Life insurance for cancer patients and survivors

Whether you’re battling cancer now or you’re a survivor, you could still be able to buy life insurance. Insurance providers will assess your medical history before deciding on your eligibility and what to charge you in premiums.

How to get life insurance after having cancer

In many cases, cancer survivors are able to take out a life insurance policy. However, life insurance providers are unlikely to offer a policy for at least two or three years after you’ve recovered.

The first policy you get will probably be pretty expensive too, as insurers will see you as a high-risk customer – although prices should get better with time.

In very rare cases, you can get life insurance that excludes cancer-related claims, but these are hard to come by. Plus, it might not give you a whole lot of peace of mind if there’s a high chance your cancer might return.

What factors do insurers assess when I apply for life insurance with cancer?

Insurers will treat each person who applies differently and will review your case on an individual basis. When trying to work out how much of a risk you are now, and in the future, they will look at various factors, such as the following:

1. The type of cancer
2. The grade and stage of the cancer
3. What sort of treatment you had
4. How long you’ve been in remission

How to get life insurance with cancer

If you’re undergoing treatment for cancer, finding life insurance is far more difficult and will certainly be more expensive – however, it could still be possible.

Depending on your diagnosis, you may be able to sign up to medically underwritten insurance policies, whether they are term life or whole of life plans. However, you could well be rejected.

If you do get rejected, you could opt for an over-50s plan, which is a type of whole of life insurance that you can get without answering any medical questions. However, there are a few key features to watch out for:

• Time limits. These policies will typically not payout if you die from natural causes within a year or two of starting, but will probably refund the money you’ve paid in.
• Payout. While your monthly payments will be an affordable amount, it means the payout won’t be huge.
• No long-term value. You have to pay every month until you die or the cover will end, and if you live for many years, the payout may be less than what you’ve put in.

What questions might I be asked?

Unless you’re applying for an over-50s policy, insurance companies will ask you a lot of questions about your cancer and your medical history, and they could ask you to undergo a medical exam. As these application processes can be upsetting and emotional, you might want to turn to a loved one for support and be ready to answer the following questions:

• Do you have a family history of cancer? What age did it happen?
• Has anyone in your family died from cancer? If so, at what age?
• What type of cancer do you or did you have?
• Have you been advised that the cancer is treatable and what’s the percent chance of success?
• What treatments did you receive while you had cancer?
• Are you currently in remission? If so, how long have you been in remission?
• Are you still taking medication or receiving tests?
• What is the contact information of your doctor?

Can I get life insurance if I have a family history of cancer?

Yes, however your family’s medical history could affect the cost of your premiums. If a close relative such as a parent or sibling died from cancer at a relatively young age, an insurer may see you as being a higher risk. Distant family members and a cancer diagnosis later in life shouldn’t have much of an effect on your application.

Can I take out critical illness insurance for cancer?

When taking out a more standard life insurance policy, you can often get critical illness cover as an add-on. This pays out a tax-free lump sum if you suffer from a specified illness. It can help pay medical bills, but you can theoretically use the money on living expenses or even going on a holiday.

If you are in remission, you may be rejected, although it’s worth getting in touch with insurance providers to see if it’s possible. Make sure they’ll cover your previous cancer if you relapse too.

The following cancer types are commonly covered under critical insurance policies:

It’s important to keep in mind that insurers determine application approval and coverage based off of each individual situation.

Bottom line

Each insurance company will have its own decision processes for covering cancer patients and survivors, so don’t be disheartened by any rejections. Informally ask insurers over the phone or by email whether they are likely to cover your type of cancer because if you’re formally rejected by an insurer, other providers can find out about this – which could sway their decision. When you’ve done your homework, apply with several companies, and hopefully you should get some affordable offers that give you the protection you need.

Frequently asked questions

• Do I have to tell my insurer if I am diagnosed with cancer after taking out insurance?

  It depends. Some policies may require you to notify your insurer about any new diagnosis, so it’s always a good idea to check the small print before signing up. Even if you do need to tell the provider, it can’t suddenly change your agreement and raise your premiums because of your illness.

  Should you decide to change your level of coverage or you need to renew you policy though, in most cases you’ll have to inform the insurer of your cancer diagnosis. Unless, of course, you take out an over-50s policy that you can take out without any medical screening whatsoever.

• Do I have to tell my insurer if I tested positive for a cancer gene mutation on a genetic test?

  Currently, no, as the Association of British Insurers (ABI) and the government have both agreed to a ban on asking people for the results of predictive genetic tests for cancer.

  However, they can ask about your family history, which can raise rates if a parent or sibling died from cancer before they were old. Should you have tested negative for a gene mutation, you might want to tell the insurer to get lower rates.

• Can my insurer cancel my policy if I'm diagnosed with cancer?

  No, your insurer can’t suddenly cancel your policy if you’re diagnosed with cancer and you’ve been paying your premiums on time and were completely honest during your application process.

• What happens if I don't tell my insurer about my condition?

  It’s vital you disclose all medical information when applying for a life insurance policy. Leaving out any details could ultimately lead to the insurer refusing to pay out when you die or are terminally ill – even if you’ve been paying your premiums.