How Will Cancer Affect Your Life Insurance Policies?

Last Updated: 

May 3, 2024

It is no secret that cancer changes lives, and cancer patients and their families face staggering financial challenges as they fight the disease every year. But what many people don't know is that cancer also has a significant impact on life insurance policies. This article will explore how cancer affects life insurance policies and provide tips for securing your coverage.

Key Takeaways: Impact of Cancer on Life Insurance

  1. Qualifying Challenges: Cancer survivors often face higher premiums or may be denied coverage due to increased risk assessments by insurers.
  2. Coverage Exclusions: Some policies may exclude death caused by cancer, affecting the payout to beneficiaries.
  3. Policy Disclosure: It's crucial to disclose any cancer diagnosis when applying for insurance to avoid invalidation of the policy.
  4. Shopping for Policies: Comparing different insurers can help find those more amenable to covering cancer survivors.
  5. Additional Coverage Options: Consider riders or endorsements to enhance coverage, especially for cancer-related events.
Get Your FREE Signed Copy of Take Your Shot

Life insurance, and how does it work?

In a life insurance policy, the insured person agrees to pay premiums to the insurer in exchange for agreeing to pay a designated beneficiary a sum of money (the "death benefit") upon their death. In return, the policyholder agrees to pay premiums (usually monthly) for the duration of the policy term. Term and whole life insurance are two forms of life insurance, but it’s important to note that there are some life insurance with living benefits policies, which allow the holder access to some of the death benefits before passing away.

When choosing a policy, it is crucial to determine how much coverage you need and how long. You should consider your budget and whether you want permanent or temporary coverage. Life insurance can be essential to financial planning, providing security and peace of mind during your death.

How will cancer affect your life insurance policies?

Cancer might have a significant impact on life insurance policies in many ways. First, cancer survivors may have difficulty qualifying for life insurance coverage, and this is because life insurance companies consider cancer patients to be higher-risk applicants. As a result, cancer survivors may be charged higher premiums or may be denied coverage altogether.

In addition, life insurance companies will often exclude coverage for death caused by cancer. If you die of cancer, your beneficiaries will not receive the death benefit.

Finally, life insurance companies may limit the coverage you can purchase if you have cancer. For example, you may purchase limited life insurance if you are a cancer survivor.

If you have had cancer, it is essential to disclose this information to life insurance companies when applying for coverage. Failure to do so could result in your policy void or your beneficiaries being denied the death benefit.

What are the different life insurance policies?

The two most frequent types of life insurance are term life insurance and whole life insurance. Term only covers the policyholder for a set number of years, typically 10-20. This type of insurance is less expensive than whole-life insurance on average. However, it does not accrue cash value and expires at the end of the term. Therefore, if you want to maintain your coverage, you'll need to renew your policy or get a new one.

Whole is a type of permanent insurance that promises coverage for the rest of your life. Whole life insurance premiums are more significant than term lives, but they do not have an expiry date and will never need to be renewed.

What should you do if you have cancer and need life insurance?

There are a few things to improve your chances of receiving life insurance if you have cancer.

First, disclosing your cancer diagnosis to life insurance companies is essential when applying for coverage. Failure could result in your policy void or your beneficiaries being denied the death benefit.

Second, you should shop around and compare life insurance policies from different companies. Some life insurance companies are more willing to cover cancer survivors than others.

Finally, you may want to consider riders or endorsements to your life insurance policy. Riders are add-ons that can provide additional coverage for specific events, such as death caused by cancer. Endorsements, on the other hand, are amendments to your policy that can change the terms of your coverage.

While cancer can make it more difficult to get life insurance, there are still steps you can take to improve your chances. You may discover a life insurance policy that meets your requirements by shopping around and comparing policies from various providers.

How to shop for the best life insurance policy for you

When shopping for life insurance, comparing policies from different companies is essential. Some life insurance companies are more willing to cover cancer survivors than others. Here are a few tips to help you find the best life insurance policy for you:

Get quotes from multiple life insurance companies- life insurance premiums can vary significantly from one company to the next. As a result, shopping around and comparing life insurance quotes from multiple companies is vital.

Read the fine print- when comparing life insurance policies, be sure to read the fine print. Some policies may exclude coverage for death caused by cancer, while others may limit the amount of coverage you can purchase if you have had cancer.

Consider a rider or endorsement- riders and endorsements can provide additional coverage for specific events, such as death caused by cancer. Ask life insurance companies about riders and endorsements when shopping for coverage.

If you have had cancer, it is essential to disclose this information to life insurance companies when applying for coverage. If you do not comply, your policy could be rendered invalid, or your beneficiaries could be denied the death benefit.

In conclusion

Life insurance with cancer can be complicated, and however, you can take steps to increase your chances of getting coverage. You can discover a policy that meets your requirements by shopping around and comparing coverage from several providers.

People Also Like to Read...

Don't forget to check out our Case Studies and also how Business Coaching can help your business. If you're ready to talk further and get the full coaching experience you can book a FREE 30-Minute Coaching Session.