A guide to life insurance for cancer patients and cancer survivors

Information courtesy of USAA Life Insurance Company and USAA Life Insurance Company of New York.

Nearly everyone has been affected by cancer, whether you've been treated yourself or know someone who has. In 2023 alone, it's estimated that nearly 2 million people will receive a new cancer diagnosis. Cancer is also the second leading cause of death in the United States.

In addition to its physical impact, cancer has a financial impact. Treatment can be expensive, you could lose money if you miss work, and you may incur increased expenses like child care. Another financial implication: A cancer diagnosis can affect your ability to get life insurance.

The potential silver lining is that, in some cases, you'll still be able to qualify. However, the process can be more complicated and may require more effort and patience than for someone without a history of cancer.

Read on for more information on how cancer patients and survivors can buy life insurance.

Does life insurance cover cancer?

If you already have life insurance, it will likely still pay out if you die after a cancer diagnosis. But it's important to know that not all policies are designed this way. For example, an accidental death and dismemberment policy may not pay out for death caused by cancer.

Often, the types of life insurance for cancer patients and survivors depends on when you were diagnosed, the current stage of your cancer, your treatment plan and whether you're in remission. These factors can also affect your premiums.

Can you get life insurance if you‘ve been diagnosed with cancer?

When you apply for life insurance, the insurer will likely ask you about your medical history, including cancer. Keep in mind that there are policies that don't require a medical exam, but they come with higher premiums and lower death benefits.

The insurance company will use your medical exam or questionnaire to assess their risk before making a decision to insure you. If you're in the process of being treated for cancer, there's a risk your application will be rejected, or you'll have to pay significantly higher premiums.

Life insurance for cancer survivors

If your cancer's in remission — or in certain cases, been surgically removed — you may be able to get life insurance. But other health and lifestyle considerations may affect the underwriting process.

After you've been in remission, you'll likely have many more options. For example, a company may determine that you can be eligible for term life insurance or permanent life insurance after being cancer-free for a specified period.

Often, that timeframe depends on the type of cancer. For some types, insurance companies might set the bar at one, five, or even 10 years. Some skin cancer, as an example, may not have a remission period at all.

The main point is to do your research before assuming you're ineligible.

What if you have a family history of cancer?

This won't prevent you from buying life insurance. When the insurance company reviews your medical history, it also will review your family history. The insurer looks at who's been diagnosed with cancer, their age when diagnosed and their survival rate.

A pattern of cancer might lead to a premium increase, but it shouldn't affect your ability to get life insurance.

Life insurance options for cancer patients

People with a recent cancer diagnosis do have options when it comes to purchasing life insurance. Weigh the pros and cons of these insurance types as you look for a policy that best fits your needs.

No medical exam life insurance

If you have trouble getting insurance because of health issues, no medical exam policies might be right for you. Consider these two coverage options.

• Guaranteed issue life insurance. These policies are available to people with pre-existing medical conditions, including cancer. There are no medical exams or health questions, and acceptance is guaranteed. However, these policies tend to be more expensive, offer lower coverage limits and have certain age restrictions.
• Simplified issue life insurance. You'll be required to answer a few health questions, but there's no medical exam. This type of policy may be an option if you had cancer several years ago and are now cancer-free.

Medical exam life insurance

Term and permanent life insurance are fully underwritten policies. They're typically best for people in good health, so you're more likely to get insurance if you're in remission. If you're currently undergoing cancer treatment, you may not qualify.

• Level term life insurance is a type of term life insurance that provides a level premium and a guaranteed death benefit for a specified duration. Your premium's based on a medical exam, as well as your age, lifestyle and other factors.
• Whole life insurance is permanent life insurance that's meant to last a lifetime, and most policies include a cash value component. But you'll likely pay higher premiums based on your medical exam and other risk factors.

Tips for getting life insurance after cancer

If you've had cancer and are looking for life insurance, keep these tips in mind.

1. Work with an experienced life insurance agent who can help you navigate the application process and find the best policy for your needs.
2. Be prepared to provide detailed information about your cancer diagnosis and treatment, including medical records and test results.
3. Consider working with a well-known insurer that has experience underwriting life insurance for cancer survivors.
4. Be honest about your medical history and cancer diagnosis. Failing to disclose information could result in your policy being canceled or denied.