While standard life insurance for someone diagnosed with cancer is usually not possible under most circumstances, there are other types of policies that allow cancer patients to acquire this form of financial protection.
Why is Standard Insurance Not Granted to Cancer Patients?
It may not seem fair that those who are suffering from a serious illness cannot enjoy the protection of standard life insurance policies.
However, this does fail to consider how insurance is supposed to work. Insurance companies make a profit by providing policies to those who are in good health, but want financial protection for their families in case something happens to them. Since a relatively small percentage of people die of accidents, unexpected illness, or similar event, most insurance companies will gladly provide policies for healthy individuals.
However, those who are suffering from life-threatening illnesses represent a much higher risk to the insurance company. If they insure too many people who pass away, the company goes bankrupt, and many who purchased policies will not have them honored.
When Insurance Companies Cover Cancer Patients
Those who have cancer, even in minor cases carry a risk that it will spread and eventually cause their death. However, even those with cancer can be covered by non-standard forms of life insurance. This is a type of policy that takes into account cancer and adjusts the rates and conditions so that it does provide coverage.
This kind of coverage has become more popular in recent years due in large part to the growing survival rate among cancer patients. While some forms such as pancreatic cancer are still quite deadly, many other types of cancer have become more treatable, and the survival rate has been growing steadily over the past few decades thanks to new treatments and medications.
What Type of Life Insurance is Available?
There is one type of life insurance that will cover cancer patients, even those who may have been deemed terminal.
Guaranteed: This form of life insurance is guaranteed for anyone no matter their current state. Guaranteed life insurance for cancer patients is the most expensive and often comes with graded benefits which mean that if the person should pass away within a set period, the beneficiary will only receive the premiums that have been paid and the interest which sometimes reaches 20% to 30% or more depending on the company.
With this policy, there is life insurance for terminally ill patients. Guaranteed policies do not require a medical exam and no medical questions. No one can be turned down for this type of life insurance.
However, it is also the most expensive and the benefit rate itself may top out at $50,000 for many companies due to the inherent risks involved.
For those who suffer from cancer, there is the possibility of getting a life insurance policy that will cover potential funeral expenses, unpaid debt, and even leaving behind a small legacy for loved ones. A guaranteed life insurance policy may be the answer you need.