Buying Life Insurance After Being Diagnosed With Cancer
Friday, May 30, 2014
If you are currently dealing with cancer or have dealt with
cancer in the past, one of the questions that you may be wondering
is, can I get life insurance?
This is an extremely common question, yet it is one that is very
difficult to answer. This is because there are so many different
types and severities of diagnoses. Finding a life insurance quote
after a cancer diagnosis can be difficult but not impossible. Your
chances of receiving life insurance will largely depend on if you
are currently undergoing treatment or how long ago your treatment
was completed. Your chances also depend greatly on the history,
type, stage, treatment and grade of the cancer.
Life insurance companies will ultimately look at the curability,
severity and treatment of your cancer. Certain types of cancer are
considered to be very low risk and a history of these may not
affect premiums or insurance at all. History of other types of
higher risk cancers may receive a substandard rating (meaning you
might pay more) or possibly even a decline.
One option for those currently undergoing treatment or with a
history of severe cancer is a guaranteed issue life insurance
policy. Guaranteed life insurance is a type of life insurance in
which the applicant will not undergo any medical underwriting.
Because of this lack of underwriting, this means that anyone, even
those currently undergoing treatment, will be able to get life
insurance. These policies do not come without any drawbacks. Since
the insurance company is not asking any medical questions, they are
taking on a substantially higher risk and therefore they often
issue these at higher premiums and for lower face amounts. That
being said, they are often an excellent option for those with no
other means of obtaining life insurance.
Another strategy for obtaining life insurance for those who
normally cannot is to get it through your employer. Some employers
do offer life insurance to their employees. These plans can be
offered to employees in terms of flat amounts (such as $50,000 or
$100,000) or they can be offered as a multiple of your current
salary (such as 1x or 2x current salary). Often employee life
insurance will not have underwriting questions and will issue it to
every employee that chooses to sign up. This makes it an excellent
option to consider when shopping for life insurance. One of the
drawbacks of this type of insurance is that the coverage often
stops when the employee stops working for the employer. This can
make it difficult for those who stop working because of illness.
Although this is not always the case, it is something that everyone
should consider when signing up for life insurance through an
Life insurance is a very important aspect of one's overall
financial plan. A properly designed life insurance policy can help
with issues such as end of life expenses, supplemental income to
family members, estate planning, debt repayment, charitable giving,
college planning and many more.
Mike Dreyer, Dreyer and Associates,