Cancer And Life Insurance: Can You Get Covered?

Cancer patients and survivors can get life insurance, but it may be more challenging and expensive. The type of cancer and the patient's health status are crucial factors in obtaining coverage. Traditional term and whole life insurance policies may not be available, but guaranteed issue, group life, and final expense life insurance are options. Cancer history may result in higher rates and more limited choices, but remission can improve eligibility over time.

Cancer patients can still get life insurance

If you're a cancer patient, you may be wondering about your eligibility for life insurance. The good news is that you can still get life insurance coverage even with a cancer diagnosis. While it may be challenging to qualify for a new traditional life insurance policy, there are alternative options available, and cancer won't stop you from getting the coverage you need.

Types of Life Insurance for Cancer Patients

The type of cancer and the stage of diagnosis play a significant role in determining your eligibility for different types of life insurance policies. Here are some options available to cancer patients:

• Guaranteed issue life insurance: This type of policy does not require a medical exam or health questions. It is more expensive and has lower death benefits compared to traditional policies. Cancer patients who cannot qualify for traditional coverage may find this option suitable, but it comes with higher rates and lower payouts.
• Simplified issue life insurance: This policy also does not require a medical exam, but you may need to fill out a short health questionnaire. It is an option for those who are cancer-free but not in perfect health.
• Final expense and funeral cost coverage: These policies are designed to cover final expenses and funeral costs. They typically have lower coverage amounts and graded death benefits, which means your beneficiaries may not receive the full payout if you pass away within a specified period (usually two to three years) after purchasing the policy.
• Traditional term and whole life insurance: If you are in remission and your cancer risk level has dropped, you may qualify for traditional term or whole life insurance policies. The waiting period to qualify for these policies varies depending on the insurance company and the type of cancer. It is generally recommended to wait for at least five years after treatment before applying.

Factors Affecting Life Insurance Eligibility for Cancer Patients

When evaluating your eligibility for life insurance, insurers consider various factors related to your cancer history and overall health. Here are some key factors that may impact your eligibility and rates:

• Date of diagnosis: The longer you've been in remission, the better your chances of qualifying for traditional life insurance. Insurers typically have a waiting period, often requiring at least five years in remission before offering traditional policies.
• Type of cancer: Different types of cancer have different survival rates. Cancers with higher survival rates or lower chances of recurrence will improve your chances of approval and qualifying for affordable premiums.
• Treatment, medications, and health: For traditional life insurance, you will need to provide details about your overall health, the treatments you've received, and their impact on your cancer.
• Lifestyle: Riskier lifestyles and hobbies, such as skydiving, can lead to higher insurance rates.
• Family history: A history of cancer in your family may also result in higher premiums.
• Relapses: Any relapses or recurrences of cancer can impact your ability to obtain traditional coverage.

It's important to note that each insurance company has its own criteria for eligibility, so it's recommended to shop around and compare different insurers to find the best coverage for your specific needs and health issues. Additionally, being honest and upfront about your health condition is crucial when applying for life insurance.

Cancer survivors can get their premiums down to baseline levels

Cancer survivors can get life insurance, but the type of cancer and the timing of their diagnosis will affect the availability and cost of their coverage. After being in remission long enough to see their risk level drop, cancer survivors may be able to get their premiums down to baseline levels.

The National Cancer Institute's SEER database, which stands for "Surveillance, Epidemiology, and End Results", is used by insurance companies to determine the life expectancy of cancer patients and survivors based on their diagnosis and stage. Life expectancy doesn't change much for some cancers that are detected early and treated. A stage 1 skin cancer survivor in remission will likely have similar premiums to a similar healthy individual. However, less treatable forms of cancer like pancreatic cancer can result in significantly higher premiums for eligible patients.

