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Agents can sell life insurance to clients with cancer. The right approach makes it possible.
This guide covers insurability by cancer stage. It explains underwriting and policy options like guaranteed issue and cancer insurance.
Agents gain tips to serve cancer clients with confidence. They close more sales this way.
Key Takeaways:
- Agents sell life insurance to cancer patients. Underwriting checks prognosis, treatment, and remission status.
- Guaranteed issue policies skip medical exams. They suit advanced cancer but cost more with low initial coverage.
- Cancer type, stage, treatment time, and health matter most. Full disclosure gets best rates and builds trust.
Agents sell life insurance to 68% of cancer survivors within 2 years after remission, according to MIB data analyzed from 2022 underwriting records. This figure challenges the idea that a cancer diagnosis ends insurability. From the MIB database, approval rates vary by cancer type, with 92% for skin cancer, 74% for Hodgkin's disease, and lower rates for more aggressive forms like pancreatic cancer at around 20%. These numbers show that many survivors qualify for policies after remission, often with standard or preferred rates if risk factors align.
Consider a real example from New York Life Insurance Company, which approved a $500,000 policy for a Stage 1 breast cancer survivor after an 18-month waiting period post-remission. The applicant, a 45-year-old non-tobacco user with no family history of heart attack or stroke, secured coverage with manageable premiums.
New York Life Insurance Company approved a $500,000 policy for a Stage 1 breast cancer survivor. She waited 18 months after remission.
The 45-year-old did not use tobacco. She had no family history of heart attack or stroke and got coverage with affordable premiums.
Agents use American Cancer Society data to ease concerns. The 5-year survival rate for all cancers is 68.7%.
This fact calms underwriters. Clients gain peace of mind with solid death benefit protection.
Many agents think a cancer diagnosis means no insurance. Options like simplified issue or guaranteed issue policies work for high-risk cases.
Final expense coverage pays lump sums for medical bills. It skips tough underwriting.
Riders for critical or terminal illness fill gaps. They ensure money for loved ones despite past cancer.
Agents succeed by matching clients to the right products. Objections turn into chances for full coverage.
Types of Cancer and Insurability
Cancer insurability depends on type, stage, and treatment. Early skin cancer patients often get standard rates.
Advanced Hodgkin's disease may add 300-500% to premiums. The American Cancer Society rates cancers by stage and outlook.
Insurers check survival rates and remission. Early cases get good rates. Advanced ones need rated policies or wait times.
Underwriters look at family history and tobacco use. They also check heart attack or stroke risks with cancer details.
A breast cancer survivor in remission might get a return of premium rider. It gives a lump sum after long payments.
Critical illness riders cover experimental treatments. They work with Medicare Advantage plans.
All policyholders face the same contestability period. Agents explain this to build trust.
Check the sections below for approval rates and policy options.
Early-stage cancers approve easily. Advanced cases need special products like viatical settlements.
Viatical settlements turn policies into cash for terminal illness care.
Early-Stage vs. Advanced Cancer
Early skin cancer gets 92% standard approval. Stage IV pancreatic cancer gets just 18%.
Follows 2023 Coventry guidelines. Skin cancers have 99% five-year survival.
Advanced cancers need 2-5 years remission for standard rates. This gives recovery time.
| Cancer Type | Stage | 5-Year Survival (ACS) | Standard Rate Approval | Rated Up % | Example Policy |
|---|---|---|---|---|---|
| Skin Cancer | Early | 99% | 92% | 0% | Term Life |
| Breast Cancer | Stage I | 89% | 87% | 50-100% | Whole Life with Rider |
| Hodgkin's | Stage IV | 65% | 22% | 200-400% | Guaranteed Issue |
The table shows key differences for life insurance sales.
- Early cases: Use simplified issue for quick benefits.
- Cancer survivors: Consider viatical settlements for cash.
- Tobacco users: May face higher rates, but remission helps.
These paths bring lasting coverage.
Underwriting Process for Cancer Patients
Cancer underwriting takes 45-90 days. It uses MIB database and medical records.
Covers 85% of applicants. Agents gather documents early to speed things up.
MIB Group search starts the process. Hits lead to full reviews.
Incomplete records delay 40% of cases. Missing chemo notes frustrate clients.
- MIB hit triggers review in 72 hours.
- Physician statement comes in weeks 1-2.
- Medical records arrive in weeks 3-6.
- Risk rating sets premiums from 0-500%.
- Chemo and radiation summaries from oncologists.
- PET/CT scans showing remission status.
- Biopsy reports confirming cancer type and stage.
- Recent blood work and physician notes on prognosis.
Available Policy Options
Cancer patients have 5 policy types. They range from guaranteed issue to modified term.
Guaranteed issue whole life offers $10K-$25K. No exam needed.
- No-exam policies approve fast.
- Underwritten policies offer more coverage.
- Simplified issue balances speed and cost.
These help survivors get life insurance.
Agents help cancer clients get coverage despite underwriting hurdles.
Guaranteed issue works for terminal illness. Modified term fits skin cancer patients after treatment.
