How Does Cancer Affect Your Insurance Policies?

​Whether you have a health insurance policy or a car insurance policy, if you suddenly find you have been diagnosed with cancer, you need to let your insurer know.
 
The policies could need to be updated. In a worst-case scenario, your insurance policies could become invalid if you fail to inform your insurer about your diagnosis and the treatments you are having. So, always be upfront with your insurance companies to ensure you maintain coverage.
 
The most important insurance policy to consider is your life insurance. Let us take a closer look at how having cancer can affect getting a life insurance policy.

​Getting a Life Insurance Policy When You Have Cancer

According to the National Cancer Institute, more than 600,000 people died from cancer in the United States in 2020.

The most common cancers include breast cancer, lung cancer, prostate cancer, colon and rectum cancer, and melanoma. But there are, unfortunately, lots more.

There are even deadly cancers caused by the toxic chemicals and contaminants of the smoke and dust that first responders, residents, and others, were exposed to in the aftermath of the twin towers terrorist attack on 9/11.

As sad as that is, at least those who have developed 9/11 cancer types and other 9/11-related illnesses can now gain support from the World Trade Center Health Program and the September 11th Victim Compensation Fund, which, together, help to provide medical coverage and pay compensation to people with 9/11-related health conditions.

Whether you have breast cancer, melanoma, or a 9/11-related cancer, your illness could affect your ability to get insurance coverage.

If you do not purchase life insurance until your health gets worse, it will be very challenging to get coverage.

Unfortunately, the sad truth is if you have been diagnosed with cancer and are receiving treatment, you probably will not qualify for a traditional life insurance policy.

However, it is not all bad news. You could qualify for a guaranteed issue life insurance policy. But bear in mind that the policy can be costly and the coverage amounts are limited, usually to a maximum of $25,000.

If your primary reason for getting life insurance when you have been diagnosed with cancer is to cover medical bills and potential funeral expenses, getting a guaranteed issue life insurance policy will be suitable.

Of course, hopefully, treatment will work and you will become cancer-free. If you become healthy again, you could apply for a permanent life insurance policy.

Getting a Life Insurance Policy After Cancer

Typically, insurers that provide life insurance want to know that you have been free of cancer for a specific number of years before they will consider insuring you.

The type of cancer you had can determine the number of years because some cancers are less life-threatening than others.

Generally, people who have had less serious forms of cancer need to wait between one and three years after they have been cleared of the cancer before they can qualify for a life insurance policy.

For people who have recovered from more severe types of cancer, they may have to wait for as long as five years before they are able to qualify.

Insurance Rates Are Typically Higher for People Who Have Recovered from Cancer

Sadly, even if you have been cancer-free for years, it is very likely that you will not qualify for the best insurance rate.

A life insurance policy will probably cost more for people who have had cancer in the past because the insurance company deems you to be a higher risk. The insurer will check various records, like your medical history and prescription drug history, and take things like your gender and age into account, in order to determine your risk and your insurance rate.