Cancer And Life Insurance: What You Need To Know

Life insurance is a useful financial tool that can help you pay off debts and provide for your family after your death. However, for those with cancer or a history of cancer, obtaining life insurance can be challenging and expensive. While some insurers may deny coverage outright, others may offer coverage at significantly higher rates, depending on factors such as the type and stage of cancer, treatment history, prognosis, and survival rate. This article will explore the options available for individuals seeking life insurance with a cancer diagnosis and discuss the impact of cancer on life insurance eligibility and costs.

Life insurance for cancer patients: options and costs

If you have cancer or have had it in the past, you may find it more difficult to get life insurance. The type of cancer and the stage it is at are factors that insurance companies take into account.

Options for cancer patients

If you are looking for life insurance with pre-existing cancer, there are still options available.

• Simplified issue or guaranteed issue life insurance – These policies won't deny you coverage based on pre-existing conditions like cancer. Simplified issue is for those with good or fair health, and only requires answers to a few medical questions. Guaranteed issue is geared towards those who are older or have health problems and generally requires no medical information. The trade-off is that premiums are higher and the death benefit may be lower.
• Group life insurance – This can be offered by your employer, either at no cost or a reduced cost. It's typically guaranteed coverage and you won't lose your policy if you develop cancer. However, it only exists while you're employed and there may be coverage limits.
• Final expense life insurance – Also known as burial or funeral insurance, this is designed to cover funeral costs and end-of-life expenses. Some plans include health questions, while others are guaranteed issue plans.
• Life insurance riders – If you already have a life insurance policy, you may be able to add riders for additional benefits. An accelerated death benefit rider, for example, allows those with terminal illnesses to receive their death benefit while alive.
• Cancer insurance – This niche product provides cash benefits for medical bills and other expenses if you get cancer. However, it usually must be purchased before getting cancer or after many years of remission.

Costs of life insurance for cancer patients

Cancer patients will likely pay higher premiums for life insurance. The cost will depend on factors such as the type and stage of cancer, treatment history, diagnosis duration, prognosis, and survival rate.

Tips for improving your chances of getting life insurance after cancer

• Improve your overall health by eating healthy and exercising.
• Don't use tobacco.
• Work in a low-risk profession.
• Avoid risky hobbies like mountain climbing, skydiving, and scuba diving.
• Keep a clean driving and criminal record.
• Compare life insurance companies to find the most cost-friendly option for cancer survivors.

Getting life insurance after a cancer diagnosis

Being diagnosed with cancer can be emotionally and financially challenging, and it can also impact your ability to obtain life insurance. Here are some things to consider if you're looking for life insurance after a cancer diagnosis:

Impact of cancer on life insurance eligibility

Cancer patients are considered higher-risk by insurance companies, and this can affect your eligibility for life insurance. Your prognosis, treatment, and time since diagnosis or remission will play a role in the insurance company's decision. Some companies may approve those in remission for at least five years, while others may require a longer waiting period or deny coverage altogether. The type of cancer and its stage, the treatments received, and any other health issues will also be taken into account.

Types of life insurance available for cancer patients

If you're currently living with cancer or undergoing treatment, traditional life insurance policies may not be an option. However, there are alternative types of life insurance that you can consider:

• Simplified Issue or Guaranteed Issue Life Insurance: These policies don't require a detailed medical history or medical exams, and you won't be denied coverage because of pre-existing conditions like cancer. Simplified issue policies are for those with good or fair health, while guaranteed issue policies are geared towards older individuals or those with health problems. The trade-off is that premiums are typically higher, and the death benefit may be lower.
• Group Life Insurance: Some employers offer group life insurance as an employee benefit, which can be beneficial for cancer patients as it often comes in the form of guaranteed issue. This means you won't be penalized for your cancer diagnosis, but the coverage may be limited and tied to your salary.
• Life Insurance Riders: If you already have a life insurance policy, you may be able to add riders for additional benefits. An accelerated death benefit rider, for example, allows those diagnosed with certain terminal illnesses to receive a portion of their death benefit while alive.
• Cancer Insurance: Some insurance companies offer niche products called cancer insurance, which provide cash benefits specifically for cancer-related expenses. However, these policies usually must be purchased before a cancer diagnosis or after a long period of remission.