Insurance companies separate applicants into one of four categories to help them decide what rates to offer: Preferred Plus, Preferred, Standard Plus, and Standard. These categories are based on risk factors and demographic factors, and cancer is just one part of the equation. If you're young and otherwise healthy, a few years of remission may be enough to qualify for the "lowest risk" group, Preferred Plus, and get your premiums down to baseline levels.

It's important to note that the process of obtaining life insurance as a cancer survivor can be challenging, and the coverage specifics and premiums will differ from case to case. Cancer survivors may need to apply for guaranteed issue life insurance, which is a more expensive policy that doesn't require a medical exam. Additionally, traditional term or whole life policies can be difficult to qualify for, and cancer survivors may face higher rates or rejection. However, once cancer has been in remission for several years, it may be possible to switch to a traditional and more affordable policy.

Cancer type affects insurability

The type of cancer a person has will affect their ability to get life insurance. While a cancer diagnosis is not always a guaranteed barrier to obtaining life insurance, it can impede your ability to purchase traditional life insurance. The type of cancer and whether it spreads to other parts of the body will determine whether a person can get a traditional term or whole life insurance policy.

Non-melanoma skin cancers usually don't affect the price of life insurance, but a diagnosis of pancreatic cancer might make it nearly impossible to get coverage. Similarly, basal cell carcinoma (skin cancer) is not usually a concern for insurers, but small cell lung cancer is.

Other cancers that can affect insurability include:

• Bladder cancer
• Bone cancer
• Breast cancer
• Cervical cancer
• Colon cancer
• Kidney cancer
• Lung cancer
• Metastatic cancer
• Ovarian cancer
• Rectal cancer
• Skin melanoma

Cancer survivors can get guaranteed issue and whole/term policies

If you've been diagnosed with cancer, you may be wondering about your options for life insurance. The good news is that many life insurance companies are willing to insure cancer patients and survivors. However, you may have to pay higher rates, and the type of policy you can get may be limited.

If you're a cancer survivor, you can choose between guaranteed issue and whole/term policies. Guaranteed issue policies are available to almost all applicants, but the premiums can be surprisingly high, even for cancer survivors. On the other hand, traditional term or whole life policies can be challenging to qualify for. These policies offer lower premiums, but you may only be eligible for them once you're in remission.

The specifics of your diagnosis will also factor into the coverage you can get. Life insurance companies will consider the stage, type, and prognosis of your cancer when determining your rates. They may also use resources like the National Cancer Institute's SEER database to assess your life expectancy based on your diagnosis and stage.

While cancer may make it more difficult and expensive to obtain life insurance, it's not impossible. Cancer survivors have received excellent policies, and the right policy for you is out there.

Cancer patients can use life insurance to pay for treatment

Cancer patients may be able to use their life insurance policies to help cover their medical expenses or replace lost income. Here are some ways to do this:

Using your cash value

If you have built up cash value on your whole life insurance or universal life insurance policy before your cancer diagnosis, you may be able to use this to help cover your medical expenses or replace lost income. You could surrender your policy back to your insurer and receive the cash value in exchange, or you could borrow from your cash value via a life insurance loan. However, any funds owed at the time of your death would be deducted from your death benefit. This option is usually not available for term life insurance as it doesn't typically have cash value.

Life insurance riders

Your policy may have come with life insurance riders, or you may have added one to your policy. Depending on the rider, you may be able to activate it when you're diagnosed with cancer or at a certain point in your illness. By meeting the conditions required to activate these riders, you would be permitted to use some or all of your death benefit while you're still alive.

Accelerated death benefit (ADB) rider

Also called terminal illness riders, these allow you to receive a portion of the death benefit while you're still alive if you're diagnosed with a qualifying terminal illness. There may be a cap on the amount you can access, and the funds you use will be deducted from the death benefit when you pass away.

Chronic or critical illness rider

A specific type of accelerated death benefit, chronic illness riders allow you to access your death benefit if you meet certain requirements related to chronic or critical illnesses, as defined in your policy. The funds you use will be deducted from your death benefit.

Frequently asked questions