Cancer And Life Insurance: Can You Get Covered?

Cancer is the second most common cause of death, with around 600,000 people dying from the disease each year in the US alone. As a result, many people opt for life insurance to ensure financial security for their loved ones. But what happens if you're diagnosed with cancer? Is it possible to get life insurance if you're already battling the disease?

The short answer is yes, it is still possible to qualify for some types of life insurance after a cancer diagnosis, but your options may be limited and costlier. Your ability to get life insurance will depend on various factors, including the type of cancer, the stage of the disease, your treatment plan, and how much time has passed since your diagnosis or remission.

If you already have life insurance and are then diagnosed with cancer, your policy should remain in place as long as you continue to pay your premiums. However, if you're applying for a new policy after a cancer diagnosis, you may face some challenges. Most life insurance companies will deny coverage for new policies to cancer patients currently undergoing treatment. After a few years in remission, your chances of qualifying for a traditional policy may improve.

Cancer patients' life insurance options

A cancer diagnosis can be life-altering, and you may wonder about your options for life insurance. Here are some things to keep in mind:

Impact of Cancer on Life Insurance Eligibility

The impact of cancer on your life insurance eligibility depends on various factors, including the type and stage of cancer, your treatment plan, and how long it has been since your diagnosis or remission. Most life insurance companies deny coverage for new policies to cancer patients undergoing treatment. However, there are alternative options available.

Types of Life Insurance Available for Cancer Patients

If you are currently living with cancer, your options for life insurance may be limited and costlier. Here are some alternatives to traditional life insurance policies:

• Simplified Issue or Guaranteed Issue Life Insurance: These policies are also known as no-exam life insurance. They don't require a detailed medical history or medical exams and won't deny coverage due to pre-existing conditions like cancer. Simplified issue policies are for those in good or fair health, while guaranteed issue policies are geared towards older individuals or those with health problems. The trade-off is higher premiums and a potentially lower death benefit.
• Group Life Insurance: Some employers offer optional life insurance as an employee benefit, which is typically guaranteed coverage and cheaper than individual policies. However, this type of insurance only exists while you are employed.
• Life Insurance Riders: If you already have a life insurance policy, you may be able to add riders for additional benefits. For example, an accelerated death benefit rider allows those with terminal illnesses to receive a portion of their death benefit while still alive.

Life Insurance While in Remission

If you were only eligible for guaranteed issue life insurance during your cancer treatment, you may be able to switch to a traditional policy once you enter remission. Traditional life insurance comes in two types: term and whole life insurance. Term life insurance is less expensive and bought for a set period, while whole life insurance lasts until death and usually has higher premiums.

The waiting period for coverage after cancer treatment varies by insurer and cancer type. Some insurers require a minimum of two years, while others may go up to ten. Cancer survivors may qualify for one or both types of policies after a certain period of remission, but expect higher premiums.

In conclusion, while a cancer diagnosis can complicate your life insurance options, there are alternative policies available during treatment, and you may be able to switch to traditional policies after achieving remission. It's important to carefully review your options and choose the coverage that best suits your needs.

Factors determining eligibility

When it comes to life insurance eligibility, cancer patients and survivors have several factors to consider. Here are the key factors that determine eligibility:

