Life Insurance And Skin Cancer: What's Covered?

Skin cancer is the most common type of cancer, with around one in five Americans expected to develop it in their lifetime. If you're one of them, you may be wondering how it will affect your life insurance. The good news is that a diagnosis doesn't mean life insurance is out of the question. In fact, many life insurance companies happily insure cancer patients and survivors. However, the type of skin cancer, the stage, and the treatment will all be factors in determining your risk class and subsequent rates.

Life insurance options for skin cancer patients

Being diagnosed with skin cancer can be distressing, and you may wonder about your options for life insurance. It's important to know that a cancer diagnosis does not always prevent you from obtaining life insurance, although your options may be limited and more expensive. Here are some life insurance options to consider if you are a skin cancer patient:

Guaranteed Issue Life Insurance:

This type of policy is often the only option for those currently undergoing cancer treatment. It does not require a medical exam or health questions, but the premiums are typically higher, and the coverage amounts are lower, usually up to $25,000. Additionally, these policies usually have graded death benefits, meaning your beneficiaries may not receive the full payout if you pass away within the first two to three years of the policy.

Simplified Issue Life Insurance:

Simplified issue life insurance does not require a medical exam, but you will likely need to answer some health questions on the application. The coverage amounts may be lower compared to other policies. This type of insurance may be suitable if you are cancer-free but not in perfect health.

Term Life Insurance:

Term life insurance is one of the most common types of life insurance. It allows you to lock in rates for a certain period, such as 10 or 20 years. However, it may be challenging to qualify for this type of insurance immediately after a cancer diagnosis. If you are in remission for a few years, your chances of obtaining term life insurance improve, but you will likely need to undergo a medical exam and answer questions about your previous cancer treatment.

Permanent Life Insurance:

Permanent life insurance, such as whole life insurance and universal life insurance, can provide coverage for as long as you live, assuming you pay the premiums. These policies may be an option for skin cancer patients, depending on the type of cancer, treatment options, and prognosis. However, your rates may be affected.

Group Life Insurance:

Some employers offer group life insurance plans that require minimal or no contribution from employees. These plans usually offer limited coverage amounts based on your salary, and you cannot keep the coverage if you leave your job.

Final Expense/Burial Life Insurance:

Also known as burial insurance, this type of policy is designed for older adults to cover funeral costs and end-of-life expenses. Final expense plans may include health questions or be guaranteed issue plans without health requirements. The coverage amounts are typically lower, and the premiums can be higher.

When exploring life insurance options as a skin cancer patient, it is essential to research multiple insurers and find one that best meets your needs. The waiting period after cancer treatment, coverage amounts, and premium costs can vary between insurers, so working with an experienced independent life insurance agent can be beneficial.

Factors that determine eligibility for life insurance coverage

Several factors determine an individual's eligibility for life insurance coverage. Here are some key considerations:

Age and Gender

An individual's age is a significant factor in determining eligibility and premium costs for life insurance. Generally, younger people have lower premiums as they have longer life expectancies and are less likely to become ill. The cost of life insurance premiums typically increases by 8% to 10% for every year of age. Additionally, women tend to pay lower premiums than men since they have a higher average life expectancy.

Health Status

Insurers consider an applicant's overall health status, including vital metrics such as height, weight, blood pressure, cholesterol, and other medical conditions. Serious illnesses, such as cancer, heart disease, high blood pressure, and depression, can increase premiums or affect eligibility. The type and severity of cancer, as well as the treatment received, are crucial factors in assessing the risk class for life insurance coverage.

Family Medical History

A family history of serious medical conditions, such as cancer, stroke, or heart disease, can also influence life insurance rates and eligibility. Insurers are particularly interested in conditions experienced by parents and siblings, especially if they contributed to premature death.

Lifestyle and Habits

An individual's lifestyle and habits can impact their life insurance eligibility and premiums. Smoking, for example, is a high-risk factor that leads to significantly higher rates. Additionally, risky hobbies, such as racing cars, scuba diving, or rock climbing, can result in substantially higher premiums.

Occupation

Certain occupations are considered hazardous or risky and can lead to higher life insurance rates. These include jobs such as logging, piloting, roofing, police work, firefighting, and mining.

Driving Record and Criminal History

Insurers often review an applicant's driving record, and a history of DUIs, reckless driving, or license suspensions can result in higher rates or even denial of coverage. A criminal record, especially for felonies, can also impact eligibility and increase rates.

These factors, among others, are carefully assessed by insurance companies to determine an individual's eligibility and premium costs for life insurance coverage. It is important to note that different insurers may have varying guidelines and criteria, so it is advisable to research and compare options to find the most suitable coverage.

Life insurance rates for skin cancer patients

It is possible to get life insurance if you have had skin cancer. However, the type of skin cancer, treatment, prognosis, and other factors will determine your eligibility for coverage. The best way to find insurance is to shop around, ask an insurance agent for suggestions, and keep looking.

Skin cancer patients may be able to qualify for guaranteed issue, group life, and final expense life insurance coverage, which provides 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 after a skin cancer diagnosis.

When insuring individuals with a history of skin cancer, insurance companies are interested in several parameters to gauge the risk the individual poses. These include:

• The date of the first diagnosis and how much time has passed since then.
• The type of skin cancer—basal cell carcinoma, squamous cell carcinoma, or malignant melanoma.
• Whether the cancer has metastasized (spread) beyond the skin.
• The stage and grade of the cancer.
• The treatment received and whether there has been any recurrence.
• The current status of the individual's health, including any ongoing treatment or medications.

