Can You Get Term Life Insurance If You Have Cancer?

Securing term life insurance can be a significant concern for individuals who have a history of cancer. While a cancer diagnosis can introduce complexities to the process, obtaining coverage is often a realistic possibility. Understanding the factors that influence an insurer’s decision and the various policy options available can help in navigating this journey.

Underwriting Considerations for Cancer Survivors

Life insurance underwriters evaluate factors when assessing an applicant with a history of cancer. The specific characteristics of the cancer, such as its type, stage at diagnosis, and grade, are reviewed. Less aggressive cancers might be viewed differently than more advanced forms.

The details of the cancer treatment also play a role in the assessment process. Underwriters examine the type of treatment received, including surgery, chemotherapy, radiation, or immunotherapy, and evaluate the success of treatment. They also consider any lingering side effects from the treatment that might impact overall health.

A factor is the remission period, which refers to the length of time an applicant has been cancer-free. The longer the remission period, the more favorable the terms for obtaining coverage, as it indicates a lower likelihood of recurrence. Many insurers prefer a remission period of at least two to five years, though this can extend to 10 years or more for certain types of cancer or higher stages.

Beyond the cancer history, an applicant’s current health status, including any other pre-existing conditions, is considered. Conditions such as diabetes or high blood pressure, alongside lifestyle factors like smoking history, influence the risk assessment. Insurers combine this information to determine eligibility and appropriate premium rates.

Exploring Available Term Life Insurance Options

Individuals with a cancer history have several types of term life insurance policies they can access. Traditional fully underwritten term life insurance involves a comprehensive review of medical history and requires a medical exam. While possible for some cancer survivors, this option necessitates a substantial remission period and excellent overall health.

Simplified issue term life insurance presents an alternative, as it involves fewer medical questions and does not require a medical exam. This type of policy may be suitable for individuals with a less severe or more distant cancer history who may not qualify for traditional underwriting. However, it comes with higher premiums and lower coverage amounts compared to fully underwritten policies.

Guaranteed issue term life insurance is another option, requiring no medical questions or medical examination for approval. This type of policy is available for those with active cancer or a very recent history, or for individuals who have been declined for other policy types. Coverage amounts are lower, ranging from $5,000 to $25,000, and premiums are higher due to the guaranteed acceptance.

A common feature of guaranteed issue plans is a graded death benefit. This means that if death occurs within an initial period, the first two to three years of the policy, the full death benefit may not be paid out. Instead, beneficiaries receive a refund of the premiums paid, with interest.

Preparing Your Application

A preparation process can streamline the application for term life insurance with a cancer history. Compile medical records related to the cancer diagnosis and treatment. This includes diagnosis reports, pathology results, summaries of treatments (surgery, chemotherapy, or radiation), and follow-up notes from oncologists and other specialists.

Accurate dates are essential, including the date of diagnosis, the completion date of treatments, and the start date of remission. Having a list of all medications, their dosages, and the prescribing physicians provides underwriters with a clear picture of current health management. Gathering contact information for all relevant healthcare providers, including specialists, is recommended.

In addition to medical specifics, standard personal and financial information needed for any life insurance application should be available. This includes details about income, assets, and liabilities. Providing complete and honest information at every stage helps prevent issues or delays in the underwriting process.

Navigating the Application and Underwriting Process

Once information is gathered, the procedural steps for applying for term life insurance begin. It is beneficial to work with an insurance agent or broker who specializes in high-risk cases, as they can guide you through the options and requirements. The first step is submitting the completed application form, which contains the personal, financial, and preliminary medical information.

Following application submission, the insurer initiates the underwriting review. A part of this review is the request for Attending Physician Statements (APS) from the applicant’s doctors. An APS is a medical report from your healthcare providers that summarizes your health history, diagnoses, treatments, and prognosis.

Depending on the policy type and the insurer’s guidelines, a medical exam may be required. This involves a paramedical professional taking measurements, vital signs, and collecting blood and urine samples. The underwriter then assesses gathered information, including the application, APS, and any exam results, to determine the risk level.

Possible outcomes of the underwriting process include approval at a standard rate or approval with a “table rating.” A table rating signifies a higher premium due to increased risk, with each rating level adding a percentage to the standard rate. Other outcomes can include approval for a simplified or guaranteed issue policy, postponement of the application until certain conditions are met (e.g., longer remission), or denial. The timeline for this process can vary, taking several weeks to months depending on the complexity of the medical history and the responsiveness of healthcare providers.