Life Insurance For Cancer Patients

From the point of view of an insurance company, life insurance premiums are evaluated based on the risk an applicant poses based on different demographic factors. Insurance companies specifically question the risk of potential policyholders that suffer from cancer. Thus, insurance underwriters structure policies based on statistical data from the Canadian Cancer Society.

In this article, we will explore different life insurance policies and their advantages with a specific focus on policies that pertain to applications that suffer from cancer.

Key Findings Of Cancer Statistics – Canadian Cancer Society

Cancer is the leading cause of death in Canada. A staggering 2 out of 5 deaths (~ 43% of all deaths) are due to cancer. There will be 229,200 new cancer cases in 2021, in contrast to 225,800 new cancer cases in 2020 in Canada. From the number of new instances, approximately 84,600 Canadians will die due to cancer in 2021 alone. 

Statistical data also shows that there is a higher likelihood of developing cancer for Canadians aged 50 and above. However, that does not mean it can not occur at a younger age. 

Canadian males have a slightly higher chance (556 per 100,000) of being diagnosed with cancer against Canadian females (485 per 100,000). The most common cancer in Canadian men is prostate cancer, while Canadian women are most likely to develop breast cancer. 

The statistics are a cause of concern for insurance providers, especially in instances when someone recently diagnosed with cancer or a cancer survivor is seeking life insurance. Let’s look at some frequently asked questions about life insurance and cancer.

Does Life Insurance Cover Cancer?

Applications for conventional life insurance plans include a detailed questionnaire containing questions related to cancer.

A simplified life insurance application will have a few questions related to cancer risks. A guaranteed issue life insurance application, however, in most cases does not have a questionnaire because it comes with a two-year waiting period. 

Therefore, a guaranteed life insurance policy is often the best option for individuals who are diagnosed with cancer but have a positive prognosis and a good chance of beating cancer. 

These individuals are denied a traditional or simplified life insurance policy, but they can avail of a guaranteed issue life insurance policy regardless of their state of health.

Instead of compensation for a life insurance claim, premiums are reimbursed to beneficiaries if the policyholder becomes seriously ill in the first two years and passes away. 

Do not hesitate to ask your life insurance provider to give answers in writing about your life insurance policy and the cancer treatments covered including post-recovery.

Can You Get Life Insurance With Cancer?

Yes, you have the potential to get approved for life insurance when diagnosed with cancer. Several customized life insurance policies are available for cancer patients both in the early or later stages of diagnosis. 

Some life insurance policies are convenient for less critical cancer patients who have been diagnosed at earlier stages and demonstrate a relatively stable condition. However, cancer patients with more severe symptoms can also get a life insurance policy. 

Each life insurance application assessment is unique, and the following are guidelines for life insurance policies for individuals with cancer.

Less Than 2 Years Since A Cancer Diagnosis:

Apply for a simplified or guaranteed life insurance policy. There are no medical exams or medical questionnaires for a guaranteed life insurance policy, but it is the most expensive policy with the least coverage. 

There is a two-year waiting period for the insurance policy to become fully active so the beneficiaries can process a life insurance claim. If the policyholder dies within two years, beneficiaries only get the cash amount of premiums paid for the policy.

2 To 5 Years From A Cancer Diagnosis:

People with a stable health condition and prevalent cancer for the last 2 to 5 years can potentially opt for a rated traditional or simplified life insurance plan based on the entire medical evidence provided. Simplified insurance comes at a higher cost with lower coverage limits, but the applicant needs to answer a short questionnaire. 

5 To 10 Years From A Cancer Diagnosis

There is a possibility of getting a traditional life insurance plan if you currently have a stable condition since the cancer diagnosis and all medical evidence disclosed. The traditional life insurance policy will be a rated policy which means that you will pay a higher insurance rate, but you can still take advantage of other factors. 

For example, you might be able to get high coverage limits without any waiting period.

More Than 10 Years From A Cancer Diagnosis

People who survive more than ten years after a cancer diagnosis have the potential to get a traditional life insurance policy with standard rates based on all medical evidence disclosed. The rates will be competitive with applicants who do not have any significant health concerns.

Applying For Life Insurance With Cancer

Applying for life insurance with cancer is not very different from getting life insurance without cancer. Consider cancer as a health pre-condition that limits your insurance options. In most cases, insurance providers will ask you the following questions: 

  • Do you have a family history of cancer?
  • When was your cancer diagnosis?
  • How is your health since the diagnosis?
  • What stage is your cancer, and what type is it?
  • Do you have other health concerns (diabetes, blood pressure, obesity, and so on)?
  • Are you getting chemotherapy or any medical cancer treatment?

Insurance providers ask these questions to provide you with up-to-date market competitive rates. Insurance providers are also concerned with the mortality rates associated with some types of cancer. For example, applicants with skin cancer might pose a higher risk of insurance in comparison to someone with breast cancer or colon cancer. 

Getting An Expert Opinion

The professionals at McIver Insurance, in Nova Scotia, Canada, can help you select the right policy based on your current medical condition. Their experienced specialists can provide you with guidance based on your particular case and assist in helping you find life insurance that not only makes financial sense but also safeguards your family and loved ones in case of an untimely death. 

One can request a free life insurance quote to comprehend the costs and exclusions based on your specific conditions. Simply pick up the phone and talk to one of our expert customer service representatives about your health conditions. They will help you get the best-personalized assistance based on your life insurance requirements.

** All traditional insurance providers underwrite differently and each specific case is unique based on the applicant’s entire medical history ***