7 Helpful Pointers for Buying Life Insurance After Cancer
The recent facts by the American Cancer Society have put forth that for the year 2016 an estimated 1,685,210 cancer cases will be diagnosed. I have seen first hand the emotions that a patient will go through after being tested positively for a cancer diagnosis. Depression, anxiety about the outcome, fear of the future and the realization of the possibility of dying must solicit empathy from family members, friends, and colleagues. However, there is optimism for the cancer patient in our day. Taking charge of one’s destiny despite testing positive resurrects hope and most times a second chance at life, for the patient. Since you are now in the mindset to dictate reasonable and achievable personal goals that signify your determination to conquer this disease, this article will give you helpful pointers for buying life insurance after cancer.
1) Look At The Various Types Of Life Insurance
Knowing the different types of insurance, you will be able to choose best the kind of policy that will best fit your family’s needs. The two categories that most people purchase are term and permanent. Term insurance will protect you for a certain time period, and coverage will be gone once that time period has lapsed. Permanent insurance will cover you for your entire lifetime so as long as you continue paying the premiums. Another approach is to look into your employer’s group life insurance plan, if they offer this benefit. Since this is a blanket coverage for all the employees in the organization, your medical history will not be taken into account. Nonetheless, if you were to leave your job, please be aware that this group policy will terminate, and you will be left without any coverage. Also, if you are a member of any trade association look to see if they offer any group life insurance.
2) Be Honest With The Insurance Company
Life insurance companies will always rely on the information provided by the cancer applicant. It is vital for one to ensure that the most consistent, accurate and updated medical facts are delivered to the insurance company. If you are opting for a fully medically underwritten policy, collect all of your medical records before the process of purchasing a policy. Obtain your first pathology report, all medical records and the course of action for your treatments.
3) Patience Is Imperative
Obtaining approval for a cancer survivor will often take time. Life insurance companies prefer applicants that are healthy with an active lifestyle. After all, they collect more premiums the longer you live. Depending on the type of cancer you have had, companies generally require a waiting period after your last treatment. The insurance company needs to evaluate their risk level for an applicant meticulously with a history of cancer, before approving a new policy. They will be analyzing the type of cancer you were diagnosed with, the length of your treatment and the how long time has passed since your health stabilized.
4) You Need to Compare
You might be tempted to purchase the first life insurance policy you get your hands on. Taking that into consideration, if that first company was able to approve you, possibly others might insure you also with maybe more affordable premiums. Each insurer has their own set of guidelines they adhere to. Some insurance carriers may be more or less stringent with their underwriting in regards to a particular type of cancer. This is where an independent agent is able to assist you in obtaining coverage since we have access to multiple carriers to choose from, and we are committed to being your advocate, even if you have been turned down in the past.
5) Get Ready For Higher Premiums
Since you survived a life-threatening illness, you will be categorized as high risk. Consequently, you will be paying a higher premium than an applicant that is healthy. The more time has passed since your last treatment, the better at being approved with a more affordable premium.
6) Convert Your Current Term Policy
If you are shopping for a policy, because your current term policy will be expiring soon, verify if it has a conversion feature. If it does have this feature, you will be able to convert it to a permanent policy without undergoing a health history or medical exam. Since the new premium will be based on a permanent policy and your current age, your cost will be higher than the previously issued policy.
7) Do Not Become Discouraged
It may seem like a daunting task to obtain a policy. It just takes additional effort and dedication. Due to the increase in survival rates, early detection and the advancements in the treatment of cancer diseases, insurance companies are becoming more favorable in placing policies for cancer survivors.
If You Currently Have Cancer:
You will be able to obtain a guaranteed issue life insurance policy. This type of policy does not require you to take a medical exam or provide medical records and for this reason, medical underwriting will not be mandatory. You just pay your premiums, and you are automatically approved. The disadvantages of having a guaranteed issue policy are that your premium will be more costly than a traditionally underwritten policy, and you will have a lower death benefit. Furthermore, the policy is typically graded. This means that the insurance company will pay the full death benefit after you have held the policy for a certain period of time, which will be detailed in the policy. It’s far better to have a reduced death benefit than having absolutely no life insurance coverage at all so that final expenses can be paid without putting a financial hardship on your family. Additionally, group life insurance policy, which was mentioned previously is another alternative.
The Next Step
It’s important to continue to place your health as a top priority. Continue to follow your doctor’s protocol for treatment, exercise regularly and eat a healthy and balanced diet. This plan of action not only does your body good but it also certainly puts some gold stars on your policy application. It is my hope that these 7 helpful pointers for buying life insurance after cancer was able to encourage you and that there is a favorable policy that fits your needs. If you have any questions, please email me at Terumi@tdlinsurancegroup.com or call my office at 800-876-9016.