Life Insurance & Cancer: All You Need to Know

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Article Contents
Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on April 01, 2025

Visit author page
Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on April 01, 2025

Visit author page

4 minute read

Article Contents

Getting a cancer diagnosis can turn your life upside down, and managing your finances amidst the news can be even more confusing. Something you might wonder is: can you get life insurance if you have cancer? The good news is that it’s possible, though it may not be as straightforward as you think. 

Whether you’re already undergoing treatment, newly diagnosed, or in remission, some options can provide you and your loved ones with peace of mind. Learn the policy types you qualify for, what factors affect your rates, and what you can do to secure the best options.

Life Insurance for Cancer At a Glance

  • A cancer diagnosis can affect life insurance eligibility based on the cancer type, prognosis, treatments received, and chances of recurrence.
  • Timing requirements for getting life insurance may vary, with some insurance companies requiring a waiting period before individuals can apply.
  • Cancer patients can keep their insurance rates low by maintaining a healthy lifestyle, providing regular health updates, and working with a broker. 

Can You Get Life Insurance if You Have Cancer?

Yes, you can get life insurance if you have cancer, but it may present some obstacles. With your consent, your life insurance provider may write to your healthcare provider to request medical details and an Attending Physician Statement to determine your premiums.

If you get approval, your initial premiums will be high as the company will put itself at high risk. Should your cancer improve over time, your premiums may drop.

Life Insurance with Cancer What to Expect

What if You Already Have Life Insurance?

If you already had life insurance after receiving your diagnosis, your coverage won’t typically change (given that you were honest about when you were diagnosed). Insurance companies can’t make retroactive changes. 

However, you may lose employer-provided insurance if your diagnosis requires you to leave your job. Still, you can convert your workplace policy into individual insurance. 

Does Life Insurance Cover Cancer?

Technically yes, but it depends on your policy. If you already had a life insurance policy that included riders like accelerated death benefits or a terminal illness, you can access the death benefits while alive to cover medical expenses or use them for income replacement.

Types of Policies That May Approve Cancer Patients

While patients in remission can qualify for traditional life insurance, those currently undergoing treatment may have limited options. Here’s what you can consider.

As its name suggests, guaranteed issue life insurance is a no-medical policy that guarantees acceptance with fast approval. You won’t have to undergo a medical exam or provide your medical history. 

However, you may only qualify for lower coverage amounts while paying higher premiums. You may also have to pay an upfront balance to mitigate the risk.

Like guaranteed issue life insurance, you won’t have to undergo a medical exam or provide your medical history. However, your insurer may ask questions about your health that can influence how much coverage you get. Your diagnosis date may also affect your premiums.

The good news is that there’s a minimal waiting period, and you can get coverage in days instead of weeks or months. The trade-off is the potential for a graded benefit period – if you die within a short time of purchasing your policy, your family may not receive the full death benefit.

If you’re working when you are diagnosed, your employer may still offer you coverage through group life insurance without being penalized. Of course, you’ll only have protection while you’re employed. How much coverage you receive may also rely on your current salary.

If you have a terminal diagnosis, final expense insurance may be a good idea. You can use it to tailor funeral and end-of-life costs like estate taxes or uninsured medical expenses. 

Cancer survivors have a high chance of qualifying for traditional life insurance, which may take time. Some insurers may wait until you reach key remission milestones, such as 2 or 5 years. Your premiums may also be higher because of your medical history.

If you’re considering applying for traditional insurance while in remission, working with an insurance broker who can shop multiple options for you can be helpful.

Factors That Influence Your Approval and Rates

While cancer patients and survivors can qualify for life insurance, certain factors can influence how easily you get approved and your premiums. Each company has unique underwriting guidelines, but here’s a look at how certain factors can affect your application.

Type and Stage of Cancer

Cancers with higher survival and lower recurrence rates are less risky to insure. For example, insurers may be more confident in insuring someone with basal cell carcinoma or early-stage thyroid cancer. Conversely, people with lung, pancreatic, or late-stage breast cancers may have a more challenging time with approval. 

Time Since Diagnosis or Remission

When you received your diagnosis and how long ago you completed treatment can also influence underwriting decisions. Most insurers will want to wait for remission milestones before providing full coverage, but the waiting period will also depend on your type of cancer. 

For example, if you survived early-stage melanoma, you may qualify for traditional insurance after one or two years. On the other hand, a leukemia survivor may be subject to a longer waiting period of around five years.

Your policy may be subject to graded benefits if you’re still undergoing treatment.

Age and General Health

While your cancer history will be the most significant factor determining your underwriting approval and insurance rates, your overall age and health can also influence how insurers view your risk. Older individuals with habits like smoking or drinking alcohol may face higher premiums. 

Medical Records and History

Insurers require complete disclosure when determining your rates. They’ll want to review medical records and information like: 

  • The treatments you received
  • Treatment outcomes and prognosis
  • Follow-up care
  • Current health status
  • Additional notes from the physician

The Two-Year Waiting Period: Why It Matters

If you’re applying for life insurance with cancer – most typically a guaranteed or simplified issue policy – you may encounter a two-year waiting period. This period covers high-risk clients and allows insurers to manage potential losses. 

If you die within this two-year waiting period, your beneficiaries may not receive the full death benefit. Instead, they may receive a refund on the premiums paid with slight interest (often between 5% and 10%) or only 30% to 40% of the benefit amount. After these two years, your beneficiaries can receive the full death benefit if the policy is still active.

Cancer patients must understand the two-year period, as they can consider combining policies and understand exactly what coverage they can receive. 

Cancer Survivors Can Get Better Rates

Having cancer doesn’t mean you don’t have good life insurance options. The further you are from your original diagnosis and the longer you stay in remission, the more affordable your policy becomes. Many insurers offer better rates when there are no signs of recurrence, you undergo regular check-ups, and you adhere to a healthy lifestyle.

In addition, if you bought guaranteed or simplified issue life insurance, you can reapply for a new policy with better rates.

Key Advice From MyChoice

  • Be honest with your insurer. Providing misleading or incomplete information can lead to claims denials.
  • Consider a limited policy, as it’s better than having no coverage at all. If you’re recently diagnosed, your best option may be a guaranteed or simplified policy.
  • Keep comprehensive medical records to present to insurers. Underwriters can assess your health more comprehensively.

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