Wednesday, June 15, 2022

Can You Get Life Insurance If You Have Cancer

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Q: Whats The Best Type Of Life Insurance For People With Cancer

Can You Buy Life Insurance If You Have Cancer?

A: There are two main types of life insurance policiesterm and whole life. Term life insurance provides coverage for a fixed period of time such as 10, 20, or 30 years. If you dont die within this period, you dont receive any compensation. And if you decide to renew your policy, your rates will go up.

A whole life policy is exactly what it sounds like. It has the ability to cover you over your entire life, so that your beneficiaries will receive compensation whenever you pass away. It is usually much more expensive, and accumulates cash value over time, which you may borrow against.

Its probably better to get whole life insurance because if your cancer lasts for years and years, you want to make sure your loved ones are covered. Plus, you can possibly get a guaranteed insurability rideras mentioned above.

What Breast Cancer Stages Lead To Good Life Insurance Outcomes

If you are a breast cancer survivor who has been in remission with no other health issues, youll have an easy time securing affordable life insurance. This is especially true if its been a number of years since your treatments.

What about a very slow-moving diagnosis, like Stage 0 breast cancer? According to the National Breast Cancer Foundation, Stage 0 breast cancer is considered to be non-invasive and does not typically require any chemotherapy.

This brings us to our first customer example, Nancy. She is set up to receive some of the more affordable premiums for a breast cancer patient. She applied for term life insurance when she was 56 years old.

Term life insurance lasts for only a specified length of time, usually 10, 20, or 30 years. If you do not pass before your policy term is up, you can renew your policy. However, the cost might increase due to your increase in age.

Below, see some of her other demographics that life insurance underwriters use to determine her rates.

  • Diagnosed at age 50
  • Outcome: Approved at a Standard rating class
  • Premium: $700 annually

Nancy was approved at the Standard rating class for her term life insurance policy. Thats the same rating class any person in normal health will also fall into. It isnt the cheapest rate, but it is average.

While this might not be the perfect outcome, its definitely better than what could happen. Next, youll see how breast cancer stages affect eligibility for life insurance.

Will My Cancer Diagnosis Affect The Cost Of The Premium

In general a cancer diagnosis means you will have to pay higher premiums .

If you are offered a life insurance policy, the premiums at the beginning may be higher because the risk is higher for the insurance company during this period .

This is called loading. Each insurance company will assess the risk before deciding whether to offer you insurance and at what price. Your insurance adviser will be able to guide you about how this may affect you personally.

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Life Insurance For Cancer Survivors

After successful treatment, you are a cancer survivor. Being cancer-free is something to be tremendously proud of, and it can make it easier to secure a policy with high coverage limits.Even though you are cancer-free, you should take some time before you purchase coverage. The longer you are without cancer, the less risk you will be and the lower your premiums. However, the type of cancer you had may make you more of a risk for an insurance company. For example, skin cancer may be viewed less seriously as pancreatic cancer, breast cancer, lung cancer, prostate cancer, or colon cancer.Life insurance quotes are always a good idea. You can get a good understanding of how much your insurer would like you to pay before you commit. You can also shop around for policies with life insurance brokerages.

Can You Get Life Insurance When You Have Cancer

Can You Get Health Insurance If You Have Cancer

The answer will depend on the type, grade and stage of your cancer.

You can get life insurance with a pre-existing condition. Most insurance companies will require cancer to be in remission. They typically look back at least 10 years if you are looking for a traditional term life insurance policy, says John Holloway, a licensed life insurance agent and co-founder of

Before they underwrite a policy, most insurers will use guidelines from the National Cancer Institutes Surveillance, Epidemiology, and End Results database. The database includes anonymized information on millions of people who have undergone treatment for cancer and their outcomes. The report also features expected survival life tables that detail survival statistics for various groups who are in remission.

Insurers will use this information, as well as specifics about your particular case and prognosis to determine whether and what type of policy for which you qualify.

Key Takeaways

  • You can get life insurance if you have a pre-existing condition. Most insurers will require cancer to be in remission.
  • Instant approval typically is a feature of term life insurance. With instant approval, an insurer will use a computer algorithm to predict your life expectancy and risk.
  • Survivors of cancer, or people with cancer, may find it difficult to get quality life insurance.
  • It may be a good idea to add long-term care rider if youre concerned about paying for long-term care in a nursing home.

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Work With An Independent Life Insurance Agent Or Financial Advisor

Independent agents work with several insurance companies and will know which ones are more willing to insure cancer survivors. In particular, look for an independent agent who specializes in impaired risk underwriting.

These types of agents and firms have extensive knowledge and experience in underwriting cancer and many other health conditions, Pinney says. They can guide you through the shopping and underwriting process to ensure you get the best product and pricing based on your particular needs.

Summary: Should You Get Life Insurance While You Have Cancer

While this is a simple question, theres no simple answer. It boils down to your personal situation, as well as your age and the type of cancer.

