Life Insurance After Cancer

Today, after definitive cancer treatment, a normal life expectancy is common thanks to advances in medical therapy. Depending on the type of cancer, favorable life insurance underwriting is possible.

When applying for life insurance after a diagnosis of cancer the insurance company may postpone the application. In other words, the applicant poses too high of a risk at the time of application, but the insurer sees a time in the future that the applicant may be accepted for coverage. Postponement is better than denial. The life insurance company simply wants to see how the applicant responds to therapy and better assess the degree of treatment.

The postponement is typically a certain number of years, with the clock starting after treatment is complete, not at time of diagnosis. Definitive treatment for the cancer must be involved, otherwise the application will be declined. (Definitive treatment is the best treatment plan chosen after considering several options.)

Once accepted for coverage the life insurance company will charge a higher rate until the risk of recurrence equates to standard mortality. Once the policyholder reaches standard mortality the extra premium is no longer charged.

The risk of recurrence with many cancers is early in the process. Because of this, applicants with these types of cancers are typically insured earlier (shorter postponement period) and charged an extra premium for a shorter period of time. Same goes for those with cancers that can be completely removed.

Breast cancer can rear its ugly head even after complete and radical treatment. Because of this the life insurance company will likely charge an extra premium for quite a long time, and possibly for the life of the policy.

Not all cancers of a certain type are treated equally by the insurer. As an example, the insurance company does not treat all bladder cancer applicants the same. Cancer cell type is important because some are more aggressive than others. The more the cancer cells look like those of the body organ involved the better they respond to treatment.

Some malignancies are not curable but do not dramatically shorten life expectancy. Leukemia, types of non-Hodgkin’s lymphoma, and a variety of skin diseases may eventually metastasize to organs, but many experience very extended periods of survival. These cases must be looked at individually by the insurer, of course, and applicants may be subject to a life-long premium increase over standard rates.

Applicants that have suffered a second cancer are almost always insured at a higher rating.

Insuring those with cancer rests on confirmation of definitive treatment and no recurrence. Documented regular check-ups is also very important, otherwise the possibility of issuing a life insurance policy is rarely possible.