Cancer Diagnosis: Life Insurance Impact And Your Options

A cancer diagnosis can be emotionally and financially draining, and life insurance can help ease the burden on your loved ones. If you have life insurance before your diagnosis, your policy will likely remain valid, and your loved ones will receive a death benefit. However, obtaining life insurance after a cancer diagnosis is more challenging and expensive. Your eligibility will depend on factors like your prognosis, treatment, and time since diagnosis or remission.

Getting life insurance after a cancer diagnosis

If you have been diagnosed with cancer, you may be concerned about getting life insurance. It is important to know that a cancer diagnosis does not mean you will be unable to get life insurance, but it may be more difficult and expensive. Here is what you need to know about getting life insurance after a cancer diagnosis.

Types of Life Insurance for Cancer Patients

There are several types of life insurance policies that you may be able to qualify for as a cancer patient:

• Guaranteed issue life insurance is typically available regardless of health status, meaning you may still get approved if you have cancer. These policies usually have no medical exam, lower coverage amounts, and higher premiums.
• Simplified issue life insurance does not require a medical exam, but includes a few health-related questions in the application. It offers quick approval and generally has a lower death benefit than traditional policies.
• Final expense insurance is a small permanent policy that can help cover end-of-life expenses such as funeral costs and medical bills. It usually does not require a medical exam and can provide a lower coverage amount.
• Group life insurance is offered by some employers as an employee benefit, either at no cost or a reduced cost. It is typically guaranteed coverage and is cheaper and easier to qualify for than individual policies.

Factors Affecting Your Eligibility and Premiums

When determining your eligibility and premiums for life insurance after a cancer diagnosis, insurance companies will consider various factors, including:

• Type and stage of cancer: The survival and recurrence rates of your cancer will impact your risk assessment. Cancers with higher survival rates and lower recurrence rates will make you less risky to insurers.
• Treatment received: The type of treatment you have received, such as chemotherapy, radiation, or surgery, will be considered.
• Time since last treatment: Insurers will want to know how long it has been since your last treatment and how your health has been impacted.
• Time since remission: Some insurers require a minimum wait period, typically of five years, before they will sell you a policy.
• Family history of cancer: A history of cancer in your family can indicate an increased risk for you.
• Lifestyle habits: Factors such as alcohol or tobacco use can increase your risk for other health complications.
• Other health issues: Any other health conditions you may have, such as diabetes or high blood pressure, will be taken into account.

Tips for Increasing Your Chances of Getting Life Insurance After Cancer

To improve your chances of getting 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 eating healthy and exercising.
• Avoid using tobacco, 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 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.

Remember that the best way to ensure coverage is to have a term or whole life insurance policy in place before you get sick. If you already have life insurance and are diagnosed with cancer, your policy should be honoured as long as you have been honest about your medical history.

Life insurance options for cancer patients

If you have been diagnosed with cancer, you may be wondering about your life insurance options. The good news is that there are still options available to you, although these may be limited and more expensive. Here is an overview of the life insurance options that may be available to you as a cancer patient.

Types of Life Insurance for Cancer Patients

Several types of life insurance policies may be available to cancer patients, although the specific options depend on various factors, including the type and stage of cancer, your treatment plan, and your prognosis. Here are some common types of life insurance for people with cancer:

• Guaranteed issue life insurance: This type of policy is typically available regardless of health status, meaning you may still get approved if you have cancer. Guaranteed issue life insurance usually has no medical exam requirement, lower coverage amounts, and higher premiums.
• Simplified issue life insurance: This type of policy doesn't require a medical exam, but includes a few health-related questions in the application. It offers quick approval and generally has lower death benefits than traditional policies.
• Final expense insurance: Final expense insurance is a small permanent policy that can help cover end-of-life expenses such as funeral costs and medical bills. It usually doesn't require a medical exam and provides a lower coverage amount.
• Group life insurance: Some employers offer optional life insurance as an employee benefit, which can be beneficial for cancer patients as it often comes in the form of guaranteed issue.

Factors Affecting Life Insurance Eligibility for Cancer Patients

When considering your life insurance options as a cancer patient, it's important to understand how cancer impacts your eligibility. Here are some factors that insurance companies may consider:

• Type and stage of cancer: The specific type and stage of cancer can affect your eligibility and the cost of coverage. Cancers with higher survival and lower recurrence rates may make you less risky to insurers.
• Treatment received: The type of treatment you receive, such as chemotherapy, radiation, or surgery, can also impact your eligibility and premiums.
• Time since treatment: Insurance companies often consider the time since your last treatment and how your health has been impacted. Some companies require a minimum wait period before selling you a policy.
• Family history: Your family's cancer history can indicate an increased risk, which insurers will take into account.
• Lifestyle habits: Factors such as alcohol or tobacco use can increase your risk for other health complications and may affect your eligibility.
• Other health issues: Pre-existing health conditions, such as diabetes or high blood pressure, can also impact your life insurance eligibility and premiums.

