If you or someone you love has been diagnosed with cancer, the number of things that you need to consider can be overwhelming. Along with treatment and prognosis questions, you may have questions about how cancer affects your ability to get or keep life insurance.
Can you get life insurance if you have cancer?
We understand that this can be a sensitive and confusing topic, so we aim to provide clear and comprehensive answers to common questions about life insurance and cancer. We’ll dive into the ins and outs of life insurance for cancer patients, including the best life insurance options and what you need to know to make an informed decision.
What are the stages of cancer and how do stages affect life insurance options?
Cancer is categorized into four stages. Stage 1 is the earliest detection and most treatable. Meanwhile, Stage 4 is the most advanced and potentially terminal. After receiving treatment and seeing a reduction in symptoms, the patient enters into a state of “remission.” Once someone has remained in remission for five or more years, they are generally considered to be cured.
Your life insurance options will vary based on your cancer stage and prognosis.
Does life insurance cover cancer?
Generally speaking, most life insurance companies will pay death benefits to the beneficiaries of policyholders who passed away from cancer. Cancer is considered a natural cause of death, so it applies to any term or permanent life insurance contract.
However, it’s important to note that for a claim to be valid:
- You’ll need to have had the life insurance policy before you were diagnosed with cancer
- If you applied after your cancer diagnosis, you disclosed this fact to the life insurance company on the application
Note that for the latter, failure to inform or mislead a life insurance company will void the contract. For this reason, most policies have a two-year contestability period.
How much life insurance can you get with a cancer diagnosis?
Even if you’ve developed cancer, getting coverage from a life insurance company is still possible. Although each situation is different, providers will consider each applicant’s health history and other factors individually, so it’s best to always talk with an agent and explore your options.
Usually, applicants with early-stage cancer or who’ve been in remission for five or more years will have the most options available. Some may even be able to apply for a standard term or whole policy (although the premiums may cost more). In this situation, coverage may be in the hundreds of thousands or even over $1 million.
On the other hand, applicants that are currently undergoing cancer treatment, have recently entered remission, or are currently battling with late-stage cancer will have more limited options or be denied altogether. If they can get coverage, it may only be for as much as $25,000 to $50,000.
Does the type of cancer affect the cost of life insurance?
Yes. Life insurance providers consider the type of cancer and what stage of cancer you are in. The more severe it is, the more your health condition could inhibit your ability to get adequate coverage.
For instance:
- If your cancer is more localized (such as melanoma or cervical cancer), this is considered lower risk.
- If you have cancer that has spread to different body parts (such as leukemia, pancreatic cancer, or colon cancer), this is considered high risk.
In the latter case, when an applicant has a more aggressive type of cancer, this can cause their premiums to increase substantially. In the worst case, an applicant could be denied coverage entirely.
Best Life Insurance for Cancer Patients
If you’re currently receiving treatment for cancer or have a more advanced condition, then it’s unlikely that you’ll qualify for a new traditional term or permanent life insurance policy. As an alternative, you should consider the following other options:
- Purchase a guaranteed issue life insurance policy. Guaranteed issue is a whole life policy that doesn’t require a medical exam or health screening. You’ll automatically receive coverage if you can pay the premiums on time. However, you should expect the premiums to be higher and the death benefits to be lower than any other type of life insurance.
- Get group life insurance. If you have life insurance through your employer, you can purchase additional coverage without providing any medical details. This can be another easy way to get insurance. It’s important to remember that if you separate from your employer, you’ll lose your coverage (unless it’s portable).
- Convert a current term policy. If you already have a term life insurance policy and don’t want to let it expire, you may be able to convert it into a permanent policy without having to go through underwriting (re: medical exams).
- Get a rider on an existing policy. If you have a spouse with a pre-existing life insurance policy, they may be able to purchase a rider that covers you. Riders are generally easy to get and relatively inexpensive. However, the cap on the death benefit is extremely limited.
Guaranteed Issue Whole Life Insurance for High-Risk Cancers
Among the options above, a guaranteed issue whole life policy is the best choice of life insurance for Stage 4 cancer patients. Not only is this the least challenging coverage to obtain since it doesn’t have any medical requirements, but also a guaranteed issue policy won’t expire.
Guaranteed issue premiums cost more than a traditional policy, but you can receive up to $50,000 in coverage that won’t change regardless of your health status.
Life Insurance Options for Cancer Patients In Remission or Cured
If you’ve already overcome your cancer, first of all: congratulations!
In terms of life insurance, you should have plenty of options. For instance, you could start by seeing if you qualify for a traditional term life or whole life policy.
It’s Never Too Late
Learning you have cancer is devastating news, but it doesn’t have to stop you from getting the coverage you and your family deserve. Depending on the progression and type of cancer you have, you may still be able to get a traditional term or whole life policy.
However, if your situation is more advanced, you may have more success with alternate products, such as a guaranteed issue whole-life policy. If you’re interested in finding out more about life insurance for cancer patients, contact a Principled Life advisor today for more information and policy options.
