Finding the right life insurance company to cover cancer should be based on the company’s financial stability and product flexibility.
The Best Life Insurance Companies for Cancer Patients (2024)
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The best life insurance companies for cancer are not only the ones that are most likely to pay a death claim but also those willing to accept various levels of risk during the underwriting process. Our top recommendation is Ethos Life Insurance, although the right life insurance company may vary depending on your unique coverage needs and health status.
We at the MarketWatch Guides team have researched the best life insurance companies and rated them according to our comprehensive methodology. Regardless of the life insurance company you may choose, we always advise comparing quotes to ensure you get the best coverage and most affordable life insurance quotes to review.
Top 6 Life Insurance Companies When Diagnosed With Cancer
Cancer is a dynamic disease that requires a lot of continuously updated information for insurance companies to review to determine coverage eligibility. Below are six companies to consider for life insurance for cancer.
- Ethos: Our top pick
- TruStage: Our pick for whole life coverage
- Bestow: Our pick for online term policies
- Fidelity: Our pick for accidental death coverage
- Nationwide: Our pick for bundling insurance
- Mutual of Omaha: Our pick for accelerated death benefits
Compare the Best Life Insurance Companies for a Cancer Patient
Compare the top life insurance companies for cancer patients in the chart below.
Company | Our Pick for | AM Best Rating | Accepts Credit Cards | Term | Whole | Universal | Guaranteed Issue |
---|---|---|---|---|---|---|---|
Nationwide | Bundles | A+ | No | ✓ | ✓ | ✓ | ✓ |
Mutual of Omaha | Accelerated Benefits | A+ | No | ✓ | ✓ | ✓ | ✓ |
State Farm | Customer Satisfaction | A+ | No | ✓ | ✓ | ✓ | ✓ |
Lemonade | Application Process | A+ | No | ✓ | – | – | – |
Fidelity | Accidental Death | A- | No | ✓ | ✓ | – | ✓ |
Transamerica | Claims Speed | A | Yes, but limited types of policies | ✓ | ✓ | ✓ | – |
Types of Life Insurance Best Suited for Cancer Diagnosis
There are two primary types of life insurance: term life and permanent life. They apply differently to scenarios where the insured has cancer.
- Permanent: This is usually whole life insurance, which is the foundation for guaranteed issue policies. It’s offered by our top three companies listed below.
- Term: Term life is mostly for people with a history of cancer or specific and treatable early-stage cancers, such as basal or squamous cell.
Top 3 Company Choices
Based on product availability and underwriting flexibility, the following three are our top life insurance choices for people with cancer:
- Nationwide
- Mutual of Omaha
- State Farm
Factors That Affect the Cost of Life Insurance for Cancer Patients
When determining the cost of life insurance for cancer patients, life insurance companies consider a handful of basic facts that directly impact the monthly premium and eligibility for coverage.
Here are some key factors that impact price.
- Type of cancer and stage: Insurers classify cancers by the risk they are taking, which is a function of how aggressive the cancer is and the severity of the disease at the time of coverage. For example, early-stage breast cancer vs. early-stage pancreatic cancer gets weighed differently because of the drastic differences associated with treatment success, even in early stages. Breast cancer is more treatable than pancreatic cancer, according to the Institute of Cancer Research.
- Treatment history: Chemotherapy, radiation treatment, surgery and immunotherapy have different durations, and cancers respond to them differently, too. Positive responses to treatment may result in lower premiums than cases where treatment is less effective. Insurers access treatment data through a HIPAA-compliant release of medical records during the application process.
- Diagnosis duration: People in remission for specific periods may be eligible for lower premiums compared to those recently diagnosed or undergoing active treatment.
- Prognosis and survival rate: Insurers weigh statistical data about survival rates and long-term outcomes for cancer types.
- Specific factors: Factors isolated to particular types of cancer impact costs and eligibility. For example, a Gleason score is a specific measure for individuals with prostate cancer. Underwriters will consider all the information listed above and any factors specific to the type of cancer in question before any rates are offered.
- Other factors: Besides a general cancer diagnosis, insurers also consider age, overall health, family medical history and tobacco usage when assessing the risk and determining an offer within a rate class.
Premiums can vary significantly by insurer based on underwriting guidelines and risk tolerances. To get an accurate feel for true costs, get quotes from multiple insurers or consult an insurance professional who can help you navigate the process.
Is Life Insurance Worth It If You’ve Been Diagnosed With Cancer?
Whether life insurance is worth paying for if you’ve been diagnosed with cancer depends on the type and stage of cancer, your prognosis, individual circumstances and the specific terms and conditions of the life insurance policy. Here are a few scenarios to consider.
Terminal cancer: There is only one type of policy someone may qualify for after a terminal cancer diagnosis: guaranteed issue life insurance. Also called guaranteed acceptance insurance, these policies often don’t have health questions for approval, have lower coverage limits such as $50,000 and have multi-year waiting periods before a full benefit is paid to the beneficiary.
The decision to take this type of coverage should be based on the policy’s cash outlay and the terminal cancer prognosis. Sometimes, the patient may be better off saving the premium costs and not buying a policy.
Early-stage cancer: Early-stage cancers with a favorable prognosis may still be possible to obtain traditional life insurance coverage. However, the premiums will be higher than those without a cancer diagnosis buying coverage.
In remission: Some life insurance companies may offer coverage if a cancer is deemed in remission. Cancer survivors must provide comprehensive medical records and documentation to support their remission status. Shopping around and consulting with multiple insurers can help you find the best policy options if you are cancer-free.
Is it worth getting life insurance if you’ve been diagnosed with cancer? It is worth considering your options and working with a professional to help think through the various scenarios that affect someone emotionally and financially.
The Bottom Line
When searching for a life insurance company that will cover cancer, you need to understand the types of policies they offer. Depending on the type of cancer, the only available options may be a guaranteed acceptance policy, which historically has a lower coverage limit. You may wish to speak to a licensed agent who can shop for multiple companies to get the best chance of approval.
All three of these companies offer the ability for full underwriting reviews and guaranteed acceptance.
- Nationwide: Nationwide offers a whole life product with limited to no underwriting.
- Mutual of Omaha: Besides being one of the most familiar brands in insurance, Mutual of Omaha has a product specifically designed for individuals with pre-existing conditions such as cancer. However, you can only buy it directly from Mutual of Omaha and not through an independent broker.
- State Farm: State Farm receives positive reviews for customer satisfaction and has a high financial strength rating.
Frequently Asked Questions About Life Insurance for Cancer Patients
Yes, but the coverage type will depend on cancer type, stage, treatment and the patient’s current health status. Guaranteed issue is the most common type of life insurance policy, but some may qualify for term or universal life.
Yes, a cancer history or diagnosis will most likely affect the cost of life insurance as it creates a higher financial risk to the life insurance company.
Yes, you do. Life insurance companies subscribe to various systems, allowing them to request medical history upon an applicant’s documented consent. Not disclosing this information is not only against the law, but it will increase the chances of getting declined for coverage. If this information is discovered after you pass away, it may prevent your beneficiaries from receiving the death benefit payout.
You can buy life insurance during or after cancer treatment, but products and coverages will differ vastly. Getting life insurance during cancer treatment will be limited to either a guaranteed issue whole life product, which has a waiting period for the death benefit payout, or a guaranteed issue term life product accessible through an employer group health plan.
Getting coverage after treatment in some cases will expand the type of coverage and benefit levels available based on the effectiveness of treatment.