Can I Buy Life Insurance If I Have Cancer?
If you have been diagnosed with cancer and need to buy life insurance, rest assured that you still have options. While this is most certainly a tough and trying time, planning for your loved ones as well as how you’ll pay for end-of-life costs is a reality we all face, cancer diagnosis or not.
Life insurance is a great way to plan for funeral expenses (which usually costs $10,000 or more), as well as passing on funds to your children or other beneficiaries. It can also cover any debts you may have if you still have a mortgage, credit card debt, or other outstanding loans.
While purchasing life insurance is recommended as soon as you’re married or have children, a serious medical condition can often nudge you to make the purchase.
If you have a need for life insurance and have been diagnosed with any kind of cancer, you can still purchase a policy.
Call 217-423-8000 for a free life insurance consultation, or visit our Appointment Scheduling page
Guaranteed Issue (GI) Life Insurance Options
While you won’t be eligible for life insurance that requires medical underwriting or testing, there are options available that are called Guaranteed Issue.
Guaranteed Issue (GI) life insurance policies can be purchased without the need to answer any health questions. No matter how healthy or unhealthy you may be, you can still qualify and apply for a GI life insurance policy.
It’s generally as simple as filling out a short application that only asks for your basic contact information and who you wish your beneficiary or beneficiaries to be. In our experience, it only takes about 15 minutes to apply!
Life Insurance Policies You Can Buy If You Have Cancer
Here in Illinois, the most popular life insurance options for those with a cancer diagnosis are from AIG and Gerber.
With both companies, you cannot be turned down for a life insurance policy regardless of your health, including a cancer diagnosis. You also will not have to do a medical exam – no blood tests, blood pressure checks, labs, or anything else.
In addition, life insurance premiums will never increase, and the benefits will never decrease. Even if you have a Guaranteed Issue policy and you’ve been diagnosed with cancer, you still will never experience a rate increase.
Gerber Guaranteed Issue Life Insurance
Gerber Life Insurance has been providing life insurance for over 50 years – they are a name you can trust. Gerber Life Insurance is a financially separate affiliate of the Gerber Products Company, or “The Baby Food People.”
Gerber Life has an A (Excellent) Rating through A.M. Best, which is a rating of their financial stability and ability to meet the demands of policyholder’s claims.
We firmly stand behind Gerber as a great life insurance option for those who cannot pass health questions or medical underwriting.
With Gerber’s life insurance option, you can purchase it between the ages of 50-80, and you can choose a death benefit between $5,000 and $25,000.
The way that Gerber’s death benefit works for Guaranteed Issue policies is that there is a two-year graded death benefit.
This is very common for Guaranteed Issue life insurance policies, and it just means that if you were to die within the first two years, your beneficiaries would receive a return of premium instead of the full death benefit.
With Gerber, if you die within the first 2 years for any reason other than accident, the payout would be all the premiums you’ve paid + 10%.
Under all other circumstances, such as dying within the first 2 years due to accidental causes or dying for any reason after the first 2 years, you would be paid the full death benefit.
AIG Guaranteed Issue Life Insurance
AIG has been in the insurance industry for over a century and serves over 18 million customers across America. AIG is actually the world’s largest life insurance organization, and they often tend to have some of the best rates on the market.
We love AIG and their Guaranteed Issue life insurance option, which is a wonderful solution if you have a cancer diagnosis and cannot apply for traditional life insurance.
AIG’s GI life insurance is available if you are between the ages of 50-85, and like Gerber, you can choose a death benefit of between $5,000 and $25,000.
AIG also has the same two-year graded death benefit as Gerber. If you were to die within the first 2 years of owning your policy, and it was not an accidental death, your beneficiaries would receive 110% of the premiums you have paid so far.
Beginning in year 3, or if you die at any point and it is an accidental death, your beneficiaries would receive the full face amount of your policy. AIG also states that if you commit suicide, your beneficiaries would be refunded your premiums.
Alternative Insurance Options for Those With Cancer
If you have cancer and are curious about other types of insurance, the general rule of thumb is that you won’t be able to apply due to health questions.
However, Medicare Advantage plans as well as the Medicare Medical Savings Account (MSA) do not require you to pass health questions. You could choose either of these options if you’re looking for a low-premium alternative to traditional Medicare with a Medigap plan.
As far as Cancer Insurance goes, you can still qualify as long as you’ve been cancer-free for at least 5 years. That means that if you have recovered from cancer and 5 years has passed, you can buy cancer insurance!
If you have any additional questions about buying life insurance, please get in touch with our team. No matter your situation or budget, we are bound to find an option that fits your needs.
Remember that we have access to dozens of insurance carriers, and our services are completely free. You will pay the same buying through us as you would by purchasing directly from the carrier.
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