Here are a few examples of getting life insurance as a cancer patient or cancer survivor:

Current cancer patient, or in the first years of remission:The only life insurance option available to you is guaranteed issue life insurance. This type of life insurance is quite expensive. It provides up to $40,000 in life insurance and typically has a graded death benefit of 2 years. During this time, your beneficiaries will not receive the full death benefit. Instead, they will receive any paid premiums + 10%, depending on the insurance provider.

If your life expectancy is less than 2 years:Chances are slim your beneficiaries would even receive your death benefit. If your life expectancy is 2-5 years, a guaranteed issue policy does make sense since the graded period will be over, and your beneficiaries will receive the full death benefit.

When you are past the remission time for your type of cancer:It may be best to wait until you are completely cancer-free to buy a term or whole life policy, as these policies offer better benefits at a much lower cost. Depending on your age, term life insurance is most popular for individuals under age 55. For those over 55, a final expense policy can provide up to $50,000 of coverage, without having to worry about a lapsing term.

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Is Guaranteed Issue Life Insurance Worth It

The answer to this question depends on your situation. If you have other life insurance policies and/or money saved elsewhere, guaranteed issue life insurance isnt worth it. But, if you have no other means to pay for your final expenses and/or leave money behind for your beneficiaries, then its your only option.

Term Life Insurance For Cancer Patients

Can I Get Life Insurance If I Had Cancer ?

Due to the nature of cancer as a disease, acquiring a suitable insurance plan that provides coverage for such cases can be a difficult task. Treatment for cancer patients can put severe strain on the financial resources of the individual as well as their families due to the high expenses involved during different stages of treatment.

While it is next to impossible to procure an insurance policy that covers an individual already diagnosed with cancer, it is possible to acquire a critical illness cover with a health or life insurance plan that provides coverage for those who are yet to be diagnosed with the disease and who wish to be protected in the eventuality of such an event taking place in future.

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How Much Does Life Insurance After Cancer Cost

Theres no getting around the fact that life insurance after cancer is more expensive.

If you can get cover, the insurer will increase your premium significantly compared to someone with no history of health issues.

Normally this increase will be temporary for a period of between one to ten years.

If youd like me to get you an indicative quote, please complete this questionnaire

Can I Get Life Insurance If I Currently Have Cancer Or Have Been Diagnosed With Cancer In The Past

While cancer can make it more challenging to get a life insurance policy, its not impossible. It may mean that your premiums increase. Or it could mean that you cant apply for certain policies. The level of cover you receive and the cost of your premiums will depend on the type of cancer you have . It also depends on the amount of time since your diagnosis or recovery.The best way to find out if an insurer offers cancer cover for your personal situation is to get a quote. Try to answer all medical and health-related questions accurately. Common questions can include: How long ago was your diagnosis? What were the results of any recent tests or scans? Where is the cancer and has it spread? Are you currently receiving treatment and, if not, when will you receive it?What medication are you taking?

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No Medical Life Insurance

Some insurance companies advertise this. It is true that they will not ask for a medical exam. But it may not mean that they wont ask for blood and urine tests. Also, they will expect the applicant to fill out an application form. On that form, they may ask several medically related questions. About the applicants health. The applicant must answer the questions honestly.

Best For Patients In Remission: Fidelity Life

Can You Get Life Insurance After Prostate Cancer ...

Fidelity LIfe

Why We Chose It: Fidelity Life provides potentially suitable term and whole life options, plus a guaranteed issue RAPIDecision Final Expense policy in case you dont qualify for other options.

  • May need to answer health questions

  • Premiums may be expensive

Illinois-based Fidelity Life offers a range of term, whole life, and accidental death life insurance products. In 2019, it had $35 billion of life insurance policies in force and $422 million in total assets.

For standard policies, youll need to complete a medical questionnaire, but there is no physical exam. Your health determines your approval and premium. For people aged 50 to 85, the RAPIDecision Final Expense coverage could provide almost immediate coverage with no waiting periods.

Contact Fidelity Life to inquire about coverage following a cancer diagnosis. The online quote system doesnt have the capability to include any specific health information, only the option to rate your health from poor to excellent.

The guaranteed issue policies have neither physical exam nor medical questions. Using the online portal, the RAPIDecision Life policy of $250,000 in coverage on a 20-year-term would be $23 a month for a 30-year-old female .

Fidelity Life includes a terminal illness rider at no charge, meaning that you could receive an early payout of some of the death benefits should you be diagnosed with terminal cancer.

The company has an AM Best rating of A- .

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Can You Get Life Insurance If You Have Cancer

According to a report from the Canadian Cancer Society , one in two Canadians will receive a cancer diagnosis in their lifetime. With the high rate of cancer diagnoses, more people are looking to buy life insurance while diagnosed with cancer. Insurance can help cover your medical expenses and pay your end-of-life expenses if need be.

