How to Get Life Insurance When You Have Cancer

Obtaining life insurance after a cancer diagnosis, whether current or in the past, involves specific considerations. Insurance providers assess risk based on an individual’s health, and a cancer history adds complexity to this evaluation. Despite these hurdles, coverage is often possible, with various options available to protect loved ones financially.

Understanding the Impact of a Cancer Diagnosis

A cancer diagnosis significantly alters how life insurance companies evaluate an applicant’s risk. Insurers focus on mortality risk, the likelihood of an individual passing away during the policy term. A history of cancer generally increases this perceived risk due to potential recurrence or long-term health complications from the disease or its treatment.

Underwriters consider various aspects of a cancer diagnosis when assessing an application, including the specific type, stage, and prognosis.

Types of Life Insurance Options

Individuals with a cancer diagnosis may find certain life insurance policies more accessible than traditional options.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance policies are for individuals who may have difficulty qualifying for other coverage due to health reasons. These policies typically do not require a medical exam or extensive health questions for approval. While acceptance is guaranteed for applicants within a specified age range, often between 45 and 85, these policies come with higher premiums and lower death benefits, usually ranging from $2,000 to $25,000. A common feature is a waiting period, typically two to three years, during which the full death benefit is not paid if death occurs from natural causes. If death occurs during this period, beneficiaries usually receive a return of premiums paid, often with a small percentage of interest.

Simplified Issue Life Insurance

Simplified issue life insurance offers a quicker approval process compared to fully underwritten policies, as it generally does not require a medical exam. Instead, applicants answer a limited set of health questions. While more accessible than traditional policies for those with minor to moderate health issues, simplified issue policies typically have higher premiums and lower coverage limits than fully underwritten plans, with death benefits often capped around $50,000 to $100,000. Approval is not guaranteed and depends on the answers to the health questionnaire.

Group Life Insurance

Group life insurance is typically offered through employers or associations, often as a workplace benefit. Basic coverage usually does not require individual medical underwriting or a medical exam, making it accessible even with a cancer diagnosis. This coverage is often provided at low cost, or sometimes free, to the employee. The benefit amount is often a flat sum or a multiple of the employee’s salary, such as one or two times annual earnings. However, group life insurance policies may have limited coverage amounts and are generally not portable if you leave the employer.

Traditional Term or Whole Life Insurance

Traditional term and whole life insurance policies are generally more challenging to obtain with a cancer diagnosis, especially if treatment is ongoing. These policies involve extensive medical underwriting, including a medical exam and a thorough review of health records. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, with level premiums. Whole life insurance provides lifelong coverage and accumulates cash value over time, which can be borrowed against. While more difficult to secure, these policies may become an option for individuals in long-term remission, often after several years without recurrence.

The Application and Underwriting Process

Applying for life insurance with a cancer diagnosis involves specific preparatory and procedural steps.

Preparatory Actions (Information Gathering)

Before submitting an application, compile a detailed medical history related to your cancer. This includes the specific dates of diagnosis and a complete record of all treatments received, such as chemotherapy, radiation, surgery, or immunotherapy, along with their dates and durations. Information on any follow-up care, including regular check-ups, scans, and blood tests, and their results, is also necessary. Providing contact information for all treating physicians, including your oncologist, will allow the insurer to obtain official medical records, known as Attending Physician Statements (APS).

Your current health status, including any ongoing symptoms or side effects from treatment, must be accurately reported. Be completely honest and transparent throughout this process, as any misrepresentation could lead to denial of benefits.

Procedural Actions (Submission Steps)

Once all necessary information and forms are completed, the application can be submitted online, via mail, or through a licensed insurance agent. For policies requiring full underwriting, a medical examination or lab tests may be scheduled. This might involve a paramedical professional visiting your home or office to record your height, weight, vital signs, and collect blood or urine samples. The collected information, including medical records and lab results, then undergoes a comprehensive underwriting review.

During this review, underwriters assess the risk based on the provided health data. This process evaluates your life expectancy and assigns a risk classification, which directly influences premium rates and coverage availability. After the review, the insurer will communicate a decision, which could be an approval at a specific rate, a denial, or a counter-offer with adjusted terms or premiums. Processing timelines vary, ranging from a few days for simplified applications to several weeks or months for fully underwritten policies.

Key Factors Influencing Eligibility and Premiums

Insurance underwriters evaluate several specific criteria when considering an application from someone with a cancer history. These factors directly influence whether coverage is offered and at what cost.

The type of cancer is a primary determinant; some cancers, like certain early-stage skin or prostate cancers, may be viewed with less concern than highly aggressive or rare forms. The stage and grade of the cancer at diagnosis are also important, as they indicate the progression and aggressiveness of the disease. A lower stage and grade typically suggest a better prognosis and may lead to more favorable underwriting outcomes.

Treatment history, including the specific therapies undergone, their duration, and the success of these treatments, is thoroughly reviewed. The time elapsed since the last treatment and evidence of sustained remission are significant factors. Generally, a longer period of remission, often ranging from one to ten years depending on the cancer type, improves the chances of obtaining coverage and more competitive premiums. For example, a two-year remission period might be sufficient for early-stage breast cancer, while a longer period, such as five to ten years, could be required for more aggressive cancers like leukemia.

Beyond the cancer itself, an applicant’s overall health and lifestyle play a role. Existing health conditions, such as diabetes or heart disease, age, and lifestyle habits like smoking or obesity, can interact with a cancer diagnosis to further affect insurability and premium rates. Family history of certain diseases, including cancer, may also be considered, particularly if there is a pattern of early-onset diagnoses.

Considering Existing Coverage and Other Options

If obtaining new life insurance proves challenging, several alternative strategies and existing policy features may provide financial protection.

Reviewing existing life insurance policies is a good starting point. Some term life insurance policies include a convertibility feature, allowing them to be converted into permanent coverage, such as whole life or universal life, without additional medical underwriting. Additionally, check for riders like accelerated death benefits or waiver of premium riders. An accelerated death benefit rider allows policyholders to access a portion of their death benefit while still alive if diagnosed with a terminal or chronic illness, providing funds for medical expenses or living costs. A waiver of premium rider can waive future premium payments if the policyholder becomes totally disabled due to illness or injury, ensuring the policy remains in force.

Employer-sponsored group life insurance plans are another avenue for coverage. Many employers offer basic group life insurance, which often does not require individual medical underwriting. While coverage amounts may be limited, typically one to two times your annual salary, it provides a foundational layer of protection.

For individuals facing a terminal illness, a viatical settlement might be an option. This involves selling an existing life insurance policy to a third party for a lump sum cash payment, which is less than the death benefit but more than the policy’s cash surrender value. The buyer then assumes responsibility for future premiums and receives the full death benefit upon the insured’s passing.

Finally, Accidental Death and Dismemberment (AD&D) insurance offers limited coverage. This policy pays a benefit only if death or dismemberment results directly from an accident, not from illness like cancer. It can be an inexpensive supplemental option, sometimes available through employers.