Brain Cancer: Life Insurance Options And Availability

A brain tumour diagnosis can be life-altering, and you may be concerned about the financial impact on your family. If you're wondering about life insurance options, it's important to know that a pre-existing condition like a brain tumour does not automatically disqualify you from coverage. In fact, there are several options available, including guaranteed issue life insurance and group life insurance, designed to meet your specific needs during this challenging time. Let's explore this topic further to understand the possibilities for protecting your loved ones financially.

Life insurance options for brain cancer patients

If you have brain cancer, you may find it challenging to qualify for a new traditional life insurance policy. However, this does not mean that you are disqualified from obtaining life insurance. Here are some options to consider:

Existing life insurance policy

If you already have a life insurance policy before being diagnosed with brain cancer, your insurance company should honour it as long as you were honest about your medical history when taking out the policy. It is important to review the terms of your policy and keep it active to ensure coverage.

Guaranteed issue life insurance

Guaranteed issue life insurance is a type of policy that does not require a medical exam or health questions. This option is suitable if you have cancer but a decent prognosis and do not anticipate dying within the next two years. If you pass away during the two-year waiting period, the claim is denied, but all premiums paid are returned to your beneficiary.

Group life insurance

Group life insurance provides coverage to multiple people under one policy, often in the form of term insurance. There are different types of group life insurance, including employee basic life, employee optional life, dependent basic life, and dependent optional life, each with varying coverage amounts and conditions.

Simplified issue life insurance

Simplified issue life insurance does not require a medical exam, but you may need to fill out a short health questionnaire. This type of policy may be a good choice if you are cancer-free but not in perfect health.

Traditional life insurance

If you have been in remission for more than five years, traditional life insurance may still be an option. However, you may need to take a medical exam, and rates may be significantly higher, especially if it has been less than ten years since your diagnosis. Be sure to shop around and compare rates from different insurers, as each company has its own qualifiers.

Critical illness protection

Critical illness protection is a type of insurance that will pay out a lump sum if you are diagnosed with a critical illness, which may include brain cancer.

Income protection policies

Income protection policies can provide an income for life, helping to cover expenses and replace lost income due to illness or injury, including brain cancer.

Payment protection policies

Payment protection policies can help you pay off loans, credit cards, or other financial obligations if you are unable to work due to brain cancer or other illnesses.

Terminal illness insurance

If you have a terminal illness, including brain cancer, terminal illness insurance will pay out the insurance cover. Contact your insurer as soon as possible to understand the terms of your policy.

It is important to note that the availability and cost of life insurance options may vary depending on factors such as the type and stage of cancer, your overall health, treatment, and lifestyle. It is recommended to speak with an independent financial advisor or insurance broker to find the best option for your specific needs and circumstances.

How to get life insurance after a brain cancer diagnosis

If you have been diagnosed with brain cancer, you may be concerned about the financial impact on your family. It is true that a cancer diagnosis can make it more difficult to get life insurance, but it is not a complete barrier to obtaining coverage. Here are some steps you can take to get life insurance after a brain cancer diagnosis:

Check your existing policy

If you already have life insurance before your brain cancer diagnosis, review your policy carefully. The insurance company should honour it as long as you were honest about your medical history when taking out the policy. Your premiums may increase, and it may be difficult to increase the value of your policy. However, it is important to maintain your existing policy rather than starting a new one after your diagnosis.

Understand your options

There are different types of life insurance policies available, and your options may be limited after a brain cancer diagnosis. Traditional term and whole life insurance policies may not be available to you. Instead, you can consider the following options:

• Guaranteed issue life insurance: This type of policy does not require a medical exam or health questions. There is usually a two-year waiting period, and the coverage rates are reduced. If you die during the waiting period, the claim is denied, but the premiums paid are returned to your beneficiary.
• Group life insurance: This type of insurance provides coverage to multiple people under one policy, often offered by employers. It is typically term insurance with shorter coverage but at a lower cost. There are different types of group life insurance, including employee basic life, employee optional life, dependent basic life, and dependent optional life.
• Simplified issue life insurance: This option may be suitable if you are cancer-free but not in perfect health. It does not require a medical exam, but you may need to fill out a short health questionnaire.
• Burial life insurance: This type of insurance is designed for individuals over 50 and covers end-of-life costs such as funeral expenses and outstanding medical bills. No medical exam is required.

Shop around and consult an advisor

Different insurance companies have varying qualifiers for coverage. It is essential to shop around and compare policies from different insurers. Work with an experienced independent life insurance agent who specialises in impaired risk underwriting. They will know which companies are more willing to insure cancer survivors and can help you find the best coverage for your specific needs.

Provide required information

When applying for life insurance after a brain cancer diagnosis, be prepared to provide detailed information about your health and treatment. The insurer will likely ask for your precise diagnosis, whether you have had surgery or removal of the tumour, your current cancer stage, any symptoms you are experiencing, your family's cancer history, and any other medical conditions you may have.