If you have been recently diagnosed with cancer and are wondering how you can protect your family in the event of the unexpected, we can help. We will explain everything you need to know about receiving life insurance coverage while you have cancer.

More General Rules To Know

For those who have beaten cancer, its still going to take time until you can expect the most affordable rates.

Life insurance companies like to see a certain amount of time has passed, with regular follow up, to make sure the cancer has not reinstated itself in some way.

Here are some general waiting period guidelines you might expect :

Type of Cancer

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Best For Guaranteed Issue: Aarp


Why We Chose It: AARP is our best pick for the guaranteed issue because they wont decline coverage for pre-existing health conditions like cancer, and theres no medical exam or medical history questions.

  • Options for no medical exam

  • Online quotes

  • Must be over 50

  • Restricted to AARP members

AARP is a not-for-profit organization that aims to empower Americans over 50. Its life insurance policies are underwritten by the New York Life Insurance Company, which has an impressive A++ rating with AM Best, indicating superior financial stability.

Providing youre over 50 and become an AARP member, you can choose AARPs Guaranteed Acceptance Life Insurance. It features guaranteed acceptance providing you are not terminally ill, and theres no need for an invasive physical examination despite a cancer diagnosis.

Using the AARP website, you can get a basic quote. Sample costs for a 50-year-old female are $111 per month, and $158 for a male, for the maximum $25,000 of coverage. A drawback is that youll have to make payments for two years before your named beneficiaries are eligible to receive benefits should you pass away.

Your rates wont increase once AARP approves you, and there are no further premiums past age 95, thanks to the Paid-Up benefit which keeps your coverage in effect for the rest of your life with no additional payments.

Can I Get Life Insurance After Ive Had Cancer

Life Insurance Question of the Week: What if I have Cancer?

Depending on the nature and extent of the cancer its possible to get life insurance after surviving certain cancers, but there may be a period of time before you can get cover and you may face higher premiums when making a new application. You will need to tell your insurer about your medical history when you apply for cover, and your insurer will assess whether to offer you a life insurance policy not just on the basis of your cancer history, but your age, other medical information, and how much cover you wish to take out.

Please remember, life insurance is not a savings or investment product and has no cash value unless a valid claim is made.

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Final Expenses And Burial Insurance

If you cant get traditional life insurance, you may be able to get final expense insurance.

Final expense insurance, also known as burial insurance, can be either a term life or whole life policy. You can get a simplified issue policy, which entails answering a few medical questions as part of the underwriting process. Another option is a guaranteed issue policy, which doesnt involve any medical questions.

You also can get a policy with a graded death benefit. These policies increase the death benefit to your beneficiaries over the life of the policy as long as you dont die within the first few years.

Your beneficiaries can use this insurance to pay for funeral expenses, housing expenses or other costs. However, the trade-off with final expense insurance is that the policy amounts are fairly low compared to traditional life insurance.

Typically, a final expense policy may have a face value that ranges from $5,000 to $50,000.

How Can I Prepare For My Term Life Insurance Application With Breast Cancer

If you have breast cancer, there are important measures you can take to prepare yourself before applying for term life insurance. Doing so will help your chances of getting approved for the best rating class possible.

Use the following tips to put yourself in the best position to win:

  • Have all doctors names/addresses/phone numbers available.
  • Make sure your doctor has copies of all medical records regarding the cancer treatment, pathology reports, and follow-up reports.
  • Have a list of all medications and their dosages available.
  • Do not skip any follow-up visits with your doctor.

The breast cancer life insurance underwriting process is an important opportunity for prospective clients to get good coverage and get the cheapest term life insurance possible.Life insurance underwriting guidelines will help you understand your life insurance rates.

Remember, youll also need to be clear with your agent on your current health status because there are anticipated differences in life insurance for breast cancer survivors versus insurance for those with active breast cancer.

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What Are Your Life Insurance Options After A Cancer Diagnosis

  • Speak to your insurance provider and ask, can you get life insurance when you have cancer? Policies vary among companies, but it is common for those currently undergoing treatment, or who have been diagnosed within the last few years, to be ineligible for traditional term or whole life policies depending on the company, however, they may allow them to purchase a policy but at a much higher rate.
  • Consider a final expense policy, which is geared toward terminal patients who want to help provide for their families in their final days.
  • Explore guaranteed issue life insurance policies. A guaranteed issue life insurance policy is a type of whole life insurance that does come with a much higher price tag and less coveragebut can be a good option for patients whove been denied access to other types of policies. There is no medical exam involved and applicants dont have to provide a health history, with premium rates based on age this type of policy is most often reserved for those over 50, but if youre a cancer patient under that age, you may still be approved by some carriers.
  • While applying for insurance during or after cancer treatment can mean a few extra steps, when you explore all of your options and weigh the many considerations that need to be looked at, its possible to secure a plan that can help provide you financial security for the future and needed peace of mind.

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