If you have been diagnosed with cancer and already have life insurance, you are fortunate. If you don’t have life insurance at the time of your diagnosis, it will be hard to get traditional life insurance.
If you are in remission, most life insurance providers will have a waiting period — usually five years — before you will be eligible for traditional life insurance. Waiting periods vary by company and based on the type of cancer you had.
However, you can qualify for no medical exam life insurance. The downside is that your death benefit will be limited, and you’ll pay more.
Can you get life insurance if you have cancer
If you are currently receiving cancer treatment or are in remission, you will be ineligible for traditional life insurance, like term life or permanent life.
Most life insurance carriers will require a waiting period — usually five years — before you will be eligible for traditional life insurance.
Even after the waiting period, the type of cancer you had and your family history may present obstacles for coverage. Also, you can expect high premiums.
If you already have life insurance at the time of your diagnosis, that policy will not be impacted.
Life insurance premiums are based on your health risk
The underwriting process is how the insurance company determines your insurability — how much of a risk you are and how much to lend you. During the underwriting process, the insurance company collects information about your health (medical history), job, income, finances, and other personal information.
Traditional life insurance policies require a medical exam, which includes a blood test and urine sample, as part of the underwriting process. If a disease is discovered during the exam process, it may make it more difficult to get coverage. That is why geneticists suggest getting private life insurance coverage before genetic testing, because the results may disqualify you for life insurance in the future.
Based on your medical exam, you are assigned a risk assessment category. Once your risk is assessed, your premiums are calculated based on your risk and you are issued a policy.
Here’s an overview of the different risk classifications used by insurance companies:
Risk Classification | Definition |
Preferred Plus/Elite | Excellent health without any big risk factors for coverage will most likely end up rated at Preferred Plus, giving them the lowest possible premium payment. |
Preferred | Excellent health but may have some subtle red flags, but will enjoy low premiums. |
Standard Plus | Above-average health, but some things may be outside the ideal range. You will have low premiums just not as low as Preferred or Preferred Plus. |
Standard | Normal risk and insurable at standard rates. |
Substandard | Impaired risk deemed undesirable due to medical condition or hazardous occupation requiring a higher premium charge. |
Smoker | Higher risk because nicotine negatively affects health and impacts life expectancy. Will pay more than non-smokers. Some companies separate cannabis users from tobacco users. |
Data sourced from NAIC and Quotacy
No medical exam life insurance is an option
People with certain pre-existing health conditions, like cancer, may be ineligible for traditional life insurance. In this situation, no medical exam life insurance is an option.
Not knowing your medical history means the insurance company is taking a gamble on your health. The benefit of no medical exam life insurance is that acceptance is typically guaranteed. The drawbacks are limited coverage amounts — usually up to $100,000 — and there may be a waiting period for death benefits to payout (typically two years).
There are two types of no medical exam life insurance: guaranteed issue and simplified issue.
Final Expense | Guaranteed Issue | Simplified Issue |
A type of guaranteed issue policy with a low death benefit that covers funeral and burial expenses | No medical exam and for those 50 years old and older. Coverage up to $25,000 | No medical exam with no age limit, but you still have to complete a health questionnaire. Coverage up to $100,000 |
Guaranteed issue life insurance has no medical exam or medical questions. It is sometimes referred to as “final expense” insurance because the coverage amounts are so low that they basically only cover funeral and burial expenses.
Some guaranteed issue life insurance policies have a two-year waiting period, meaning that if the policyholder dies within the first two years of having coverage, the policy won’t pay out. Also, you must be 50 and over to qualify.
For guaranteed life insurance, your premium depends on your age, gender, where you live, and coverage amount. Understand that there are limits on coverage amounts and it varies by insurance provider.
If you’re in remission, simplified issue life insurance is an option
Once you’re past the waiting period and are in remission, you can apply for traditional life insurance coverage. However, the underwriting process will be extensive and your family medical history will factor in.
Mark Williams, CEO of Brokers International, told Insider that people with former cancer diagnoses should use independent agents while shopping for life insurance because companies underwrite differently and agents would know which ones are more flexible and liberal.
Williams said the longer you are cancer-free or in remission, the better. He suggested looking into Brighthouse, Principal, and Guardian. You may still pay more and you will need to send your medical records with your application.
Williams said depending on the company, underwriting will consider:
1. Type of cancer
2. Types of treatment
3. How long you had it
4. Family history of cancer
5. How long in remission
If you’re past the waiting period, another option is simplified issue life insurance. Simplified issue doesn’t have any age restrictions or a medical exam, but there is usually a health questionnaire. It will not be as extensive as traditional life insurance. Also, death benefit amounts are higher than with guaranteed issue life insurance.
If you fail to disclose a condition and die, the insurance company can withhold death benefits to your beneficiaries.
According to ColonialPenn, some simplified issue no medical exam life insurance policies have a two-year waiting period, meaning that if the policyholder dies within the first two years of having coverage, the policy won’t pay out.