Life Insurance for Cancer Survivors: Essential Information
Is Cancer Covered By Life Insurance?
Cancer is covered by certain term and permanent life insurance policies. Beneficiaries will be paid out if you pass away within the coverage term. Accidental death and dismemberment insurance policies are the only policies that do not cover cancer. However, you need to be honest with your insurance provider about your cancer diagnosis, whether you’re a survivor or in treatment. The insurer may deny your beneficiary's claim if they can prove you lied about your condition or were dishonest in your application.
A contestability period typically applies for the first two years of a life insurance policy, during which an insurance provider may deny a claim if you submitted false information. In order to guarantee that your recipients get the insurance payout, it is important to provide a comprehensive and completely truthful history of your health.
Purchasing Life Insurance as a Cancer Survivor.
It is possible to take out life insurance if you are generally healthy and in remission. Although certain policy applications may be rejected depending on the type of cancer that you were diagnosed with. Cancer survivors may also pay higher monthly premiums. On the other hand, if you've been in remission for many years you should be able to get life insurance.
You will need to prove that you are in fact in remission, as you may otherwise be denied coverage. In addition, if you suffer from additional conditions, you may also be rejected or received expensive quotes. Approval for life insurance varies from one insurer to the next, but typically, you can expect to wait for two to five years after your last treatment. This waiting period will also be affected by the stage and type of cancer.
Cancer survivors are more likely to have their application for life insurance approved if they can provide the insurer with detailed answers to questions relating to their cancer, and provide medical records to support their answers.
Different Types of Cancer and Life Insurance.
The type of cancer as well as its progression will determine whether or not a cancer survivor's application for life insurance will be approved. The chance of rejection increases if the cancer has metastasized, or spread to other areas of the body. The longer your remission period, the higher the likelihood of approval.
Only nonmelanoma skin cancer is considered a low enough risk to qualify for a preferential life insurance premium. Granted. you'd need to be in great shape, without any post-treatment problems. Thyroid, breast, testicular, and prostate cancer survivors may typically qualify for regular rates, as they are classified as moderate-risk. If you’ve been in remission for several years, but have suffered from more than one type of cancer, you may be eligible for coverage, although at higher rates. Some cancers, including pancreatic cancer, leukemia, and colon cancer, are seldom accepted, as they are regarded as too risky to insure.
Life Insurance Policies Suitable for Cancer Patients.
Cancer patients and cancer survivors have limited options when it comes to life insurance. The majority of whole and term life insurance plans do not cover cancer patients, and applications are likely to be denied. Guaranteed whole life insurance or group life insurance are more suitable options for cancer patients. Make sure that the policy that you apply for has no waiting time, as those with waiting periods do not pay out death benefits during the first few years of cover.