Receiving a cancer diagnosis is a colossal life disruption in-and-of-itself. It’s enough of a struggle to be told that you have cancer and that intensive treatment may be required in order to stop the growth of whatever cancer is developing.
In cases of terminal cancer diagnoses, there simply are no words to describe how much life changes. Suddenly, every minute of every day becomes critically important; friends and loved ones become crucial to the quality of life that the cancer patient experiences until the end.
During these fragile, sensitive phases of life, the topic of acquiring life insurance is likely to come up. It’s not unreasonable to consider the option of getting life insurance coverage, especially when a cancer outlook is dire.
In this article, the life insurance professionals at Shell Mutual Insurance are sharing some information about buying life insurance after being diagnosed with cancer.
Can Newly Diagnosed Cancer Patients Get Life Insurance?
Let’s address this question first: is it even possible to obtain traditional life insurance if you’ve been recently diagnosed with cancer?
The answer is that it depends on two factors: your health history and the insurance carrier in question.
- If you are actively undergoing treatment for cancer, it’s going to be nearly impossible to obtain traditional life insurance or whole life insurance coverage. Alternatively, it might be worth investigating alternatives like final expense insurance coverage, which is different from traditional life insurance.
- If you are in remission or if there is cancer in your family history, it is likely that you will be able to obtain traditional life insurance coverage at a competitive rate
We realize that dealing with a cancer diagnosis is stressful enough as it is. Sorting through all of the life insurance coverage options might not be something you even have the energy for right now.
Depending on what variety of cancer you have, how long you’ve been in remission (if this pertains to you), and whether or not your immediate family has a history with cancer will all play a role in the kind of coverage options available to you and what your monthly premiums will be.
Skin cancer in specific can be viewed a little differently compared with other cancers. Some insurance carriers will allow for a new life insurance policy to be issued to someone who has recently received a skin cancer diagnosis, but these situations are dealt with on a case-by-case basis, and a more involved conversation between you and the carrier is going to be required before the policy can be issued and ‘in effect’.
The Guaranteed Issue Life Insurance Option
For cancer patients who want life insurance coverage but who don’t qualify for regular, term insurance coverage, a Guaranteed Issue life insurance policy is something that could be worth considering.
Guaranteed Issue life insurance coverage doesn’t require a medical exam. What’s more, a medical questionnaire isn’t even necessary. Underwriters who issue these policies aren’t interested in knowing anything about your medical situation, and for the removal of this requirement, the premiums are higher and the payouts are lower.
Just about all Guaranteed Issue policies are based on age, not on medical status. These policies are issued using ‘units’ of coverage, typically priced at $1,000 per unit. Depending on your age, these policies can max out at certain payout amounts. Some carriers max out at $10,000, whereas others can offer Guaranteed Issue life insurance coverage with as much as $25,000 as a death benefit.
Here’s an example:
Let’s say you’re a 75-year-old man who has recently been diagnosed with terminal cancer. You’d like to have at least $10,000 in Guaranteed Issue life insurance coverage.
For this level of coverage, you can expect to pay about $125 a month in premiums.
For Guaranteed Issue life insurance coverage with a $25,000 death benefit, however, your monthly premium would be somewhere in the $310-$325 per month range.
Remember, you cannot be declined coverage for a Guaranteed Issue life insurance policy strictly based on your medical situation, which makes this type of coverage ideal for those with a recent cancer diagnosis.
Even though you will end up paying more in premiums for less coverage, you will still be able to secure some peace of mind.
Have Questions about Life Insurance? We Have Answers.
At Shell Mutual Insurance, we’re dedicated to providing you with the broadest, most affordable life insurance coverage options available anywhere.
When you’re ready to receive competitive quotes for the life insurance coverage most suitable for you, contact us.