Can You Buy Life Insurance If You Have Cancer?

Life insurance provides financial security for loved ones, offering a payout upon the policyholder’s passing. For individuals with a cancer diagnosis, obtaining new life insurance can seem challenging, yet it is often achievable. While a cancer history introduces complexities to the application process, various options and considerations exist to help secure coverage.

Underwriting Considerations for Applicants with Cancer

Life insurance companies carefully evaluate several factors when assessing an applicant with a cancer history to determine eligibility and premium rates. The specific type of cancer plays a significant role, with insurers differentiating between highly aggressive forms and slower-growing cancers. For instance, non-melanoma skin cancers may have minimal impact on insurability compared to more severe or metastatic cancers, which are generally viewed as higher risk.

The cancer’s stage and grade at diagnosis are also crucial, indicating the severity and spread of the disease. Early-stage or localized cancers may result in more favorable assessments than advanced or widespread metastatic cancers, which present a higher probability of complications.

Insurers also consider the complete treatment history, including surgeries, chemotherapy, and radiation, and the outcomes of these interventions. The time elapsed since treatment completion and evidence of no recurrence, known as the remission period, is particularly important, with longer remission periods generally leading to more favorable underwriting decisions (often one to ten years, depending on cancer type and severity).

An applicant’s overall health and any co-existing medical conditions, such as diabetes or heart disease, also influence the risk assessment. These comorbidities, when combined with a cancer history, can increase the perceived risk, potentially affecting eligibility or leading to higher premiums.

The age at which cancer was diagnosed can also affect underwriting, as it may influence future health projections.

When an applicant presents a higher risk due to these factors, they might be classified as “substandard risk,” meaning they may still receive coverage but at higher premium rates to compensate for the increased likelihood of a claim.

Life Insurance Options for Individuals with Cancer

Several types of life insurance policies may be available to individuals with a cancer diagnosis or history, each with distinct characteristics.

Traditional term and permanent life insurance policies, such as whole life, are typically more difficult to obtain for those with active cancer or very recent remission. These policies are generally designed for individuals in good health and may only become viable options for long-term cancer survivors who have been in remission for several years.

Simplified issue life insurance offers a more accessible pathway, as it involves fewer medical questions and typically does not require a medical exam. While some underwriting still occurs based on health questionnaires and database checks, it can be suitable for individuals with certain cancer histories who may not qualify for fully underwritten policies. These policies often provide quicker approval times, sometimes within days, but may come with higher premiums compared to traditional options.

Guaranteed issue life insurance is generally the most accessible option, requiring no medical questions or exams and ensuring acceptance for almost anyone within a specified age range. This accessibility comes with limitations, including lower coverage amounts (often $10,000 to $50,000) and significantly higher premiums. Most guaranteed issue policies also include a waiting period (typically one to three years) during which the full death benefit is not paid for natural causes; beneficiaries usually receive a refund of premiums paid, plus interest.

Group life insurance, frequently offered through employers or associations, often does not require individual medical underwriting. This makes it a valuable option for individuals with a cancer diagnosis, as coverage may be provided as part of an employee benefits package without extensive health assessments. However, group policies typically provide more limited coverage amounts compared to individual policies.

Preparing for the Life Insurance Application

Applicants with a cancer history should meticulously prepare their medical information before submitting a life insurance application. Key documents to gather include:

• Comprehensive medical history, including precise dates of diagnosis, cancer type, stage, and grade.
• Full details of all treatments received, such as dates, dosages, and duration of surgery, chemotherapy, radiation, or immunotherapy.
• Copies of pathology reports and biopsy results.
• Current health status reports and records of ongoing monitoring or remission from physicians (e.g., attending physician statements).
• A complete list of all current and past medications related to cancer treatment or other health conditions.

Throughout this process, maintaining personal information accuracy and providing honest, complete disclosure is essential. Any misrepresentations, whether intentional or accidental, can jeopardize the application or lead to denial of benefits in the future.

The Underwriting and Decision Process

After submitting a life insurance application, the insurance company begins its underwriting process to evaluate the risk associated with insuring the applicant. The insurer will typically gather additional medical information, often requesting records directly from doctors and hospitals. This usually involves the applicant signing an Authorization to Release Medical Information, allowing the insurer to access medical records, prescription history, and data from industry databases like the Medical Information Bureau.

The underwriter, a specialist trained in risk assessment, then thoroughly reviews all gathered information, applying the company’s specific guidelines to determine insurability and premium rates. This assessment considers the factors discussed previously, such as cancer type, stage, treatment, and remission period.

Based on this comprehensive review, several outcomes are possible:

• Approval, resulting in a policy issued with a defined premium.
• A “substandard” or “rated” policy, approved at higher premiums due to increased risk (e.g., table rating or flat extra).
• Inclusion of specific exclusions or riders, such as an accelerated death benefit rider.
• Postponement, deferring a decision until a certain period of remission or treatment completion.
• Denial, if the perceived risk is too high or falls outside acceptable guidelines.

The insurer will communicate its decision to the applicant, outlining the terms of any offer or the reasons for postponement or denial.