Opportunities For Life Insurance For Cancer Patients Increase
It’s difficult and expensive to buy life insurance after a cancer diagnosis, but you should be able to do so. However, you’ll need to consider whether the price and coverage options are appropriate for your budget. For the first several years, most cancer patients are only eligible for assured issue policies with limited coverage and payouts. Cancer survivors who have been out of treatment for two to five years and are in remission are more likely to qualify for a typical term or permanent life insurance policy. However, premiums will be higher, and coverage will be denied for a certain type of cancer.
What is term insurance?
A term plan is a pure life insurance policy that protects you for a set period of time. If the policyholder dies during the period, the money promised is paid to the nominee. Certain insurance companies have begun to provide policyholders maturity benefits (i.e., the return of premiums). When compared to other types of insurance plans, term plans often offer a bigger sum assured at a lesser price.
Life insurance for cancer survivors
Cancer survivors pay a higher premium for life insurance, but if you’re in remission and generally healthy, you can usually get coverage. Certain types of cancer may prevent you from getting a policy, but if you’ve been in remission for several years, you should be able to get term or permanent life insurance. If you can’t prove that your cancer is in remission, or if you have another medical condition, such as diabetes, you can get highly expensive estimates or be unable to obtain insurance at all.
Does life insurance cover cancer?
Cancer is covered by both term and permanent life insurance policies. Your beneficiaries will get the death benefit if you die of cancer within the coverage term. Accidental death and dismemberment policies are the only ones that don’t cover cancer because they only payout if you’re hurt or die as a result of an accident. It’s critical to be honest with your insurer when getting cancer life insurance, whether you’re a survivor or in treatment. Though life insurance covers cancer, your beneficiary’s claim may be denied if the insurer can show that you intentionally misrepresented your condition or were fraudulent in your application. A contestability period usually occurs within the first two years of a policy. This implies that if the information you gave was false, the insurer can deny your claim. Giving a detailed and truthful history can help ensure that your beneficiaries receive the funds you intended.
How to choose a term insurance policy for cancer patients?
If someone gets cancer, having a comprehensive term insurance plan with critical illness coverage would be quite beneficial. It’s a good idea to get a term insurance policy with cancer coverage if you have a family history of cancer. However, with some policies, a waiting period of a particular amount of time may be required before coverage is provided. If the policyholder dies before the waiting time is completed, the nominee is usually only entitled to the amount of premiums paid thus far.
- Insurance that covers most types of cancer at various stages, whether early or advanced, should be chosen.
- Radiation therapy, hospitalisation, chemotherapy, medical treatment, and other cash-based expenses should be reimbursed.
- The most common cancers, such as lung cancer, breast cancer, and ovarian cancer, should all be covered.
- Given the rise in medical inflation, it is prudent to choose a plan that provides a substantial amount of coverage. The plan in issue should provide a substantial level of coverage, ranging between Rs.15 lakhs and Rs.50 lakhs.
- Choose a policy that can be renewed or that covers you when you reach the age of 65.
- Waiver benefits are also available in some plans. Keep an eye out for these options, which in some cases waive future premiums while keeping the coverage in place.
- Some plans also include a complimentary cancer screening.
- Subject to changing tax rules, you can normally claim tax benefits under Section 80D for such insurance.
Buying life insurance after cancer
Along with being fit, the amount of time since a cancer diagnosis is an important factor to consider when acquiring life insurance. Depending on the insurer and the type and stage of cancer, you may have to wait two to five years after your last treatment to secure life insurance approval. You may still be considered a patient in active treatment if your cancer is in remission but you have more than one monitoring appointment per year. When you apply for life insurance after being diagnosed with cancer, the insurer will ask you a series of questions about your diagnosis and treatment, like:
- When did you get your diagnosis?
- If you have a family history of cancer, tell us about it.
- What type and stage of cancer did you have, and did it spread?
- What treatments did you have, when did they start, and when did they end?
- If you’re in remission, how long have you been?
- What was the location of your cancer, its size, and whether it had spread to your lymph nodes?
- Have you experienced any relapses?
- Is there any medication you’re taking right now?
Ex-cancer patients will have a much easier time getting life insurance if they can answer all of these questions thoroughly, with medical evidence to back them up. You may also need to show that you’re sticking to any treatment plans that have been prescribed to you, including medications and follow-up appointments.