Is it possible to secure life insurance with a cancer diagnosis?
Life Insurance Options for Cancer Survivors and Patients
For individuals navigating a cancer diagnosis, undergoing treatment, or in remission, securing life insurance may seem daunting. However, there are several life insurance options tailored to their circumstances.
Term Life Insurance is often the best overall choice for cancer survivors due to its affordability and effectiveness. It offers coverage for a set period (up to 40 years), and some companies provide favorable rates especially for those who are otherwise healthy and have been in remission for a while[1][5].
Whole Life and Universal Life Insurance (Permanent Life Insurance) provide lifelong coverage with fixed (whole life) or flexible premiums and death benefits (universal life). These policies may suit those needing permanent coverage, though they tend to cost more than term policies[1][3].
Guaranteed Issue Life Insurance is available to individuals who are denied traditional policies because of their cancer history. These require no medical exam or health information but have higher premiums, lower coverage amounts, and usually a waiting period (often at least a year)[1][3].
Simplified Issue Life Insurance does not require a medical exam but includes health questions. It may be easier for individuals with hereditary cancer history or those in early remission to qualify. Rates are higher than term life but can still be affordable[1].
Group Life Insurance is sometimes offered through employers. Coverage is linked to employment and salary, and typically cannot be retained if employment ends. It might be easier to qualify for since underwriting tends to be less strict[3].
In addition to these, some insurers offer life insurance riders relevant to cancer patients, such as Accelerated Death Benefit or Terminal Illness Riders, Critical or Chronic Illness Riders, and Family Income or Child/Spouse Riders[3].
Factors affecting underwriting after a cancer diagnosis include cancer type, stage at diagnosis, time since treatment, treatment type (surgery only vs. chemotherapy/radiation), and other health conditions. Policies and acceptance vary accordingly, with some cancers like skin or prostate being viewed more favorably[5].
When applying for life insurance, it's crucial to disclose all necessary information to prevent an insurer from later denying a payout. People may want to speak with a financial advisor about finding the best life insurance option for them.
It's important to note that having a cancer diagnosis may make life insurance premiums more expensive. However, if people have existing life insurance before a cancer diagnosis, their policy should remain in place.
People in remission from cancer may have a wider range of life insurance options after a certain number of years. Having a family history of cancer may not affect a person's ability to get life insurance, but it may affect premium rates.
If people have more limited options and may need guaranteed life insurance, they may want to consider no medical exam life insurance, which may be more expensive than standard life insurance, but people will not need to undergo a medical exam to apply for it.
Lastly, some life insurance policies include terminal illness cover. People with cancer can get life insurance, although it may be more difficult. If people have access to an accelerated death benefit rider, they may be able to access part of their death benefits early under certain conditions.
[1] https://www.cancerresearchuk.org/about-cancer/financial-information/life-insurance [2] https://www.cancer.net/navigating-cancer-care/financial-considerations/life-insurance-and-cancer [3] https://www.forbes.com/advisor/term-life-insurance/life-insurance-for-cancer-patients/ [4] https://www.cancer.org/treatment/finding-and-paying-for-treatment/financial-assistance/life-insurance.html [5] https://www.cancerresearchuk.org/about-cancer/financial-information/life-insurance-and-cancer-survivors
- Oncology specialists may advise cancer survivors that Term Life Insurance is often the most feasible option due to its affordability and coverage period.
- Other than Term Life Insurance, Whole Life and Universal Life Insurance could also be considered for those requiring permanent life coverage, although they tend to cost more.
- Guaranteed Issue Life Insurance, which has no medical exam or health information requirements, is an option for those denied traditional policies due to their cancer history, but it comes with higher premiums and lower coverage amounts.
- Simplified Issue Life Insurance, which typically needs no medical exam yet includes health questions, might be an easier option for individuals with hereditary cancer history or early remission, despite the higher rates.