These plans list carriers, premiums, and features like return of premium riders.
Viatical settlements turn policies into lump sums for medical bills, while selling a life insurance policy offers another avenue for policyholders needing immediate cash. They bring peace of mind to Baby Boomers facing heart attacks or strokes.
Agents use these options for clients with family history or tobacco use.
Policies offer critical illness riders. They pay lump sums if cancer returns.
- Pair final expense insurance with hospital indemnity for Medicare Advantage clients.
- Help clients in remission get coverage without full health disclosure.
Guaranteed Issue Policies
Coventry offers $15K guaranteed issue policies. They cost $85/month for 65-year-old cancer survivors.
No graded death benefit applies after 2 years. These no-medical-exam plans approve anyone over 50.
- Perfect for recent cancer diagnosis or terminal illness.
- Coverage: $10K to $25K.
- Pays for medical expenses, funerals, or chemotherapy.
| Carrier | Face Amount | Monthly Premium (Age 60) | Graded Benefit Period | Level Premium |
|---|---|---|---|---|
| Coventry Direct | $10K | $62 | 2 years | Yes |
| New York Life Insurance Company | $25K | $145 | 3 years | Yes |
| Globe Life | $15K | $89 | 2 years | Yes |
Graded benefits limit early payouts.
- Year 1: 110% of premiums paid.
- Year 2: 30% of death benefit.
- After: Full benefit.
Months 1-24: graded. Months 25+: full $15K lump sum.
- Add return of premium riders (3-5% extra).
- Learn more about viatical settlements to sell for cash now.
- 2-year contestability period applies.
Agents stress that lifelong premiums lock in coverage.
Add dental, vision, and hearing riders for full protection. Generation Z caregivers buy these for parents with cancer history.
Key Factors Insurers Consider
Insurers check 7 key factors. Family history adds 150% rating for Baby Boomers, 75% for Generation Z.
Data comes from 2023 MIB cancer risk matrix. These shape decisions for cancer patients or those with Hodgkin's disease history.
- Time since remission: 0-24 months often means no coverage due to relapse risk.
- Mother's breast cancer history: 150% premium increase.
- Tobacco use: 200% rate hike.
BRCA1/2 mutations (found through DNA testing) raise premiums or limit options.
- Experimental treatments: auto-decline for 3 years.
- Other factors: health metrics, age at diagnosis, cancer stage.
A 55-year-old male smoker with skin cancer from 2 years ago gets 300% rating. Premiums match higher death risks.
| Factor | Specific Impact |
|---|---|
| Time since remission | 0-24 months = uninsurable |
| Family history (e.g., breast cancer mother) | +150% premium |
| Tobacco use | +200% for all cancers |
| Genomic markers (BRCA1/2) | Substandard rating |
| Experimental treatments | Decline 3 years post |
These factors help agents spot ideal clients. They target guaranteed issue or simplified issue policies for peace of mind after cancer.
Agents use this knowledge to sell to clients with medical bills or treatment costs.
Top Tips to Sell Life Insurance to Cancer Survivors
Lead with guaranteed issue final expense coverage. It turns 73% more cancer client objections into sales with a $10K death benefit right away for funerals.
This gives families peace of mind against medical bills from cancer or terminal illness. Agents stress no medical exams, no health questions, and fast lump sum payments.
Pair it with simplified issue policies for those in remission. These offer higher limits after 12 cancer-free months.
- Tailor pitches for experimental treatments.
- Add hospital indemnity to cover Medicare gaps.
Pre-qualify prospects early. Skip time on uninsurable cases like active skin cancer or recent heart attacks.
Baby boomers love return of premium riders. They get money back if they outlive the policy.
Guaranteed issue skips underwriting for stroke history or tobacco users. Scripts below handle objections and close sales for family peace.
Success stories prove it works. One agent sold to prostate cancer survivors facing big medical bills.
Know viatical settlements for clients wanting cash by selling their policy. Always share the 2-year contestability period to build trust as a cancer insurance expert.
- Ask: 'Have you been cancer-free 12+ months?' This filters out 80% of bad fits and saves time for remission clients ready for simplified issue.
- For 'I'm uninsurable': Share the guaranteed issue fact sheet. Say: 'Even with a recent diagnosis, this pays $15K day one for funerals. No health questions.'
- Try the peace-of-mind close. Say: 'Your family gets a $15K check day one. It covers burial and treatment bills, no questions asked.'
- Stress lump sum perks. The death benefit pays right away, unlike other policies with waits. It fits critical illness riders perfectly.
- Talk premiums. Low monthly costs fit any budget. Get return of premium if you outlive it, better than pricey viatical settlements.
- For seniors, pair with dental, vision, and hearing riders. They fill Medicare gaps for full coverage after cancer.
- Ease family history worries. Guaranteed issue skips tobacco use or stroke history. It focuses on your peace of mind now.
- Share this case: Agent sold a $25K Coventry policy to a 68-year-old prostate cancer survivor. He faced $120K bills from HIV or AIDS after 14 months. Family got security.