Life Insurance With Cancer: Getting life insurance after being diagnosed of cancer it’s very much possible. But it could be quite difficult and very much expensive. However, you can be able to purchase a policy. You have to determine if the policy’s cost and coverage offered is okay for your financial situation.
Cancer survivors that have been off treatment for two to five years are much more qualify for a insurance policy. But rates will still be higher, and there are a few forms of cancer that may preclude you from being accepted for coverage.
Life insurance can be useful if anyone depends upon your income; whether that’s your spouse to help pay the mortgage, your kids to help pay for college. You also need life insurance if anyone depends on your services. Getting to understand all of this most times can be really not worth your time. So below are the basic point you will need.
Understanding Life Insurance and Cancer
It’s best to buy life insurance when you are healthy and young because you’ll get the most affordable premiums and won’t have trouble qualifying for a policy. Often, though, people don’t buy life insurance until they’re older and have had some serious health issues.
Because cancer is a serious illness and some types of cancer have very high fatality rates, buying life insurance after a cancer diagnosis can be difficult.
Depending upon where you are in your cancer care, you may be very limited in what insurance plans you’re able to obtain, and you may have to pay very high premiums for coverage.
How Cost of Life Insurance Policy is Determined
Life insurance companies typically don’t just give insurance to everyone who applies. Instead, there’s an underwriting process that takes place. Life insurance underwriting involves assessing the risk that’s being insured against. In the case of life insurance, that means underwriters consider the risk that the policyholder will die while covered.
Underwriters determine if the risk is so high that the applicant should be denied coverage. Underwriters also set premiums and life insurance rates for those who are eligible for a policy, with higher-risk individuals paying higher costs.
During the underwriting process for a policy, underwriters want to look at all of the information available that sheds light on the likelihood you’ll pass away and the policy will have to pay the death benefit. Some of the key factors underwriters consider include:
Whether you currently smoke or have smoked before
Lifestyle risks, such as whether you engage in high-risk activities like skydiving
Your health status, including medical conditions you currently have or have had in the past (for example your cancer history)
Different insurance companies have different standards for underwriting. That means the impact of a medical problem, such as a cancer diagnosis, won’t be uniform across all providers. Some insurers may be more willing to give you coverage than others, and prices will vary from policy to policy.
How Does Cancer Influence the Cost of a Life Insurance Policy?
Once you have been diagnosed with cancer, insurers typically view you as a much riskier person to insure. That’s because there’s a greater chance you’ll pass away of cancer while covered by the policy, compared with someone who has never had a diagnosis of a serious ailment.
But, not all cancers are created equal, and not everyone with cancer has the same prognosis. So, cancer patients and cancer survivors are treated differently based on a few key factors that affect mortality rates. The insurer will consider:
The type of cancer you have
The stage of cancer
Whether you’re currently in a treatment plan and complying with medical advice
Whether you are now cancer-free and, if so, how long you have been cancer free
Companies typically divide policyholders into different classes when setting premiums. These classes include: preferred plus, preferred, standard, and substandard.
Someone who had cancer a long time ago and who had a type of cancer considered very treatable. Such as breast cancer or prostate cancer; may be classified as “standard,” whereas someone with cancers considered less treatable, such as leukemia, would likely be considered substandard.
And, those with metastatic cancer are likely to be denied a policy entirely from most insurers because mortality rates are too high.
What are the Best Life Insurance Policies for People with Terminal Cancer?
When you have terminal cancer types, insurers view you as very high risk because your cancer will likely result in your death. That makes getting standard coverage difficult or impossible. But, this doesn’t mean you can’t get life insurance coverage at all.
One of the best options available to you may be to buy a guaranteed-issue life insurance policy. While guaranteed issue policies have lower coverage limits than other types of policies, they do provide an option when you have no other way to get covered.
If you want to make sure your family has money to pay for funeral costs and funds to help them get by in the months after your death, a guaranteed issue policy is one of your best options.
Graded benefit policies may also be available to you, even after a terminal cancer diagnosis. With graded benefit policies, you get only a portion of the death benefit in the early years of coverage.
For example, you might get 25% of the death benefit if you die during the first year of policy ownership, 50% in year two, 75% in the third year, and 100% only after you have been covered for four years.
Can You Get Life Insurance if you’re a Cancer Survivor?
Once you’ve been cured of your cancer and your new diagnosis is No Evidence of Disease (NED), then it’s much easier to get coverage. Most insurers will provide you with a policy, although you may still be classified as a standard or substandard policyholder instead of a preferred or preferred plus candidate because of your medical history.
However, if a long time has passed since your diagnosis and if your cancer is considered unlikely to reoccur, you could eventually fall into the low-risk category and coverage would be very affordable.
To maximize the chances you’ll be approved quickly and at a good rate, have your medical records ready when you apply for coverage. Make sure your records clearly show you’re currently cancer free..
You Can Get Life Insurance Even with a Cancer Diagnosis
While it’s frustrating to try to shop for life insurance after being diagnosed with a serious health condition, you do not need a perfect medical history to get covered. You can get life insurance after a cancer diagnosis—even if the diagnosis is terminal. You just need to find the right type of policy, compare all your options, and shop around for the most affordable coverage.
Life Insurance with a Family History of Cancer
Having a family history of cancer will likely increase your rates, but the degree to which it does so will depend on the details of your family’s medical history. Insurers will typically want to know:
Type of cancer, as certain types is more likely to be passed genetically than others.
The number of relatives diagnosed and how you were related to them. Since these factors can also indicate how likely you are to be impacted.
The age at which your relative was diagnosed with cancer.