Finding life insurance while in remission

If you've achieved remission, your options for life insurance may expand. Traditional life insurance policies, such as term or whole life insurance, may become available to you. The waiting period for coverage after remission varies by insurance company and cancer type. Some insurers may require as little as two years, while others may require up to ten years. It's important to shop around and compare quotes from multiple insurers, as costs and restrictions can vary significantly.

Tips for increasing your chances of getting life insurance after cancer

To improve your chances of obtaining life insurance after a cancer diagnosis:

• Work with an experienced independent life insurance agent who specializes in impaired risk underwriting.
• Improve your overall health by adopting healthy habits such as eating well and exercising.
• Avoid tobacco use, as life insurance quotes for smokers are typically much higher.
• Consider your occupation and avoid high-risk professions, as they may result in higher premiums.
• Refrain from risky hobbies like mountain climbing, skydiving, or scuba diving, as they will also factor into your quotes and increase rates.
• Maintain a clean driving and criminal record, as DUIs, arrests, and criminal convictions may affect your rate or eligibility.

Cancer history and life insurance eligibility

A cancer diagnosis can be emotionally and financially challenging, and life insurance can help provide peace of mind for you and your loved ones. While a cancer history may not disqualify you from obtaining life insurance, it can impact your eligibility and the cost of coverage. Here's what you need to know about life insurance eligibility if you have a history of cancer.

Impact of Cancer History on Life Insurance Eligibility

Having a history of cancer can make it more difficult to obtain life insurance, as insurers consider cancer patients to be high-risk individuals. The specific type and stage of cancer, as well as the treatment received and time since remission, will all be factors in determining your eligibility. Some insurers may approve coverage for certain types of cancer, especially if it was caught early and is in remission. However, it's important to note that each insurance company has its own underwriting guidelines, and approval is not guaranteed.

Types of Life Insurance Available for Cancer Patients

If you are currently living with cancer or are in the early stages of remission, you may not qualify for traditional life insurance policies. In these cases, alternative options are available:

• Simplified Issue or Guaranteed Issue Life Insurance: These policies do not require a medical exam or a detailed medical history, and you cannot be denied coverage due to pre-existing conditions like cancer. However, the premiums tend to be higher, and the death benefit may be lower. Additionally, there may be a graded benefit period, meaning your family may not receive the full death benefit if you pass away within a few years of purchasing the policy.
• Group Life Insurance: Some employers offer group life insurance as an employee benefit, which can be beneficial for cancer patients as it often comes in the form of guaranteed issue coverage. This type of insurance is typically cheaper and easier to qualify for compared to individual policies.
• Life Insurance Riders: If you already have a life insurance policy, you may be able to add riders that allow you to access some or all of your death benefit while still alive to help with expenses related to cancer treatment.
• Cancer Insurance: This is a niche product that provides cash benefits specifically for cancer-related expenses. However, it usually must be purchased before a cancer diagnosis or after a long period of remission.

Factors Affecting Life Insurance Eligibility and Cost

When determining your eligibility and the cost of life insurance, insurers will consider various factors related to your cancer history and overall health:

• Family's cancer history: A strong family history of cancer may indicate an increased risk for you.
• Type and stage of cancer: Cancers with higher survival rates and lower recurrence rates may make you less risky in the eyes of insurers.
• Treatments received: The type of treatment you received, such as chemotherapy, radiation, or surgery, will be considered.
• Time since last treatment and remission: Insurers typically require a minimum wait period after your last cancer treatment before offering coverage. This can vary from two to ten years, depending on the insurance company and the type of cancer.
• Lifestyle habits: Factors such as alcohol or tobacco use can increase your risk for other health complications.
• Other health issues: Pre-existing health conditions, such as diabetes or high blood pressure, can also impact your eligibility and the cost of coverage.

