For normal, healthy, young, non-smoking people; it is very easy to buy life insurance for their family members. It is a sensible move to buy life insurance to safeguard the future of your loved ones in your youth. After middle age or old age, it becomes a bit difficult to go through a medical exam or a strict underwriting.
If a person is afflicted with any serious medical condition, it becomes really hard to buy a good life insurance policy. As with HIV-Positive people or Cancer patients, it is quite difficult to qualify for a suitable life insurance policy.
- Can you buy life insurance for cancer patients after diagnosis?
- Is there life insurance for cancer patients?
- What is remission?
- What is the waiting period for qualifying for life insurance after cancer?
- Which life insurance types are better for me after 2-10 years of remission therapy?
- How much is the cost of cancer life insurance?
Can you buy life insurance for cancer patients after diagnosis?It becomes really hard to qualify for any life insurance for people with cancer after diagnosis, but it is possible. Yes! You can buy small coverage typical policies for life insurance afterwards too.
Is there life insurance for cancer patients?Buying life insurance with cancer can be a daunting task for cancer patients.. It is slim picking, the only options available till he enters the remission process are:
- Burial Insurance for cancer patients
- Guaranteed Acceptance
- Group Life Insurance by Employer
What is remission?Remission is the treatment procedure for cancer. After receiving the treatment consistently for about 2 to 10 years, your eligibility becomes higher with life insurance firms. There is a waiting period even then. The waiting period differs for different types of cancers.
What is the waiting period for qualifying for life insurance after cancer?Firstly, lets list the factors that affect the length of the waiting period:
- Cancer type
- Cancer invasiveness
- Chances for cancer recurrence
- Bladder cancer: 2 years
- Bone cancer: 5 years
- Breast cancer: 2 years
- Cervical cancer: 1 year
- Colon cancer: 2 years
- Kidney cancer: 3 years
- Leukemia: 10 years
- Lung cancer: 3 years
- Lymphoma: 2 years
- Metastatic cancer: 5 years
- Ovarian cancer: 3 years
- Prostate: 1 year
- Rectal cancer: 2 years
- Skin melanoma: 1 year
Which life insurance types are better for me after 2-10 years of remission therapy?After remission, the cancer patient’s life expectancy increases drastically and they are termed as cancer survivors. Life insurance for cancer survivors includes following options:
1- Term lifeAfter successful remission for 5 to 10 years, you can buy term life insurance for 10-20 years. It has fixed and cheap premiums. If you die within your term, your dependents will get the death benefit payout.
2- Whole lifeIt is a permanent life policy with a good coverage, and offers fixed pricey premiums. It lasts your lifetime. This covers many expenses of your loved ones after you pass away. This offers you a cash value for some withdrawals while you’re alive.
3- Universal lifeIt is also a permanent policy with great death benefit payout. It has heavy premiums and it offers cash value to use during lifetime. The cash value can be invested in stock or index for certain types of universal life policy.
4- Burial insurance for cancer patientsBurial insurance is compulsory to buy because it covers your final expenses after your death. It is small coverage $25,000 and covers the funeral ceremony arrangements and medical bills. It pays out in 24-48 hours after claim approval.
5- Simplified issueYou do not have to give a medical exam for it, it is also relatively cheaper for premiums. It has no waiting period and pays out instantly after claim approval. You have to answer some health questions, that’s all.
6- Guaranteed issueNo medical exam, no health queries, everyone can apply, everyone gets accepted. This is expensive and you have to be 45 years old or more. It comes with a 2 years’ waiting period. It has small coverage too.
7- Group life by employerIt is available for cancer patients after diagnosis too. It is a small coverage $50,000 policy. This is given to you by the employer as long as you do not move on to the next job. No health questions or medical exam needed for it.
How much is the cost of cancer life insurance?
The cost of life insurance policy for a normal person is 4 times less costly than for a cancer patient. In fact, let’s consider the real life example of Wilson Coffman.
In 2019, Wilson Coffman was diagnosed with colon cancer while he was buying life insurance for the second time. Wilson works as an independent life insurance agent in Huntsville, Alabama.
When Coffman bought the life insurance policy for the first time, when he was normal, he bought a $500,000 coverage policy. He kept paying monthly premiums of $100 for it. Then he got diagnosed with colon cancer, and he kept paying the same $100 premiums for his previous policy.
Due to growing expenses, Coffman bought a second life insurance policy of the same coverage of $500,000. This time he was applying as a cancer patient in the process of remission. The same policy monthly premium was $800, for him.
Wilson Coffman quoted his own example, to raise awareness amongst people that getting afflicted with cancer can make buying life insurance almost impossible for you.
Another important factor to understand is: The Classifications system to determine life insurance rates for individual applicants:
- Super preferred
Anyone who has a high-risk job, or high-risk hobbies, or high-risk habits, or is an HIV-Positive patient, or is a chain smoker, or a substance abuser, or a cancer patient is included in the “Substandard” or “Table-Rating” category. Life insurance rates are the highest for people who fall in this category. Click here to get a quote from Insure Guardian!
Frequently Asked Questions
1- Is cancer expensive with insurance?
Yes, life insurance for cancer patients is notably more expensive due to the higher risk associated with their health condition. The cost can vary significantly based on the type and stage of cancer, the length of time in remission, and other personal factors.
2- What is the best insurance if you have cancer?
The best insurance for cancer patients often includes options like burial insurance, guaranteed acceptance, and group life insurance provided by employers. It’s essential to work with an experienced insurance agent who can help you navigate the options and find the most suitable coverage for your specific situation.
3- Can I improve my chances of getting life insurance after a cancer diagnosis?
While it can be challenging, there are ways to increase your chances of obtaining life insurance after a cancer diagnosis. These include maintaining a healthy lifestyle, regularly following up with your healthcare provider, and providing thorough medical records and documentation of your treatment and remission. Working with an experienced insurance agent who specializes in high-risk cases can also be beneficial in finding suitable options.
4- Can I switch or upgrade my life insurance policy after cancer remission?
Yes, after achieving remission, you may have the opportunity to upgrade your life insurance policy to a more comprehensive or cost-effective plan, especially if you initially purchased a smaller policy during your diagnosis. Consult with your insurance agent to explore your options for enhancing your coverage.