When applying for life insurance with skin cancer, individuals will be asked several questions about their medical history and treatment. It is important to be honest and provide accurate information. The insurance company will also likely request the individual's medical records to confirm the diagnosis and treatment history.

The rates for life insurance for skin cancer patients can vary depending on the insurance company and the individual's circumstances. The type of skin cancer, the severity of the condition, the treatment received, and the prognosis will all factor into the rate. For example, individuals with basal cell carcinoma may get preferred or preferred best rates, while those with squamous cell carcinoma may be assigned a standard rate. Those with malignant melanoma, the most aggressive form of skin cancer, may be offered a substandard rate with significantly higher premiums.

Case studies:

Case Study 1: John, a 45-year-old individual with basal cell carcinoma, the most common type of skin cancer. He underwent treatment and has been cancer-free for over five years. He applies for a $500,000 life insurance policy and is assigned a preferred rate, which is a lower premium compared to standard rates.

Case Study 2: Sarah, a 38-year-old individual with squamous cell carcinoma, the second most common type of skin cancer. She underwent treatment and has been in remission for three years. Sarah applies for a $250,000 life insurance policy and is assigned a standard rate, which is a slightly higher premium than preferred rates.

Case Study 3: Mark, a 50-year-old individual with malignant melanoma, the most aggressive form of skin cancer. He underwent treatment and has been in remission for two years. Mark applies for a $1,000,000 life insurance policy and is offered a substandard rate with significantly higher premiums due to the high risk associated with malignant melanoma.

The application process for life insurance after skin cancer

If you are applying for life insurance after a skin cancer diagnosis, it is important to be aware that the process may be more complex and time-consuming than a standard application. Here is a step-by-step guide to help you navigate the application process:

Step 1: Meet with a life insurance agent

Consulting with a life insurance agent is a crucial first step. They can guide you through the process, address your concerns, and provide valuable advice on how life insurance fits into your financial strategy. They can also answer essential questions, such as the cost of coverage with your pre-existing condition and the potential impact of a cancer diagnosis on existing policies.

Step 2: Research insurers and explore your options

Not all insurance companies will view your skin cancer history in the same way. It is important to research and compare different insurers to find one that best meets your needs. Factors such as the type of skin cancer, treatment options, and prognosis will play a role in determining your eligibility and rates. Some companies may have waiting periods after cancer treatment before you can apply for coverage.

Step 3: Gather your medical records

When applying for life insurance after skin cancer, be prepared to provide detailed information about your medical history. The insurance company will likely request your medical records to confirm your diagnosis, treatment history, and prognosis. Have these records readily available to streamline the underwriting process.

Step 4: Complete the application and answer health questions

• What type of skin cancer were you diagnosed with?
• When were you diagnosed?
• What treatment did you receive, and was the cancer removed?
• Did the cancer spread or metastasize?
• Have you had multiple occurrences?
• Do you have regular follow-ups with your doctor or dermatologist?

It is essential to be honest and provide accurate information during this process. Withholding details about your medical history could lead to penalties or affect the death benefit for your beneficiaries.

Step 5: Understand the impact on rates and coverage

Skin cancer is a pre-existing condition that will impact your life insurance rates and coverage options. The type of skin cancer, its severity, and your overall health will determine your risk class and the corresponding rates. Basal cell and squamous cell carcinomas, the most common forms of skin cancer, typically fall under the "standard" rate class. Melanoma, a more serious form of skin cancer, often results in "substandard" rates and may lead to a decline if there is a recurrence.

Step 6: Explore alternative options if necessary

If you are unable to obtain traditional life insurance due to your skin cancer history, there are alternative options available. Guaranteed issue life insurance and final expense life insurance are two types of coverage that do not require a medical exam or health questions, although they may have higher premiums and lower coverage amounts.

Preventing skin cancer

Skin cancer is the most common cancer in the United States, with around one in five Americans expected to develop it during their lifetime. It is caused by exposure to harmful ultraviolet (UV) radiation from the sun, which can also cause premature aging. Sun damage accumulates over the years, even from simple outdoor activities like walking the dog or running errands.

Seek Shade

Ultraviolet rays are strongest between 10 am and 4 pm, so it is important to seek shade during these times. If your shadow is shorter than you are, it's time to find some shade!

Avoid Sunburn

Getting sunburnt is a clear sign of skin damage, so it is important to avoid it. This includes avoiding tanning beds, which give off UV radiation and can cause skin cancer and premature aging.

Cover Up

Wear sun-protective clothing, such as a lightweight and long-sleeved shirt, pants, a wide-brimmed hat, and sunglasses with UV protection. Clothing with an ultraviolet protection factor (UPF) label will provide more effective protection.

Use Sunscreen

Apply a broad-spectrum, water-resistant sunscreen with an SPF of 30 or higher. Broad-spectrum sunscreen protects against both UVA and UVB rays. Use sunscreen every day, even when it's cloudy, and reapply every two hours or after swimming or sweating. For babies, it is recommended to use sunscreen on babies over six months old.

Examine Your Skin

Perform regular skin self-exams to detect skin cancer early, and see a dermatologist at least once a year for a professional skin exam. Look for new or suspicious spots on your skin, or anything that is changing, itching, or bleeding.

Frequently asked questions