Is there life insurance for cancer patients? Receiving a recent cancer diagnosis or undergoing treatment can often present challenges when seeking traditional life insurance.
According to Zachary Pugh, chief underwriter at Legal & General America, the type and stage of cancer can significantly impact your eligibility for standard-term or whole-life insurance policies.
The complexities of cancer and its progression may result in limitations on obtaining such coverage for an extended period of time.
Despite the obstacles that a cancer diagnosis may pose, it is important to note that securing life insurance is not always an insurmountable hurdle.
While traditional policies may be difficult to obtain under these circumstances, alternative options such as specialized cancer insurance or guaranteed-issue life insurance could provide viable solutions for individuals facing these challenges.
Understanding the nuances of insurance offerings tailored to cancer patients can help navigate the complexities of securing adequate coverage during such critical times.
Can You Get Life Insurance If You Have Cancer?
Obtaining life insurance while dealing with a current cancer diagnosis can be possible, but it may come with certain limitations and higher costs.
The specific type of cancer is a crucial factor in determining the feasibility of obtaining coverage.
Jeremy Hallett, founder of Quotacy, a national online life insurance agency based in Minneapolis, explains that certain types of cancer, such as non-melanoma skin cancers, may not significantly impact the cost of life insurance.
On the other hand, a pancreatic cancer diagnosis could make it challenging to secure coverage due to the severity of the condition.
Moreover, a malignant cancer diagnosis can often hinder the possibility of obtaining a policy altogether.
Travis Price, an independent senior market insurance agent in Manton, Michigan, concurs that most insurers do not impose restrictions on basal cell carcinoma, a type of skin cancer.
However, he notes that if an individual has a history of small cell lung cancer, it is highly probable that insurers would decline to offer coverage due to the aggressive nature of the disease.
How Long Does It Take A Cancer Patient To Qualify Before Getting Life Insurance?
The time it takes to become eligible for life insurance after a cancer diagnosis can vary depending on the insurance company and the type of cancer.
According to Friedlander of Triple-I, a typical waiting period for newly issued term life insurance, whole life insurance, or other types of coverage is at least five years of cancer remission.
The length of the waiting period for life insurance after cancer can depend on the type, invasiveness, and likelihood of recurrence of the cancer.
For instance, Legal & General’s Pugh notes that their company can cover breast and prostate cancer survivors if they have been treatment-free for three years. Nevertheless, the expense may be notably greater.
Different insurers have varying underwriting standards for specific cancers, which can result in longer waiting periods.
Friedlander explains that some insurers may require a minimum 10-year remission period for certain cancers.
Here are some samples of waiting periods for various types of cancer from Trusted Choice, a network of independent insurance agents:
- Bladder cancer: 2 years.
- Bone cancer: 5 years.
- Breast cancer: 2 years.
- Cervical cancer: 1 year.
- Colon cancer: 2 years.
- Kidney cancer: 3 years.
- Leukemia: 10 years.
- Lung cancer: 3 years.
- Lymphoma: 2 years.
- Metastatic cancer: 5 years.
- Ovarian cancer: 3 years.
- Prostate: 1 year.
- Rectal cancer: 2 years.
- Skin melanoma: 1 year.
These waiting periods can vary from insurer to insurer, and it is essential to consult with a trusted insurance agent to understand the specific requirements for each company.
What Is The Best Life Insurance For Cancer Patient?
When it comes to choosing life insurance after cancer, there are several options available for those who have been in remission for at least five years, according to Friedlander of Triple-I.
Here are some options to consider:
Term Life Insurance
This type of insurance is generally the most affordable way to buy coverage, if you can qualify for it.
However, you may need to undergo a medical exam and answer questions about your previous cancer diagnosis and treatment.
With term life insurance, you can lock in rates for a specific period, such as 10 or 20 years.
Permanent Life Insurance
Permanent life insurance types, such as whole life insurance and universal life insurance, can provide coverage for as long as you live, assuming you pay the premiums.
Simplified Issue Life Insurance
This type of insurance does not require a medical exam, but you may need to fill out a short health questionnaire.
According to Friedlander, a simplified issue can be a good choice if you are cancer-free but not in perfect health.
Guaranteed Issue Life Insurance
With no medical exam, health questions, or medical history requirements, guaranteed-issue life insurance may seem appealing.
However, the cost for the amount of coverage you get is typically high, and the policy will have graded death benefits.
Burial Life Insurance
Specifically engineered for individuals over 50, it is intended to settle expenses related to end-of-life care, including funeral costs and any outstanding medical bills.
This type of insurance can be a good option for those who want to ensure their loved ones are not burdened with these costs after they pass away.
Is Life Insurance For Cancer Patients Worth It?
While certain companies may offer life insurance to individuals with a history of cancer, others might decline coverage.
Understanding that there are choices available for those who have faced cancer in the past or are currently dealing with a new diagnosis is crucial.
In addition to traditional life insurance, cancer insurance can play a significant role in offsetting the substantial costs associated with a patient’s cancer treatment and care.
Therefore, it is advisable to thoroughly investigate all available coverage options before making a decision.
Strategies To Increase Your Chances Of Getting Life Insurance For Cancer Patients
To enhance your chances of obtaining life insurance after a cancer diagnosis, consider the following strategies:
- Collaborate with an experienced independent life insurance agent who specializes in impaired risk underwriting. These professionals have relationships with multiple insurance companies and can help identify those more open to insuring cancer survivors.
- Improve your overall health by adopting a balanced diet and a regular exercise routine.
- Avoid using tobacco products, as life insurance quotes for smokers are typically higher.
- Choose a low-risk profession, as certain occupations, such as police officers, firefighters, pilots, and construction workers, may face higher premiums.
- Steer clear of high-risk hobbies, such as mountain climbing, skydiving, and scuba diving, as these activities can impact your insurance quotes and result in higher rates.
- Maintain a clean driving and criminal record, as DUIs, previous arrests, and other criminal convictions may affect your rate or even disqualify you from coverage.
By implementing these strategies, you can improve your chances of securing life insurance coverage after a cancer diagnosis.
Frequently Asked Questions
How Does Cancer Affect Life Insurance Cost?
Cancer can significantly impact the cost of life insurance, as it increases the financial risk for the insurer.
Life insurance companies use a classification system to determine rates for cancer patients and survivors, with policyholders designated as “standard” or “substandard” paying the highest rates.
The exact cost will depend on factors such as your age, type of cancer, and time since diagnosis.
What Are The Types Of Life Insurance For Cancer Patients?
Following a cancer diagnosis, you may be able to qualify for guaranteed issue, group life, and final expense life insurance coverage.
These types of policies provide coverage for final expenses and funeral costs, and you generally cannot be rejected for them.
However, the two most common types of life insurance, term and whole, may not be available to you after a cancer diagnosis.
Can I Get Life Insurance If I Have A Family History Of Cancer?
Yes, you can get life insurance if you have a family history of cancer. However, this medical history may be taken into account when determining your premiums.
If you have been recently diagnosed or treated for cancer, your ability to purchase traditional life insurance may be impacted.
What Is The Best Life Insurance For People With A Family History Of Cancer?
When buying life insurance, your family’s medical history is often a factor in quotes. If you have a family history of cancer, it’s essential to shop around and compare policies from different insurers.
Some insurers may offer better rates or coverage options for individuals with a family history of cancer.
