Life Insurance For Cancer Survivors

According to the American Cancer Society, over 1.4 million new cases of cancer will be diagnosed by doctors in the U.S. There will also be over 559,650 cancer-related deaths. If, like the majority of cancer patients, you survive for five years or more after your diagnosis, you may be fighting another battle: purchasing life insurance.

Although it can be difficult, buying life insurance for cancer patients is not impossible.  The chances of getting insured depend on various factors: the type stage, and grade of the cancer, as well as the treatment plan. The curability of the cancer directly impacts the cost of life insurance. In fact, for certain low-risk types of skin cancer, having a history of this disease may not have any effect on premiums for some life insurance companies.

People with common forms of breast and prostate cancer that respond well to treatment may be able to get a “standard” rating for life insurance. On the other hand, patients with a history of colon cancer or leukemia may fall into “substandard or “high substandard” categories, or be declined outright. Cancer that has metastasized will most likely not be able to obtain coverage.

"We're better and better able to differentiate the risks of individual cancers," according to Dr. Charles Levy, the senior vice president and chief medical officer of AIG American General Domestic Life Insurance. Insurers like AIG American General have complex formulas to determine premiums which can take account of cancer types and treatments.  This means better premiums, since applicants aren’t all grouped together as “average.”

In general, life insurers won’t offer a policy to anyone currently undergoing cancer treatment. They may add a surcharge, also known as a temporary flat extra, to applicants with a history of certain cancer types. AIG American General, as an example, typically charges temporary flat extras for two to five years, varying based on the cancer type and treatment history. Although these premiums add to the overall cost of life insurance coverage, the upshot is that they will automatically disappear after a set time.

Cancer Insurance Risk Specialists

Dedicated life insurance agents will search on your behalf for issuers willing to sell you a life insurance policy if you’re a cancer survivor. You may be better off, however, if you seek out a broker whose specialty is finding life insurance coverage for people with a history of these diseases.

These specialist brokers will be familiar with the specific questions underwriters will ask when reviewing your application. Most of these brokers also have relationships with multiple insurers, and will therefore know which companies offer the best price and coverage for cancer survivors. Some of these specialist brokers will even have experts that gather and organize your medical records for you. By sending your application to life insurers that are the most likely to approve coverage, these brokers will enable you to find the most accurate quotes and the lowest premiums for life insurance. Lastly, it’s important to check the financial strength of the insurer you’re considering before you buy a policy, and also ensure that the agent or broker you’re working with is licensed in your state.