Maintaining Existing Life Insurance After a Cancer Diagnosis

If you already have a life insurance policy in place before your cancer diagnosis, it is important to review the terms of your policy. In most cases, your coverage should remain in force, and your loved ones will receive the death benefit if you pass away from cancer. However, it is crucial to ensure that you continue to pay your premiums and be truthful about your medical history to avoid any issues with claiming benefits.

In summary, while a cancer history may impact your life insurance eligibility and costs, there are still options available to ensure you and your loved ones have financial protection. It is important to carefully review the terms and conditions of different policies and consult with an independent insurance agent to find the best coverage for your specific needs.

Types of life insurance for cancer patients

A cancer diagnosis can impede your ability to purchase traditional life insurance, but it is not always a guaranteed barrier. The type of cancer and its progression are factors that insurance companies consider when assessing the risk and determining an offer. For example, non-melanoma skin cancers usually don't affect the price of life insurance, while a pancreatic cancer diagnosis might make it nearly impossible to get coverage.

If you are looking for life insurance with pre-existing cancer, you will likely be able to qualify for guaranteed issue, group life, and final expense life insurance coverage, which provides coverage for final expenses and funeral costs. However, the two most common types of life insurance—term and whole—may not be available to you after a cancer diagnosis.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance plans can work for those currently in cancer treatment or following a diagnosis because they don't require a medical exam or usually ask any health questions. You generally cannot be rejected for these types of life insurance, as long as you fall within the eligible age range. However, coverage amounts can be low—$25,000 is typically the maximum amount available.

Group Life Insurance

In some cases, you may be able to access group life insurance through your employer. This can be beneficial for cancer patients because it can often come in the form of guaranteed issue. If a guaranteed issue is an option, you likely won't be penalized for your cancer diagnosis.

Final Expense Life Insurance

Also known as burial or funeral insurance, final expense life insurance is a policy typically designed for older adults to cover funeral costs and end-of-life expenses. Some final expense plans include a few health questions on the application, while others are guaranteed issue plans without health requirements.

Simplified Issue Life Insurance

While there is no medical exam with simplified issue life insurance, you may have to fill out a short health questionnaire. If you are cancer-free but not in perfect health, simplified issue can be a good choice.

Burial Life Insurance

Designed for life insurance buyers over age 50, burial insurance is meant to pay for end-of-life costs, such as funeral expenses and outstanding medical bills. No medical exam is required to obtain this coverage.

Permanent Life Insurance

Permanent life insurance types may be an option, such as whole life insurance and universal life insurance. These policies can provide life insurance as long as you live, assuming you pay the premiums.

Life insurance for cancer survivors

If you have been diagnosed with cancer, it can be challenging to qualify for a new traditional life insurance policy. However, it is not impossible, and there are alternative options available. Here is some information on life insurance for cancer survivors.

Qualifying for Life Insurance After Cancer

If you have been recently diagnosed with cancer or are in treatment, you may be able to qualify for guaranteed issue, group life, or final expense life insurance. These policies often don't require a medical exam and can provide coverage for final expenses and funeral costs. The two most common types of life insurance—term and whole life insurance—may not be available to you until you have been in remission for a minimum of five years.

Waiting Periods for Different Types of Cancer

Waiting periods for life insurance after cancer vary depending on the type of cancer and the insurer. Here are some examples of waiting periods for various types of cancer:

• Bladder cancer: 2 years
• Breast cancer: 2 years
• Cervical cancer: 1 year
• Colon cancer: 2 years
• Lung cancer: 3 years
• Skin melanoma: 1 year
• Prostate cancer: 1 year

Cost of Life Insurance for Cancer Survivors

Tips for Increasing Your Chances of Getting Life Insurance After Cancer

To increase your chances of obtaining life insurance after cancer, consider working with an experienced independent life insurance agent who specializes in impaired risk underwriting. Additionally, improving your overall health, avoiding tobacco, and avoiding risky hobbies or professions can also help increase your chances of getting approved for life insurance.

Frequently asked questions