Cancer And Life Insurance: What Coverage Is Offered In Canada?

Life insurance is available for those with a history of cancer or a current diagnosis, but it can be challenging to find an insurer that will cover your needs. The type of cancer, how long it has been since diagnosis, and your prognosis are all factors that insurance companies will consider when determining your coverage options and rates. If you have been diagnosed with cancer, you may find that your rates are significantly higher for traditional term and whole life insurance policies, or your application may be rejected. However, there are other options available, such as simplified issue and guaranteed issue policies, which do not require a medical exam.

Life insurance for cancer patients

Yes, life insurance options are available for people who have been diagnosed with cancer or have a history of cancer. However, it can be challenging to qualify for a new traditional life insurance policy after a cancer diagnosis. You may need to apply for a guaranteed issue life insurance policy, which is more expensive and has a smaller payout.

Insurers will approve this type of policy without any of your medical information. Life insurance advisor, Tobin Tuff, says:

> "Guaranteed issue policies are more expensive than a traditional life insurance policy, with smaller payout options. And, like with most life insurance, there is a two-year waiting period. So if you pass before then, your loved ones will only get a return of premiums, not a payout."

If you've been cancer-free for a few years, you may be able to apply for a traditional term life insurance policy or permanent life insurance. The number of years you've been in remission depends on each company's policy rules.

Cancer patients who can't get traditional coverage, especially terminal cancer patients, may still qualify for simplified issue and guaranteed issue policies, also known as no medical exam life insurance. Your policy will have a higher rate and lower death benefit than a traditional policy, but you won't have to take a medical exam.

If you have a whole life insurance or universal life insurance policy, you may be able to use your policy to help cover 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.

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. By meeting the required conditions, you can use some or all of your death benefit while you're still alive.

The best life insurance companies for cancer patients in Canada include Canada Protection Plan, Assumption Life, and CIBC Life Insurance. These companies offer guaranteed issue policies, a type of life insurance that doesn't require a medical questionnaire or exam.

Life insurance for cancer survivors

If you're a cancer survivor, you may be wondering about your options for life insurance. The good news is that many life insurance companies are happy to insure cancer survivors. However, the specifics of your coverage and premiums will depend on several factors related to your cancer history and other factors.

Types of Life Insurance for Cancer Survivors

There are a few types of life insurance that may be available to cancer survivors:

• Guaranteed issue life insurance is available to almost every applicant but comes with surprisingly high premiums, even for cancer survivors.
• Whole/term life insurance policies can be difficult to qualify for, but they offer lower premiums. You may be able to qualify for these policies once you're in remission.
• Simplified issue life insurance does not require a medical exam, but you may need to fill out a short health questionnaire. This can be a good option if you're cancer-free but not in perfect health.
• Burial life insurance is designed for buyers over 50 and covers end-of-life costs such as funeral expenses and outstanding medical bills. No medical exam is required.

Factors Affecting Life Insurance for Cancer Survivors

Several factors will influence the availability and cost of life insurance for cancer survivors:

• Time since diagnosis and treatment: The more time that has passed since your cancer diagnosis and treatment, the lower your life insurance premiums will generally be. If you've been in remission for several years, you may even be able to apply for traditional life insurance.
• Remission and relapses: If you apply for Simplified Issue Life Insurance, you'll be asked about your remission status and whether you've had any relapses. The time you've been in remission will affect your insurance premiums.
• Family history of cancer: If cancer runs in your family, your risk of developing cancer or having a relapse is higher, which will impact your premiums.
• Type of cancer: Different types of cancer have different survival rates, which will affect your insurance rates. Less treatable forms of cancer, such as pancreatic cancer, can result in significantly higher premiums.
• Risk factors: Other risk factors, such as age, lifestyle, and family history, will also be considered when determining your insurance rates.

Tips for Getting Life Insurance as a Cancer Survivor

To increase your chances of getting life insurance after cancer, consider the following tips:

• Work with an experienced independent life insurance agent who specializes in impaired risk underwriting.
• Improve your overall health by eating healthy and exercising.
• Avoid tobacco use, as life insurance quotes for smokers are typically much higher.
• Avoid risky hobbies like mountain climbing, skydiving, and scuba diving, as these will factor into your quotes and increase your rates.
• Keep a clean driving and criminal record, as DUIs, arrests, and criminal convictions may affect your rate or disqualify you from coverage.

In conclusion, while a cancer diagnosis may impact your life insurance options and costs, there are still many possibilities available to ensure your family is taken care of. It's important to work with an experienced agent and shop around to find the best coverage for your specific needs and situation.

Cancer life insurance vs. cancer insurance

Cancer life insurance and cancer insurance are two different types of insurance that offer financial protection in the event of a cancer diagnosis. Here is a detailed comparison between the two:

Cancer Life Insurance

Cancer life insurance refers to traditional life insurance policies that provide coverage for various causes of death, including cancer. This means that if the insured person passes away due to cancer while the policy is active, their beneficiaries will receive a death benefit. Cancer life insurance policies can be term or whole life insurance plans. Term life insurance offers coverage for a specified period, such as 10 or 20 years, while whole life insurance provides coverage for the insured's entire lifetime.

