Life Insurance And Breast Cancer: Impact And Options

A breast cancer diagnosis can have a significant impact on a person's life, including their financial wellbeing. For those with term life insurance, it's important to understand how this diagnosis might affect their coverage. While a cancer diagnosis does not necessarily prevent someone from obtaining life insurance, it can make it more challenging and expensive. The availability and cost of life insurance will depend on several factors, including the stage of cancer, the treatment received, and the patient's current health. Insurance companies typically consider cancer a high-risk condition and charge higher premiums to offset that risk. This article will explore the impact of breast cancer on term life insurance and provide guidance on securing the best policy for individuals in this situation.

Getting life insurance with breast cancer

If you are currently going through treatment for breast cancer, you will not be approved for traditional life insurance. However, if you are in remission, traditional life insurance is an option.

Prepping for the application process

Before you begin your search for the best life insurance company for you, it's important to be prepared for the application process. The insurer will need specifics about your condition, so you'll need to gather important health information, including:

• A summary of your illness, including the date of the diagnosis, the type of cancer you were diagnosed with (including the stage and grade), and how it was treated.
• A summary of your current health, including positive and proactive points such as being a non-smoker or non-drinker, healthy eating habits, and regular exercise.
• A list of physicians and other medical professionals who have treated you and continue to do so.
• Your treatment plan, including a list of past treatments and any planned future treatments, with start and stop dates for chemotherapy.
• Any medications you are currently taking.

Finding the best life insurance company for you

According to the Susan G. Komen website, there are certain things breast cancer survivors should keep in mind when working with a life insurance provider:

• Work with an agent or company licensed by the state insurance department and check the insurer's financial stability.
• Fully understand the policies and procedures of the company.
• Ask questions about anything unclear, especially pre-existing conditions and any possible waiting periods.
• Thoroughly review your application for errors, as incorrect information could result in a denial of benefits or termination of your policy.

Types of life insurance

There are different types of life insurance, including term life insurance, whole-life insurance, family income benefit insurance, and endowment policies. Term life insurance is the most basic type and has three variations: level term, decreasing term, and increasing term. Level term insurance pays a fixed amount, decreasing term insurance pays out a decreasing amount over time, and increasing term insurance increases the payout over the course of the policy, usually in line with inflation.

Whole-life insurance covers you for your entire life and can be more expensive, while family income benefit insurance pays out a regular income rather than a lump sum. Endowment policies are long-term investment products that include life insurance and allow you to invest part of the premiums.

Life insurance waiting periods for cancer patients

The length of the waiting period for life insurance after cancer varies depending on the type of cancer and the insurer. Here are some sample waiting periods for various types of cancer:

• 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

Tips to increase your chances of getting life insurance after cancer

To increase your chances of getting life insurance after cancer, consider working with an experienced independent life insurance agent who can shop around for you and target companies likely to be cost-friendly for cancer survivors. Additionally:

• Improve your overall health by eating healthily and exercising.
• Don't use tobacco, as life insurance quotes for smokers are typically much higher.
• Work in a low-risk profession, as certain occupations may experience higher premiums.
• Avoid risky hobbies like mountain climbing, skydiving, and scuba diving, as they will factor into your quotes and cause higher rates.
• Keep a clean driving and criminal record, as DUIs, arrests, and criminal convictions may affect your rate or disqualify you from coverage.

The impact of cancer stage on life insurance

The impact of cancer on life insurance depends on the type and stage of cancer, as well as the individual's health and medical history. Here is an overview of how the stage of cancer may affect life insurance:

Active Cancer:

If an individual is currently undergoing treatment for cancer, they will not be approved for traditional life insurance. The specific type and stage of cancer will determine the impact on insurability. Some cancers, like non-melanoma skin cancer, may not affect life insurance rates at all if the individual is otherwise healthy. However, other types of cancer, such as pancreatic or small cell lung cancer, may make it very difficult or even impossible to obtain coverage. The spread of cancer to other parts of the body also increases the risk and can impede insurability.

Cancer Remission:

For individuals in cancer remission, the likelihood of obtaining life insurance improves, especially if they are cancer-free for several years. The waiting period for life insurance after cancer varies depending on the type and stage of cancer. For example, individuals with breast cancer typically need to wait for two years before becoming eligible for life insurance again. The longer an individual has been in remission and the healthier they are, the better their chances of obtaining coverage. It is important to provide detailed medical records and demonstrate adherence to prescribed treatment plans during the application process.

Family History of Cancer:

A family history of cancer can also impact life insurance rates and eligibility. Insurance companies will consider the number of relatives diagnosed, their ages at diagnosis, and the type of cancer they had. While a family history of cancer does not automatically disqualify an individual from obtaining life insurance, it may result in higher rates or affect eligibility for certain policies.

The effect of treatment type on life insurance

The treatment type and prognosis will have a significant impact on life insurance options and costs. If you are currently undergoing treatment for breast cancer, you will not be approved for traditional life insurance. However, there are alternative options, such as guaranteed issue life insurance, which may be available to you. These policies often have lower coverage amounts and graded death benefits, meaning your beneficiaries may not receive the full payout if you pass away within a few years of purchasing the policy.

