Life Insurance with Cancer

When you are diagnosed with cancer, everything else becomes secondary to your health. But once you are on the road to recovery, you may want to consider life insurance. Many cancer survivors assume that they will not be able to obtain life insurance, but that is not always the case. Let’s explore what options cancer survivors have when shopping for life insurance.

Life Insurance Companies and Cancer Survivors

Life insurance companies specialize in risk assessment. When you apply for life insurance, the company assesses your risk of dying during the policy term. Cancer survivors present an increased risk of mortality, but not all cancers are created equal. Even among survivors, cancer types, stages, and treatments can vary widely. Therefore, life insurance companies take a personalized approach when evaluating applications from cancer survivors.

Depending on your health history and cancer treatment, you may be able to obtain a traditional life insurance policy at standard rates. Alternatively, you may be offered a policy with higher premiums or exclusions. In some cases, you may need to seek coverage from a specialized insurer that caters to high-risk applicants.

Factors That Affect Life Insurance Eligibility for Cancer Survivors

The following factors will affect your eligibility and rates when applying for life insurance:

Factor
How it Affects Your Eligibility
Cancer Type
Some cancers are more aggressive and have higher mortality rates than others. Life insurance companies will consider the type, stage, and grade of your cancer.
Treatment
The type and duration of your cancer treatment will impact your premiums. For example, if you had surgery and are now cancer-free, you may pay lower premiums than someone who completed chemotherapy recently.
Time Since Diagnosis
Life insurance companies want to see that you are in remission or have completed treatment and are stable. The longer the time since your cancer diagnosis, the lower your risk of recurrence and hence the lower your premiums will be.
Age
Your age at the time of diagnosis and at the time of application will impact your premiums. Older applicants will pay higher premiums than younger ones.
Overall Health
Your overall health, including any pre-existing conditions and lifestyle habits, will impact your eligibility and premiums.

Types of Life Insurance Policies Available to Cancer Survivors

When shopping for life insurance, you will encounter several types of policies. Each type has its pros and cons, so it’s essential to understand the differences before making a decision.

Term Life Insurance

Term life insurance provides coverage for a specified term, such as 10 or 20 years. If you pass away during the term, the policy pays out a death benefit to your beneficiaries. Term life insurance is the most affordable option for most people, but it expires at the end of the term, and you may not be able to renew it if you have developed any health issues.

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life, as long as you pay the premiums. It also builds cash value over time, which you can borrow or use to pay premiums. Permanent life insurance is more expensive than term life insurance, but it provides lifelong coverage, and you can use the cash value to supplement your retirement income.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a type of permanent life insurance that does not require any medical underwriting. You are guaranteed approval as long as you meet the age and residency requirements. However, the death benefit is typically lower, and premiums are higher than traditional insurance policies.

FAQ

Can I get life insurance if I have cancer?

Yes, you can get life insurance if you have cancer or are a cancer survivor. However, your premiums and coverage may be affected by your health history and the type of cancer you had.

Do I have to disclose my cancer diagnosis when applying for life insurance?

Yes, you must disclose your cancer diagnosis when applying for life insurance. Failing to do so could invalidate your policy and deny coverage to your beneficiaries.

How much does life insurance cost for cancer survivors?

The cost of life insurance for cancer survivors varies widely depending on your health history, type of cancer, and other factors. You may be able to find traditional coverage at standard rates, or you may need to pay higher premiums or accept exclusions. A specialist insurer may also be an option.

Can I get life insurance if I am currently undergoing cancer treatment?

It is unlikely that you will be able to obtain life insurance if you are currently undergoing cancer treatment. You will need to wait until you are in remission or have completed treatment and are stable.

What should I look for in a life insurance policy as a cancer survivor?

You should look for a policy that provides adequate coverage and meets your financial goals. The type of policy, premiums, death benefit, and cash value are all factors to consider. Working with a licensed insurance agent can help you find the best policy for your needs.

Conclusion

Life insurance is an essential financial planning tool for everyone, including cancer survivors. Although cancer survivors may face higher premiums and some limitations, they can still obtain coverage that provides peace of mind and financial protection to their loved ones. By understanding the factors that affect life insurance eligibility, the types of policies available, and working with an experienced insurance agent, cancer survivors can find the right policy for their needs.