Obtaining cancer life insurance after a cancer diagnosis can be challenging and may result in higher premiums or rejection of the application. The eligibility and rates depend on factors such as the type of cancer, survival rates, treatment history, and time since diagnosis. Some life insurance companies may require a waiting period of a few years after successful treatment before offering coverage. Additionally, cancer life insurance policies often require medical exams and detailed health information, including family medical history.

Cancer Insurance

Cancer insurance, on the other hand, is a disease-specific policy designed to provide financial support in the event of a cancer diagnosis. It is important to note that cancer insurance is not the same as life insurance for cancer patients. Cancer insurance typically covers medical expenses and treatment costs associated with cancer. It may also include additional benefits, such as income replacement or coverage for final expenses and funeral costs.

Cancer insurance policies are generally guaranteed issue or simplified issue policies, which means they do not require a medical exam or extensive health questions. These policies are usually available to individuals currently undergoing cancer treatment or those who have recently received a diagnosis. However, the coverage amounts tend to be lower, typically ranging from $5,000 to $25,000. Additionally, cancer insurance policies often have graded death benefits, meaning that if the insured person passes away within the first few years of purchasing the policy, their beneficiaries will not receive the full death benefit payout.

Key Differences

The main difference between cancer life insurance and cancer insurance lies in their purpose and scope of coverage:

• Cancer life insurance provides coverage for death due to any cause, including cancer, and offers higher death benefits.
• Cancer insurance specifically covers expenses related to cancer treatment and may include additional benefits to support the insured during their illness.

Cancer life insurance often requires medical underwriting, taking into account the insured's health status and cancer history, while cancer insurance usually has less stringent health requirements and is more accessible to individuals with cancer.

In conclusion, both cancer life insurance and cancer insurance offer financial protection, but they serve different needs. Cancer life insurance provides comprehensive coverage for various causes of death, including cancer, while cancer insurance focuses specifically on providing financial support for cancer-related expenses.

Getting life insurance with cancer

If you have been diagnosed with cancer, it can be challenging to qualify for a new traditional life insurance policy. However, it is still possible to get life insurance coverage. Here are some things to consider when seeking life insurance with cancer:

Types of Life Insurance Policies for Cancer Patients

• Guaranteed issue life insurance: This type of policy does not require any medical screening, and you will be accepted regardless of your health condition. However, it is more expensive than traditional life insurance, with smaller payout options and a two-year waiting period before the full death benefit is paid out.
• Simplified issue life insurance: Also known as no medical life insurance, this type of policy has no medical exam requirement but includes a short medical questionnaire. It typically has higher rates and lower coverage limits than traditional insurance.
• Traditional life insurance: If your cancer diagnosis was at least 5-10 years ago and you have been stable since then, you may be able to qualify for traditional life insurance. However, the rates may be higher to cover the risk, and the application process will include an extensive questionnaire about your health and cancer history.

Factors Affecting Life Insurance with Cancer

When applying for life insurance with cancer, several factors will impact the type of policy you can obtain and the premiums you will pay:

• Time since diagnosis: The longer it has been since your cancer diagnosis and treatment, the lower your life insurance premiums are likely to be. If you have been in remission for several years, you may even be able to apply for traditional life insurance.
• Remission and relapses: If you apply for simplified issue life insurance, you will be asked about your remission status and whether you have had any relapses. The time you have been in remission will affect your insurance premiums.
• Family history: If cancer runs in your family, your risk of developing cancer or having a relapse is higher, which will be considered by the insurance company.
• Type and stage of cancer: Different types of cancer have different associated mortality rates, and insurers may treat them differently. The stage of your cancer will also impact your eligibility for certain policies.
• Overall health and medical history: In addition to cancer, your overall health and medical history will be considered. If you have other health conditions in addition to cancer, your options may be more limited.

Tips for Getting Life Insurance with Cancer

When seeking life insurance with cancer, consider the following tips:

• Be honest about your medical history when applying for life insurance. Failure to disclose information about your cancer may result in the policy being denied or cancelled.
• Work with an experienced insurance broker who can help you find the best policy for your specific needs and situation.
• Shop around and compare quotes from different insurance companies, as the cost and coverage options can vary significantly.
• Consider guaranteed issue life insurance as a last resort, as it is the most expensive option with the smallest payouts.
• If you are a cancer survivor who has been in remission for several years, you may have more options, including traditional term life insurance or permanent life insurance.

Using life insurance to pay for cancer treatment

Cancer patients may be able to qualify for some life insurance policies. If you already have a policy and are receiving cancer treatment, your beneficiaries will receive the death benefit if you pass away due to cancer and your policy is still active.

Using your cash value

If you build up cash value on your whole life or universal life insurance policy before your cancer diagnosis, you may be able to use your policy 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 (any owed funds at the time you pass away would be deducted from your death benefit). These options may not apply to term life insurance since it doesn't typically have cash value.

Using a life insurance rider

A rider is an optional add-on or provision that you can use to supplement your life insurance plan. While some riders cost extra, others are included in your premium payments. You may be able to activate a rider when you're diagnosed with cancer, or at a certain point during your illness. By meeting the conditions required to activate these riders, you'd 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 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.

Cancer insurance

Cancer insurance is a supplemental policy that can help you cover treatment costs in case you get diagnosed with cancer. It offers coverage 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.

Frequently asked questions