Cancer Survivors: Getting Life Insurance After Recovery

Cancer survivors can get life insurance, but it may be challenging to qualify for a new traditional policy. The type of cancer and the patient's health status are crucial factors in obtaining life insurance. Cancer patients may have to pay higher rates or settle for guaranteed issue and final expense life insurance, which have lower death benefits and higher premiums. However, certain types of cancer, such as skin cancer, may not affect insurance rates at all. The longer a cancer survivor has been in remission, the better their chances of obtaining traditional life insurance and lower premiums.

Cancer survivors can get life insurance, but it may be more expensive

The type of cancer is a significant factor in determining eligibility and premiums. Cancers with higher survival rates or lower chances of recurrence are viewed more favourably by insurance companies. For example, skin cancer or prostate cancer may have less impact on insurance rates if detected early and treated successfully. On the other hand, more aggressive or advanced cancers, such as pancreatic cancer, can result in significantly higher premiums or even make it challenging to obtain coverage.

The time since remission also plays a crucial role in accessing life insurance as a cancer survivor. Many insurance companies require a minimum period of remission before offering coverage. This waiting period can vary depending on the type of cancer and the insurance provider. For instance, some companies may require a minimum of five years in remission, while others may have stricter standards, such as a ten-year remission period for certain cancers.

During the waiting period and after becoming eligible for life insurance, cancer survivors may need to opt for more expensive policy options. Guaranteed issue life insurance, which does not require a medical exam, is often more costly and provides lower death benefits. Simplified issue life insurance, which may be available after a few years in remission, typically comes with higher premiums for cancer survivors. Traditional term or whole life insurance policies may become more accessible and affordable once a survivor has been in remission for several years, but the rates can still be significantly higher than for individuals without a cancer history.

Overall, while cancer survivors can obtain life insurance, they may face higher costs and more limited options. It is essential to shop around and compare different insurance providers, as eligibility and rates can vary. Working with an experienced independent insurance agent can help cancer survivors find the most suitable and cost-effective coverage for their specific circumstances.

It's harder to get life insurance if you've been recently diagnosed with cancer

The best option for cancer patients seeking life insurance is to explore guaranteed issue life insurance policies, which do not require a medical exam or health screening. These policies tend to be more expensive and have lower death benefits, but they are more accessible to those with health complications. Burial insurance, also known as funeral or final expense insurance, is another option that doesn't typically require a medical exam. It is designed to cover end-of-life expenses, which can be substantial. Group life insurance through an employer or organisation is a third option that often comes in the form of guaranteed issue and may be worth considering if the employer pays all or part of the premium.

The specifics of your cancer diagnosis will influence your ability to obtain life insurance. Certain types of cancer with higher survival rates or lower chances of remission will improve your chances of being approved for a policy. The longer you have been in remission, the more likely you are to qualify for life insurance and the fewer restrictions you will face. However, if you have other health concerns, such as high blood pressure, your eligibility or premium may be impacted.

It's important to be honest and transparent when applying for life insurance. Lying on your application or failing to disclose relevant health information can result in your claim being denied or your policy being cancelled. Additionally, improving your overall health, avoiding risky hobbies, and maintaining a clean driving and criminal record can help increase your chances of obtaining life insurance after a cancer diagnosis.

Cancer type and survival rate influence your ability to get insurance

The type of cancer you have will likely influence your ability to get insurance. Insurance underwriters are aware that certain types of cancer have a higher survival rate. If you have a higher chance of surviving, you have a better chance of being approved for life insurance.

When you apply for life insurance, your provider will want to know as much as possible about your health issues, including the following cancer-specific details:

• The type of cancer and its stage
• When you were diagnosed
• What your treatment plan is, and how you have responded to it
• If it has metastasized — that is, if it’s contained in one organ or has spread throughout your body
• Whether this is your first experience of cancer
• Your family history of cancer

Cancers with a higher survival rate or a lower chance of returning once you go into remission will improve your odds of being approved for a policy and qualifying for an affordable premium.