Once you are in remission, traditional life insurance becomes an option. The longer you've been in remission, the better your chances of getting approved for traditional life insurance. Most insurance companies will require a minimum of two to five years of remission before offering coverage. During this waiting period, it is essential to maintain your health by eating nutritious meals and exercising. Avoiding tobacco and risky activities, such as skydiving, can also improve your chances of obtaining life insurance.

When applying for traditional life insurance after cancer treatment, you will likely need to undergo a medical examination and provide detailed information about your previous cancer diagnosis and treatment. The specifics of your diagnosis, including the type and stage of cancer, will factor into the coverage you may qualify for. Underwriters will carefully review pathology reports, staging information, treatments given, and any possible adverse effects related to treatment.

The cost of life insurance after cancer treatment can be significantly higher than for individuals without a history of cancer. You may expect to pay two to four times more for a term life or whole life insurance policy compared to a healthy individual. The cost will depend on your age, type of cancer, and how long you have been cancer-free.

To find the best life insurance options for your situation, it is recommended to work with an independent insurance agent who has experience working with cancer survivors. They can help you navigate the different types of policies, such as term life, whole life, and universal life insurance, and find the most cost-friendly options for your needs.

How long to wait after treatment for life insurance

If you have been diagnosed with breast cancer, you may find it difficult to obtain life insurance. However, it is not impossible. The best course of action is to consult an independent financial advisor or insurance broker, who can help you find the right insurance for your situation.

If you are currently undergoing treatment for breast cancer, you will not be approved for traditional life insurance. However, there are other options available, such as guaranteed issue life insurance, which provides coverage for final expenses and funeral costs. These policies generally do not require a medical examination or health questions, and you cannot be turned down. However, the coverage amounts are typically low, and the policies have graded death benefits, meaning that if you pass away within a few years of purchasing the policy, your beneficiaries will not receive the full payout.

If you are in remission, traditional life insurance may be an option. Most insurance companies will require you to be in remission for a minimum of five years before offering you coverage. The waiting period can vary depending on the type of cancer, its invasiveness, and the chance of recurrence. For example, some companies may require a 10-year remission period for certain cancers.

It is important to note that even if you are able to obtain life insurance after breast cancer treatment, your premiums may be significantly higher than those of a healthy individual. This is because insurance companies use a classification system to determine rates, and individuals with a history of cancer are typically designated as "substandard," resulting in higher premiums.

To increase your chances of obtaining life insurance after cancer treatment, it is recommended to work with an experienced independent life insurance agent who specializes in impaired risk underwriting. Additionally, improving your overall health, avoiding tobacco, and engaging in low-risk professions and hobbies can also help lower your premiums.

Increasing life insurance coverage after breast cancer

If you already have life insurance and are then diagnosed with breast cancer, your insurance company should honour your policy as long as you were honest about your medical history when you took out the policy. However, you may find it difficult to increase the value of your policy for some years.

If you are looking to increase your cover, you can ask your adviser about using a 'special event option'. This means you can increase the cover with no underwriting, subject to certain events happening in your life, such as the birth of a child, marriage, or moving house.

If you are looking to buy a new life insurance policy after a breast cancer diagnosis, it may be more challenging to get coverage, and the coverage available to you will depend on the specifics of your diagnosis and treatment.

Application Process

Before beginning your search for a life insurance company, it is important to be prepared for the application process. The insurer will need specifics about your condition, so you will need to gather important health information, including:

• A summary of your illness, including the date of diagnosis, the type of cancer, the stage and grade, and how it was treated.
• A summary of your current health, including positive points such as being a non-smoker, healthy eating habits, and regular exercise.
• A list of physicians and other medical professionals who have treated you and continue to do so.
• Your treatment plan, including past treatments and any planned future treatments, with start and stop dates.
• Any medications you are currently taking.

Choosing a Life Insurance Company

When choosing a life insurance company, it is important to work with an independent insurance agent who specializes in high-risk life insurance and can help you find the right company for your individual needs. You should also ensure that the company is licensed by the state insurance department and check its financial stability.

It is crucial to understand the policies and procedures of the life insurance company and ask questions about anything unclear, especially regarding pre-existing conditions and waiting periods.

Waiting Periods and Costs

The waiting period for life insurance after breast cancer varies depending on the severity of the cancer. For Stage 1 breast cancer, the waiting period is typically 3-6 months after completing treatment. For Stage 2A breast cancer, the waiting period is usually 5 years, while for Stage 2B, it is 5-10 years. For more advanced stages of breast cancer, the waiting periods can be even longer.

Once you are eligible for life insurance, the cost will depend on several factors, including the stage of your cancer, the treatment received, and your current health. The first premiums will be high due to the increased risk for the insurance company, and you may be charged a flat extra of $600-$1,000 per $100,000 in coverage for 3-5 years.

Tips for Increasing Your Chances of Getting Life Insurance

To increase your chances of obtaining life insurance after breast cancer, consider the following:

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

Frequently asked questions