Can a Person With Cancer Get Life Insurance?

Life insurance provides financial security for loved ones through a death benefit payout. Individuals with a cancer diagnosis or history often wonder if they can obtain coverage. It is generally possible to secure life insurance even with cancer, though availability and terms depend on specific factors. The process may be more complex than for someone without a pre-existing health condition.

Understanding Eligibility Factors

Life insurance companies assess several factors to determine eligibility and set premiums for individuals with a cancer history. The specific type of cancer plays a significant role. Less aggressive forms, like certain skin cancers, may be viewed differently than more aggressive types due to their prognosis.

The cancer’s stage and grade at diagnosis are also important. Insurers examine whether the cancer was localized or had spread, and its aggressiveness, as these details influence perceived risk. Treatment history, including type, duration, and completion dates, provides further insight. Insurers look for adherence to the treatment plan and regular follow-ups.

Remission status and time since last treatment are significant factors. Many insurers require a cancer survivor to be in remission for a specific period, often one to five years, before offering traditional coverage. For more advanced cancers (e.g., stage III or IV), insurers might prefer a remission period of up to 10 years. The longer an individual has been cancer-free, the more favorable their chances of securing coverage and potentially lower premiums.

Overall health and lifestyle factors also impact the assessment. Age, other existing health conditions like diabetes or high blood pressure, and lifestyle choices such as smoking or obesity, contribute to the insurer’s risk evaluation. These factors influence the policy’s cost.

Available Life Insurance Options

Several types of life insurance policies may be available to individuals with a cancer history. Traditional policies, such as term life and whole life insurance, can be obtained depending on eligibility. Those with a cancer history might face higher premiums or specific waiting periods. A traditional policy provides a death benefit that is generally tax-free to beneficiaries.

Simplified issue life insurance involves fewer health questions and usually no medical exam. This option suits individuals in good to fair health, especially if cancer-free for several years. Simplified issue policies typically come with lower coverage limits and higher costs compared to fully underwritten traditional policies.

Guaranteed issue life insurance offers acceptance without medical exams or health questions, making it accessible to individuals with significant health issues, including cancer. This option usually has very high premiums and low coverage amounts, often ranging from a few thousand dollars up to $50,000. A common feature is a graded death benefit, a waiting period (typically two to three years) before the full death benefit is paid. If the insured dies from non-accidental causes during this period, beneficiaries may only receive a refund of premiums paid, often with interest.

Group life insurance, often provided through employers, is another viable option. These policies may not require individual medical underwriting, making them a good choice for cancer survivors who have returned to work. Employers often offer a base amount of coverage, sometimes at no cost, with options for purchasing supplemental coverage. Group policies often result in more affordable premiums for employees than individual policies.

The Application and Underwriting Process

Applying for life insurance after a cancer diagnosis involves a structured process where insurers evaluate risk. The first step is seeking an agent or broker experienced with high-risk applicants. Once a policy type is identified, the applicant completes a detailed application form. This form requires comprehensive personal and medical history, including cancer diagnosis, treatment, and remission status.

For policies requiring full underwriting, a medical exam is part of the process. A paramedical professional conducts this exam, which involves:
Recording medical history
Asking about family medical history
Taking blood pressure
Listening to heart sounds
Measuring height and weight
Collecting blood and urine samples for general health indicators

After the application and medical exam, information enters the underwriting review phase. Underwriters assess overall risk based on collected data. They may access medical records, prescription history, and data from sources like the Medical Information Bureau (MIB) to verify information. This review helps determine the applicant’s risk profile and appropriate premium rates.

The underwriting process can take several weeks, depending on medical history complexity and need for additional records. Following review, the insurer provides a decision. Outcomes include approval (with standard or higher premium), a modified offer, or denial if perceived risk is too high.