• Timing of Diagnosis and Treatment: Life insurance companies view cancer as a serious health issue that affects life expectancy. As a result, they are less likely to approve policies for individuals with active cancer or a recent diagnosis. The best time to obtain life insurance is when you are young and healthy, before any cancer diagnosis. If you already have a policy and are subsequently diagnosed, your coverage will typically remain in place.
• Remission Status: Life insurance companies often require cancer patients to be in remission for several years before offering traditional policies. The length of the waiting period can vary, with some companies requiring as little as two years and others mandating a longer wait, such as five or ten years.
• Type and Stage of Cancer: The type and stage of cancer play a significant role in eligibility. Cancers with higher survival rates and lower recurrence rates are viewed more favourably by insurers. Early-stage cancers and very treatable cancers may result in lower rates or easier approval.
• Treatment History: Insurance companies will want to know about the treatments you have received, such as chemotherapy, radiation, or surgery. They will also inquire about the last time you received treatment and how your health has been impacted.
• Family History: Life insurance companies consider your family's cancer history as it can indicate an increased risk for you. If your family has a strong history of cancer, especially hereditary cancers like breast, pancreatic, or prostate cancer, it may impact your eligibility.
• Lifestyle Habits: Lifestyle factors, such as alcohol or tobacco use, are taken into account as they can increase the risk of other health complications.
• Other Health Issues: Pre-existing health conditions like diabetes or high blood pressure will also be considered when determining eligibility and premium rates.
• Policy Type: Traditional life insurance policies are typically not available to individuals currently undergoing cancer treatment or facing a terminal diagnosis. However, alternative options like simplified issue or guaranteed issue life insurance (also known as no-exam life insurance) are designed for those with health issues and do not deny coverage due to pre-existing conditions. These policies often come with higher premiums and lower death benefits.
• Group Life Insurance: Some employers offer optional life insurance as an employee benefit, which is typically guaranteed coverage and easier to qualify for compared to individual policies.
• Riders: If you already have a life insurance policy, you may be able to add riders for additional benefits. For example, an accelerated death benefit rider allows those with terminal illnesses to receive a portion of their death benefit while still alive.
• Cancer Insurance: This is a niche product that provides cash benefits for medical bills and other expenses related to cancer. However, it is usually only available before a cancer diagnosis or after many years of remission.
• Policy Renewal: If you had life insurance before your cancer diagnosis and your policy has expired, speak with your insurance company about renewal options. They may be able to offer you a new policy, but the premiums are likely to be much higher.

Cancer survivors' life insurance options

If you have been diagnosed with cancer, it is still possible to qualify for some types of life insurance. Your options will depend on several factors, including whether you are still undergoing treatment or are in remission, the length of remission, the type of cancer, and other factors. Here are some life insurance options for cancer survivors:

Traditional Life Insurance

Traditional life insurance policies typically provide coverage for a set period, such as term life insurance, or for a lifetime, such as whole life insurance. If you already have a traditional life insurance policy before your cancer diagnosis, your coverage will likely remain in place, and your loved ones will receive the death benefit if you pass away. However, obtaining a new traditional life insurance policy after a cancer diagnosis can be challenging. Most life insurance companies deny coverage for new policies to cancer patients undergoing treatment. After a few years in remission, you may become eligible for a traditional policy again, depending on the insurer's requirements.

Simplified Issue or Guaranteed Issue Life Insurance

If you are ineligible for traditional life insurance due to your cancer diagnosis, you can consider simplified issue or guaranteed issue life insurance, also known as no-exam life insurance. These policies do not require a detailed medical history or medical exams and will not deny coverage because of pre-existing conditions like cancer. Simplified issue life insurance is for individuals with good or fair health, while guaranteed issue life insurance is geared towards older individuals or those with health problems. The trade-off for easy approval is higher premiums and a potentially lower death benefit due to the increased risk.

Group Life Insurance

Some employers offer optional life insurance as an employee benefit, which can be obtained at no cost or a reduced cost. Life insurance obtained through your employer is typically guaranteed coverage and is generally cheaper and easier to qualify for than individual policies. If you are covered by a group life insurance policy and develop cancer, you will not be penalized or lose your policy due to your diagnosis. However, it's important to remember that group insurance only exists while you are employed, and there may be coverage limits tied to your salary.

Life Insurance Riders

If you already have a life insurance policy, you may be able to add or activate riders for additional benefits. Two specific types of riders, the accelerated death benefit rider and the chronic or critical illness rider, allow cancer patients to access a portion of their death benefit while still alive to help with expenses. Contact your life insurance company to inquire about any available riders that can be added to your existing policy.

Cancer Insurance

Some insurance companies offer a niche product called cancer insurance, which provides cash benefits to cover medical bills and other expenses related to cancer treatment. However, these policies usually must be purchased before getting cancer or after a long period of remission. There is a possibility that you will spend money on premiums and never need to use the policy, but it can be beneficial if you have a strong family history of cancer or fear a future recurrence.

