Having a backup plan to support your family in case of your demise is a calculative choice that should be promoted. Usually, life insurance becomes the lifeline for the dependents of a deceased person. The money the loved ones receive relieves them from financial stress during difficult times.

Life Insurance Policy: Purchasing Before and After a Cancer Diagnosis

Buying life insurance can be tricky if you have a terminal illness like cancer, which has an increased chance of causing fatality. Although insurance options are limited, it is still possible to obtain coverage. However, the availability and cost will heavily depend on several factors, including the type of cancer, stage, treatment plan, current health status, policy type, medical underwriting, and insurance provider underwriting criteria. Let’s look at two basic scenarios:

• Scenario 1: Existing Policyholders Diagnosed with Cancer

In this case, the diagnosis came later, and you are still liable to get your earlier agreed-upon amount based on the policy. The scenario is usually a no-brainer, and you can still feel secure for your family. However, a few insurance companies have separate policies varying on the time of diagnosis and the period that has passed since you bought the policy.

• Scenario 2: Purchasing Life Insurance After a Cancer Diagnosis

In case you have already been diagnosed with cancer and, in an attempt to safeguard your family’s life, you want to buy Life Insurance, then your options are quite limited. You are no longer eligible to apply for standard or full payout Term Insurance unless you are healed and are in 5 or more years in remission.

While you can’t buy whole or cheapest term insurance, there are a few options you can choose from, like Guaranteed Issue Life Insurance (based on death grading and is viable only after a few years), Group Life Insurance (given by employers to the whole company based on salary status, etc.), and Final Expense Life Insurance (money for last rites and funeral expenses).

Importance of Life Insurance

Securing a life plan is a wise decision in this unpredictable world. It is, in fact, a long-term investment that safeguards your loved ones. Life insurance comes in many types: some of the most popular include whole life insurance, term insurance, endowment plans, and Unit-Linked Insurance Plans (ULIPs).

If you’re seeking an affordable option, consider term insurance. It offers comprehensive coverage with premiums that fit your budget. Additionally, you can add a critical illness rider, which provides financial support if you’re diagnosed with a serious illness.

When buying a term plan, a term insurance premium calculator can help you evaluate available options and estimate the premiums that best meet your needs. Always consider your annual income, outstanding debts, and future financial goals while determining your coverage amount. A common standard practice is to have a limit of 10 to 15 times your yearly income. 

Conclusion

Securing a life insurance plan while young and healthy allows you to obtain comprehensive coverage at affordable premiums. Key factors that influence your premiums include age, health status, occupation, term length, desired coverage amount, and gender.

However, cancer is an emotionally, physically and financially draining life-threatening illness. While treatment is ongoing, it’s crucial to have a solid financial backup for your family’s well-being in case you don’t survive. If term insurance and whole life insurance are no longer options, there are options like guaranteed issue life insurance or final expense insurance that you can consider. It is also advisable to consult with an insurance advisor or agent to explore your specific options and understand the terms of any policy you consider.