If you are wondering whether life insurance is possible after a cancer diagnosis, the answer is usually yes. Your choices will hinge on variables such as the type of cancer and whether treatment has concluded.
We consulted two life insurance experts who specialize in high-risk applicants to uncover the specifics regarding coverage limits and available options.
Diagnosis and Eligibility
Active cancers that have not gone into remission are generally uninsurable. The sole exception might involve very low-stage prostate cancer cases in older individuals where doctors advise “watchful waiting.” Even in those specific instances, obtaining coverage is difficult, with only a handful of carriers potentially offering a policy.
For most active forms of cancer, insurers will delay regular underwriting until you have finished therapy, plus a waiting period that can last anywhere from six months to five years, depending on the diagnosis.
Some cancers undergo underwriting more quickly. Certain skin cancers, such as basal cell or squamous cell carcinoma, can be covered immediately following treatment provided the size, depth, and location satisfy the insurer’s requirements.
Coverage for Existing Policies
If you already hold a policy, your protection remains valid as long as premiums are paid. An insurance provider cannot cancel your policy simply because you have fallen ill.
Many policies include accelerated death benefit riders. These riders allow you to access a portion of the benefit while you are alive if you are diagnosed with a terminal illness. Under certain circumstances, an existing policy can even fund cancer treatments.
Insurers carefully examine your cancer’s TNM staging, a method doctors use to assess the disease’s progression. The pathology report is typically the most critical document in the medical records for underwriting purposes.
Using this report alongside data on your treatments and remission duration, underwriters determine if they will offer coverage and at what price point.
Should you be currently receiving treatment, securing traditional life insurance is usually challenging but not impossible. Guaranteed issue life insurance approves you without medical exams or health history questions.
Employer group coverage is another potential avenue. This is generally available when a business has at least five employees enrolled, although the benefit amounts may be lower than private plans.
However, these options come with compromises: lower coverage limits typically around $25,000 to $50,000, and higher cost.
Should your cancer be in remission, life insurance may become an option following a waiting period. These waiting times will vary based on the type, stage, and grade of the cancer.
As a survivor, you should anticipate paying more than someone without a cancer history, even years after remission. Survivors who qualify through regular underwriting typically face higher premiums.
To estimate potential costs, consider consulting a high-risk life insurance broker who can analyze your medical history and provide a tailored quote.
Both specialists advise working with a professional and stress the importance of being honest on your application. Lying about your health history can jeopardize the death benefit your family receives.
If you already own a policy, do your best to maintain it and discuss conversion options with your agent before making changes. When you are ready to apply for new coverage, a high-risk specialist can present your case to multiple insurers to find the best match before you complete a full application.
Policy Conversion and Riders
Check if your existing term life policy includes a guaranteed conversion option. This feature permits you to switch to a permanent plan without undergoing medical exams or answering health questions.
Working with Specialists
Give your broker full details about your cancer, including the pathology report. This helps them accurately present your case to underwriters.