for term or whole life insurance policies. If you apply, you will be denied. You have two options: get guaranteed whole life insurance that has limitations or group life insurance that can be guaranteed to issue.
Both options are possible for terminally-ill patients with cancer. However, we recommend that you only pursue guaranteed issue life insurance policies without waiting periods, such as group insurance. A waiting period on policies will not pay your beneficiaries the death benefit during the first two- to three years of coverage. Your premiums could be wasted if you don’t plan to live as long as you do. Guaranteed issue life insurance policies without waiting periods are not available to everyone. You may not be eligible to purchase a policy if you are unable to get coverage through your employer or an association.
You may be able purchase additional coverage through your insurer to augment your life insurance policy. However, it all depends on the policy you have and what coverage you need. If you have term life insurance and are satisfied with the coverage but would like to extend it, this may be possible.
Converting to a permanent policy that provides lifetime coverage for most term life insurance policies is possible without the need to go through underwriting. However, increasing your death benefit under an existing term policy might require additional underwriting. This could result in you not being approved. It is a good idea to review your current policy and look at any conversion options or riders. This would allow you to increase your coverage without having your health reviewed.
Whole life insurance with guaranteed coverage
Guaranteed life insurance, also called guaranteed life insurance will likely be the best option for cancer patients, and we recommend comparing quotes and coverage options from multiple insurers if you need a policy. These options can also be used to compare group life insurance and the amount that you could leave your loved ones by simply saving. You will find life insurance for patients with cancer is expensive via any channel. It’s better to save money than invest the premiums.
Group life insurance
You may be eligible for group life insurance if you are a veteran or a member of certain organizations. However, it is often available through your employer. If your employer or spouse offers group life insurance policies, you may be eligible to buy coverage for cancer. These policies are usually guaranteed to provide a certain amount. You will need to check the terms of any plan for higher levels of coverage.
Quotes for group life insurance are higher than those for standard term life policies. Your age is more important than your health. Therefore, guaranteed issue coverage won’t raise your premiums. These policies can be converted to permanent life insurance if you leave your job later.
A family history of cancer can result in life insurance
Your rates will rise if you have a history of cancer in your family. However, the extent to which it affects your rates depends on your family’s medical history. Insurers are usually interested in knowing:
- Type of cancer
- How many relatives were diagnosed.
- The age when your relative was diagnosed. The likelihood that your rates will be lower if they are older than if you were younger.
Life insurance covers the cost of treatment and other costs for cancer patients.
Patients with cancer who have life insurance may still be eligible to take advantage of their coverage to cover medical expenses and provide supplemental income for their loved ones. It depends on what type of policy you have, how well you are doing and whether you have added riders to your policy.
You can borrow or surrender cash from a cash-value life insurance policy (e.g. whole or universal) to access the cash value. You can surrender your life insurance policy just like you would cancel it. There will be no coverage loss and no premiums. You will receive the cash value of the policy, less any surrender fees.
Cancer patients can also take out a life insurance policy loan, borrowing up to the amount of the policy’s cash value. The cash value is used as collateral by the insurer, so there’s no credit check and no repayment schedule. Also, the interest rates are very low. There are some downsides to this policy: if your cash value falls below zero, it could cause your policy to lapse. If you die, the death benefit that your beneficiaries receive will be reduced due to the outstanding loan amount.
A life insurance settlement is a way to sell your policy if you are in grave danger or are terminally ill. In exchange for taking over premium payments, the buyer will receive your policy’s death benefits when you die. Although most life insurance settlements are for permanent policies, you might be able sell a term policy if your death is imminent.
Because the buyer pays a price equal to your policy’s cash value plus its death benefit, life insurance settlements can offer you a higher payout while you are still alive. Your health will determine how much money you get beyond the policy’s cash value. If you are diagnosed with terminal cancer and your doctor predicts that you will die within the next year, you may receive a higher price because the buyer is more likely to pay premiums for a shorter time.
You may be eligible to receive medical expenses while you are living if your life insurance policy has “living benefits” riders. Each policy is different so make sure to check the details of your policy. The most common rider is the accelerated death benefit. These riders allow you to receive the death benefit in the event that you are terminally ill or if you have a chronic illness. However, the terms of each insurer may change so make sure to verify that your cancer progression is eligible for you to use any of your riders.
