CHICAGO, Nov. 24, 2021 (GLOBE NEWSWIRE) – For many cancer patients, the idea of ââlife insurance may seem out of reach. Fortunately, there are life insurance options for those battling cancer. While insurers generally seek to insure people with low risk health conditions, some policies may be available for cancer patients. Here’s what to know about life insurance for cancer patients and how to compare plans.
Life insurance eligibility factors
When purchasing a life insurance policy, the following factors can influence eligibility and rates:
- Age: Younger applicants have more life ahead of them and generally benefit from lower rates, all other factors being equal.
- Kind: Since women tend to live longer than men, women may be offered better rates, all other factors being equal.
- Health: Life insurance companies base their rates on lifestyle choices such as tobacco use and examine the risk associated with a given occupation or hobby. Disclosing a cancer diagnosis may raise other questions that could affect policy options and rates.
For cancer patients, insurers will likely be interested in:
- Family history: Cancer in the immediate family and those with a genetic predisposition may increase the rates. Insurers are also interested in the age of a family member’s diagnosis and may view the diagnosis more favorably at an older age.
- Type of cancer: Certain types of cancer, such as melanoma, are more common and have higher survival rates, making them more insurable than other more serious cancers.
- Cancer stage: Diagnoses of terminal cancer will be more difficult to make.
- If the cancer has spread (metastasized): People with cancer that has spread to other areas may be more difficult to insure.
- The treatment plan: If the treatment plan works and the cancer responds to treatment, there may be a greater chance of getting a policy approved.
- Cancer status: Those who have been in remission and without treatment for several years tend to benefit from more favorable conditions and insurance rates. A person currently in treatment can take advantage of waiting a few years to obtain a better rate and save what they could have paid in premiums during that period.
It may be best to give the life insurance company as much information as possible to make an informed decision.
Types of life insurance plans for cancer patients
The following two types of life insurance are often offered to people diagnosed with cancer:
- Guaranteed Issue Life InsuranceAlso known as burial cover, a smaller guaranteed issue life insurance policy will be enough to cover funeral costs and maybe even leave a small inheritance. The main advantages of a guaranteed issue policy are that no medical examination is required and that it is a whole life insurance policy, which means lifetime coverage. But guaranteed issue life insurance has some drawbacks, such as the death benefit limit to around $ 25,000 and the fact that premiums can be expensive.
- Group life coverage: Group plans are generally available from employers and often insure members up to a fixed amount ($ 50,000 is common) without a medical examination. Also, since employers can cover the entire premium, this option tends to be inexpensive or free for the policyholder.
How to Compare Life Insurance Plans
When considering multiple life insurance plans, cancer patients should consider:
- Company reputation: Look for a reputable insurance company with good customer reviews and a proven track record in insuring cancer patients.
- How much money is needed: If funeral expenses are the only concern, a guaranteed issue life insurance policy may be the right solution. But if the cancer patient has debts to cover, such as a mortgage, they may seek out a larger policy that will have a significant impact on debt repayment.
- Budget for policy premiums: Even policies that offer a small death benefit could cost a pretty penny each month. It is important to evaluate the policies available based on what the insured can afford. That way the policy will be a benefit that gives peace of mind, not something that adds to the financial burden.
The bottom line
Certain types of life insurance plans may be an option for cancer patients. When considering a guaranteed issue or group life insurance plan, it’s important to find a reputable lender and choose a policy based on the coverage the policyholder needs. And while the premiums for cancer patients may be higher, it might be worth it for those who wish to leave financial support to their loved ones.
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