Consider other financial support

In addition to life insurance, there may be other financial benefits and support available to you as a brain cancer patient. These can include critical illness protection, income protection policies, payment protection policies, mortgage protection policies, and terminal illness insurance. You may also be entitled to early pension claims and free prescriptions.

The cost of life insurance after brain cancer

Impact of Cancer Type and Stage

The type and stage of cancer play a significant role in determining life insurance costs. Some cancers, like non-melanoma skin cancers, may not affect insurance prices, while others, such as pancreatic or lung cancer, can make obtaining coverage extremely difficult. Brain cancer, specifically, may limit your options, but it is still possible to obtain life insurance.

Waiting Periods and Remission

Insurance providers typically require a waiting period after cancer treatment before offering coverage. This period can vary depending on the type of cancer and the chances of recurrence. For example, a two-year wait is common for bladder cancer, while bone cancer may require a five-year wait. Brain cancer patients may need to wait two to five years after successful treatment to qualify for standard life insurance.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is an option for individuals who cannot qualify for traditional life insurance due to their health. This type of policy does not require a medical exam or health questions, and individuals cannot be turned down. However, the coverage amounts are typically low, and there is a graded death benefit. This means that if the insured person passes away within the first two or three years of the policy, the beneficiaries will not receive the full payout.

Standard Life Insurance Costs

If you are eligible for standard life insurance after brain cancer, the cost will depend on various factors. The insurance company will consider your age, the amount of coverage needed, the purpose of the coverage (e.g., mortgage, family, funeral expenses), and the length of the coverage term. The cost will also depend on your health and lifestyle, including factors such as obesity, family history, and other medical conditions.

Impact of Overall Health and Lifestyle

Improving your overall health and maintaining a healthy lifestyle can positively impact your life insurance costs. This includes eating healthily, exercising, avoiding tobacco use, and avoiding risky hobbies like mountain climbing or skydiving. Additionally, your profession can also affect your rates, with certain high-risk jobs resulting in higher premiums.

In conclusion, while life insurance after brain cancer may be more challenging to obtain and potentially more expensive, there are options available. It is important to work with an experienced independent life insurance agent who can help you navigate the different types of policies and find the best option for your specific circumstances.

The impact of a brain cancer diagnosis on existing life insurance policies

If you already have life insurance and are then diagnosed with brain cancer, the insurance company should honour your existing policy as long as you were honest about your medical history when you took the policy out. However, you may find it difficult to increase the value of your policy, at least for some years. It is important to keep up your existing policy, as it will be easier than starting a new life insurance policy after your cancer diagnosis.

If your life insurance policy includes terminal illness cover, you can make a claim if you are diagnosed with a terminal illness and have less than 12 months to live. The insurer will pay out the money straight away, and you can keep the payout even if you live longer. Check with your insurer to see whether this is included in your policy.

If you are diagnosed with a critical illness, some life insurance companies will also pay out, so check with your insurer.

If you have a whole life insurance or universal life insurance policy, you may be able to use your policy to help cover your medical expenses or replace lost income. You could borrow from your cash value via a life insurance loan (any owed funds at the time you pass away would be deducted from your death benefit).

If your policy has a chronic or critical illness rider, you may be able to activate it when you are diagnosed with cancer, allowing you to access your death benefit while you are still alive.

Getting a new life insurance policy after a brain cancer diagnosis

It is more difficult to get a new life insurance policy after a cancer diagnosis, and the type of policy you apply for may be affected. Your rates are likely to be significantly higher for traditional term and whole life insurance policies, or your application may be rejected.

You may need to apply for guaranteed issue life insurance, a more expensive policy that doesn't require a medical exam.

The waiting period for life insurance after brain cancer

If you have undergone the total removal of a benign brain tumour, you will usually need to wait for a certain period before qualifying for standard rate insurance. If your tumour is cancerous, your options may be more limited.

• If your condition has remained stable for more than ten years following your cancer diagnosis, you can be eligible for traditional life insurance at market rates.
• If you received a cancer diagnosis five to ten years ago and have remained stable, you have a good chance of obtaining traditional life insurance and a rated policy.
• If you received your cancer diagnosis between two and five years ago and have remained stable, you might be eligible to apply for rated traditional or simplified life insurance.
• If you were diagnosed with cancer less than two years ago, you can apply for simplified or guaranteed issue life insurance.

Guaranteed issue life insurance does not require a medical exam or health questionnaire, but it has higher premiums and lower coverage amounts. There is also usually a two-year waiting period for this type of insurance. If the insured person passes away during the first two years of the policy, the claim is denied, but the premiums paid are returned to the beneficiary.

When it comes to specific types of cancer, here are some sample waiting periods from Trusted Choice, a network of independent insurance agents:

• 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

It's important to note that these are just examples, and the actual waiting period can vary depending on the insurance company and your individual circumstances. It's always best to consult with a life insurance specialist or advisor to determine your specific options and waiting periods.

Frequently asked questions