Tips for Obtaining Life Insurance as a Cancer Patient

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

Remember that the availability and cost of life insurance for cancer patients can vary significantly depending on your specific circumstances. It's important to carefully review the options available to you and seek advice from a financial advisor or insurance expert.

Cancer as a pre-existing condition

If you have cancer or have had it in the past, you may find it more difficult to get life insurance. This is because insurers consider cancer patients to be high-risk, and therefore, their premiums are usually higher.

However, it is still possible to qualify for some types of life insurance after a cancer diagnosis. The options available to you will depend on various factors, including your prognosis, treatment, and time since diagnosis or remission.

If you are currently living with cancer, undergoing treatment, or facing a terminal diagnosis, you are unlikely to qualify for traditional life insurance policies. But there are alternative options available, such as:

• Simplified Issue or Guaranteed Issue Life Insurance: This type of insurance is for individuals who are ineligible for traditional life insurance due to pre-existing conditions like cancer. It does not require a detailed medical history or medical exams, and you only need to answer a few medical questions. The trade-off is that the premiums are higher, and the death benefit may be lower.
• Group Life Insurance: Some employers offer optional life insurance as an employee benefit, which is typically guaranteed coverage. This type of insurance is cheaper and easier to qualify for compared to traditional life insurance. However, it is only valid while you are employed, and there may be coverage limits tied to your salary.
• Cancer Insurance: There are specific cancer insurance policies designed to provide medical coverage and meet the unique needs of cancer patients. These policies usually cover expenses related to cancer treatment, hospitalisation, and medical tests. They may also include income replacement or disability coverage and access to counselling services.

If you already have traditional life insurance and are then diagnosed with cancer, your coverage will typically continue as long as you pay your premiums and have been honest about your medical history when applying. However, you may find it difficult to increase the value of your policy.

It is important to carefully review the terms and conditions of any life insurance policy you are considering and to seek advice from a financial advisor or insurance broker to ensure you get the right coverage for your situation.

Life insurance premiums for cancer patients

If you have been diagnosed with cancer, you may be wondering about your life insurance options. The good news is that many life insurance companies do provide coverage for cancer patients and survivors. However, the type of cancer and the stage of cancer are important factors that will determine your eligibility and the premiums you will have to pay. Here is what you need to know about life insurance premiums if you are a cancer patient:

Types of Life Insurance for Cancer Patients

There are several types of life insurance policies that cancer patients may be able to qualify for:

• Guaranteed issue life insurance is typically available regardless of health status, but it tends to have higher premiums and lower coverage amounts.
• Simplified issue life insurance does not require a medical exam, but includes some health questions. It offers quick approval and lower death benefits.
• Final expense insurance is a small permanent policy that covers end-of-life expenses such as funeral costs and medical bills. It usually does not require a medical exam and has lower coverage amounts.
• Group life insurance is offered by some employers and can provide guaranteed coverage.
• Cancer insurance is a supplemental policy that covers treatment costs associated with cancer care, including chemotherapy, radiation therapy, and surgery.

Factors Affecting Premiums

When determining your eligibility and premiums, life insurance companies will consider various factors related to your cancer diagnosis:

• Type and stage of cancer: Different types of cancer have different survival rates, and this will impact your risk assessment.
• Treatment received: The type of treatment you have received, such as chemotherapy or radiation, will be considered.
• Time since last treatment: The time that has passed since your last cancer treatment will affect your risk assessment.
• Time since remission: Some insurers require a minimum wait period of a few years before offering a policy.
• Family history: A family history of cancer may indicate an increased risk.
• Other health issues: Any other health conditions you have, such as diabetes or high blood pressure, will also be taken into account.

Tips for Obtaining Life Insurance

• 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 this can increase your premiums.
• Avoid high-risk professions and hobbies, as they can also impact your rates.
• Maintain a clean driving and criminal record.

Remember that the availability and cost of life insurance for cancer patients can vary significantly depending on the specific circumstances of your diagnosis and treatment. It is important to carefully review the options available to you and choose the policy that best suits your needs.

Life insurance riders for cancer patients

If you already have life insurance and are then diagnosed with cancer, your coverage should not be affected. Your policy will remain in effect as long as you continue to pay the premiums, and your loved ones will receive the death benefit. However, it is trickier when applying for life insurance after a cancer diagnosis. While cancer patients can still qualify for some types of life insurance, it may be more expensive and options are more limited.

If you already have life insurance, you might want to check if you have a rider that can help with cancer-related expenses. Here are some of the common riders that can be added to your policy:

• Critical illness rider: This rider can be valuable for individuals with cancer, as it provides financial support for medical costs and/or living expenses during a critical illness.
• Accelerated death benefit (ADB) rider: Also called a terminal illness rider, this rider allows you to receive a portion of the death benefit while you are still alive if you are 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 ADB rider, this allows 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.

Frequently asked questions