Cancer will claim the lives of 609,640 people in the U.S. this year. Considering the number of families affected by the deadly disease, it’s not surprising that one of the most commonly asked questions of our agency is “Does life insurance cover cancer?”
Life insurance plans typically cover accidental deaths and natural causes. Because cancer is considered a natural cause, it is generally covered by life insurance. If you’re a life insurance policy holder and become diagnosed with terminal cancer, your insurance provider should pay out your death benefits to your beneficiary.
However, if you attempt to get life insurance coverage when you have cancer, most providers will stipulate that they will not pay out the benefit if you die from the cancer. It’s important to be honest with your provider because if it comes out that you have been medically treated for cancer-related symptom, have a history of cancer in your family or have had a previous diagnosis yourself, your provider may not pay out the benefit.
Can Your Get Life Insurance If You’ve Had Cancer?
It is possible to gain life insurance coverage after you’ve had cancer, but the policy type you’ll qualify for will depend on the type of cancer, severity of the disease, and the date of your diagnosis.
Life insurance is rarely top of mind when you’re young and healthy, but it is absolutely the best time to get coverage. Your rates will be inexpensive and you likely have a clean bill of health, making you an optimal candidate. It will be harder (if possible at all) to get coverage after being diagnosed with a severe illness. Even if you are offered coverage, the provider may include an exclusion related to your illness.
What Is Serious Illness Coverage?
Serious illness coverage differs from life insurance in that you can use the benefits while you’re still living. If you are diagnosed with a specific illness, like cancer, you can use the benefit cash to cover medical bills, day-to-day expenses, or existing debt. It’s a good idea to consider life insurance as well as serious illness so that you can have money to pay off incoming medical bills and your beneficiaries can also receive money.
It’s possible you may be able to borrow against your life insurance policy to receive living benefits, but you’ll need to speak with your provider to determine if it’s possible with you specific policy.
In 2018, an estimated 1,735,350 new cases of cancer will be diagnosed in the United States. Secure your family’s financial future with serious illness coverage as well as life insurance and be prepared for the unexpected. If you have questions about life insurance or how you can best be prepared for a serious illness like cancer, compare pricing and different policies with our team.