The specifics of your diagnosis will also factor into what coverage you may qualify for. For example, non-melanoma skin cancers usually don't affect life insurance prices, while a pancreatic cancer diagnosis might make it nearly impossible to get coverage.

If you have a form of cancer that’s more easily treatable and has a lower possibility of remission, you’re more likely to be approved than if your cancer is more aggressive or more advanced.

Waiting periods for different types of cancer

• Bladder cancer: 2 years
• Bone cancer: 5 years
• Breast cancer: 2 years
• Cervical cancer: 1 year
• Colon cancer: 2 years
• Kidney cancer: 3 years
• Lung cancer: 3 years
• Metastatic cancer: 5 years
• Ovarian cancer: 3 years
• Rectal cancer: 2 years
• Skin melanoma: 1 year

Life insurance ratings for cancer survivors

If you do qualify for a life insurance policy, your provider will use a rating system to determine the premium you will pay. The rating tiers are:

• Super preferred (Preferred plus)
• Preferred
• Standard plus
• Standard
• Substandard (also called “table ratings”)

If you are diagnosed with a form of cancer that has a lower death rate, you may be accepted for life insurance but placed in a lower tier. For instance, if you are diagnosed with melanoma, which has a 91% survival rate, you may be accepted for a policy but given a lower rating. Substandard customers generally pay higher premiums, while being rated standard plus, preferred or super preferred generally results in lower premiums.

Cancer survivors may be placed in a lower insurance rating tier

Cancer survivors can get life insurance, but they may be placed in a lower insurance rating tier. This means that they will likely face higher premiums for their coverage. The specific type of cancer and the survivor's overall health will be significant factors in the insurance company's decision.

Life insurance companies use a classification system to determine rates, and cancer survivors are often placed in the "substandard" or "table ratings" category. This category typically results in higher premiums for the policyholder. The length of time since the survivor's cancer treatment will also impact their rating. If it hasn't been long since remission, the insurance rates may be higher.

The type of cancer is another critical factor. Cancers with a higher survival rate or a lower chance of returning once remission is achieved will improve the chances of being approved for a policy and securing more affordable premiums. For example, a stage 1 skin cancer survivor in remission will likely have similar premiums to a healthy individual. On the other hand, less treatable forms of cancer, such as pancreatic cancer, may result in significantly higher premiums for eligible patients.

Other factors that insurance companies consider when evaluating cancer survivors for life insurance include the stage of cancer, the treatment plan and response, whether the cancer has metastasized, and the family history of cancer.

While cancer survivors may face higher rates or challenges in obtaining life insurance, it is important to note that many insurance companies are willing to work with them to find a suitable policy. The process of applying for life insurance as a cancer survivor is similar to that of an individual without a cancer history, and it is recommended to be honest and upfront about one's health during the application process.

Life insurance can help cover cancer treatment costs

Secondly, you can utilise a life insurance rider, which is an optional add-on to your policy. Certain riders allow you to access a portion of your death benefit while you are still alive, which can be extremely beneficial for covering cancer treatment costs. For example, an accelerated death benefit (ADB) rider, also known as a terminal illness rider, enables you to receive a portion of the death benefit if you are diagnosed with a qualifying terminal illness like cancer. Similarly, a chronic or critical illness rider is a specific type of ADB that allows you to access your death benefit if you meet certain criteria related to chronic or critical illnesses as defined in your policy.

Additionally, cancer insurance, which is a supplemental policy, can help cover treatment costs associated with cancer. It assists in paying for various expenses that may not be fully covered by primary health insurance, such as deductibles, copayments, and out-of-pocket costs related to chemotherapy, radiation therapy, and surgery. This type of insurance alleviates the financial burden of cancer care, allowing you to focus on your recovery.

It is important to carefully review your life insurance policy and understand the available options to maximise the benefits that can help cover cancer treatment costs.

Frequently asked questions