Tips for Cancer Survivors:

• Shop around and obtain multiple quotes from different insurers, as restrictions and costs for cancer survivors can vary significantly.
• The best way to ensure coverage is to have a term or whole life insurance policy in place before you get sick. That way, if you are diagnosed with cancer, you will have the peace of mind that your existing policy will be there to help your loved ones financially.
• Be honest and disclose all relevant information when applying for life insurance. Failure to disclose pre-existing conditions or previous medical history may result in claim rejection or denial of coverage.

Cancer as a natural cause of death

Cancer is a leading cause of death, with 600,000 people in the US dying from the disease each year. It is therefore understandable that many people opt for life insurance to ensure financial security for their loved ones.

Most of the time, cancer-related deaths are covered by life insurance policies. Natural cause deaths are covered by common insurance policies like term or whole life coverage. Unless there is a major misrepresentation on a new policy application, cancer is regarded as a natural cause, and so policy beneficiaries will likely get the life insurance benefit.

However, there are some situations where a life insurance company can decline to pay up the proceeds for such deaths, even though they cater to people who have been diagnosed with cancer or who have survived cancer. For example, applicants must be truthful on their life insurance policy application while purchasing life insurance. The insurer has the right to look into the cause of death to ensure no fraud was perpetrated if the insured passes away within the first two years of the policy's effective date, a time known as the life insurance contestability period. The claim may also be rejected, for instance, if the applicant smokes and later passes away from lung cancer or if their family's medical history contains cancer diagnoses (particularly hereditary cancers like breast, pancreatic, or prostate cancer).

If you already have traditional life insurance, you shouldn't lose coverage with a cancer diagnosis. Exceptions are if you failed to pay your premiums or if you were untruthful when applying, since providing false information is considered fraud and can result in no payout of death benefits.

If you are currently living with cancer, your options for life insurance are more limited and costlier. You can opt for simplified or guaranteed issue life insurance, which won't deny you because of pre-existing conditions but will have higher premiums and a lower death benefit. Group life insurance through your employer is another option, as is adding a life insurance rider to your existing policy.

Cancer coverage exceptions

While it is challenging to qualify for a new traditional life insurance policy after a cancer diagnosis, it is not impossible. Here are some exceptions and options available for individuals seeking life insurance coverage with a history of cancer:

Guaranteed Issue Life Insurance

If you are unable to qualify for traditional life insurance due to your cancer history, you may consider guaranteed issue life insurance. This type of policy does not require a medical exam and accepts applicants regardless of their health status. However, these policies tend to be more expensive and may have lower death benefits compared to traditional policies.

Simplified Issue and No Medical Exam Life Insurance

Simplified issue and no medical exam life insurance policies are similar to guaranteed issue policies in that they do not require a medical exam. These policies may be an option for cancer patients, especially those with terminal cancer. While the rates will be higher and the death benefit lower than traditional policies, they can provide coverage for individuals who may not qualify otherwise.

Group Life Insurance

Group life insurance is often offered through employers and can be beneficial for cancer patients. It may be provided in the form of guaranteed issue, meaning you won't be penalized for your cancer diagnosis. Additionally, group life insurance can sometimes be converted to an individual policy if you leave your job, providing continued coverage.

Final Expense Benefits

Final expense benefits are available with some life insurance plans and can help cover costs associated with the policyholder's burial, funeral, uninsured medical expenses, and probate. This can be especially useful for cancer patients and their families, providing financial support during a difficult time.

Living Benefits

Some life insurance plans offer living benefits, which grant policyholders access to the death benefit while they are still alive. This can be incredibly valuable for cancer patients, helping to cover medical expenses, treatment costs, and other financial needs during their illness.

Cancer Insurance

In addition to life insurance, dedicated cancer insurance policies can provide financial support for cancer patients. These policies pay policyholders lump-sum cash benefits that can be used for various expenses, including hospital bills, prescriptions, and mortgage payments. Cancer insurance can help alleviate the financial burden associated with cancer treatment and provide peace of mind.

It is important to carefully review the terms, conditions, and exclusions of any life insurance policy before purchasing. Shopping around and comparing quotes from multiple companies can help you find the best coverage for your specific needs and health issues. Additionally, being honest about your health history and current status is crucial to ensure that your coverage is not denied or cancelled due to non-disclosure.

Frequently asked questions