What Kinds of Cancers Are Covered by Life Insurance Policies?
Life insurance policies generally cover a wide range of cancers, including the most common types, such as:
Lung cancer
Breast cancer
Thyroid cancer
Colon cancer
Prostate cancer
Ovary cancer
Pancreatic cancer
Testicle cancer
Stomach cancer
Bowel cancer
Uterine cancer
These types of cancers are typically included in life insurance coverage, and as long as the policyholder is truthful on the application and the death occurs after the contestability period (usually two years), the claim should be honored by the insurer.
What Happens if the Insured Develops Cancer After Purchasing Life Insurance?
If the insured is diagnosed with cancer shortly after purchasing life insurance, it is essential that they notify the insurer as soon as possible. Failure to report the diagnosis could lead to complications when it comes time to file a claim, as the insurer may argue that the death benefit is not valid.
The insurer will typically verify the details of the cancer diagnosis by consulting with the policyholder’s physician and may adjust premiums accordingly. If the insured does not inform the insurance company of their diagnosis, the claim for the death benefit may be denied, even if cancer is ultimately the cause of death.
Cancer Coverage Exceptions: When Can Life Insurance Companies Deny a Claim?
While cancer is generally covered under life insurance policies, there are several scenarios in which a life insurance company may reject a claim, even if the insured’s death was due to cancer. The following are the most common reasons for denial:
1. Material Misrepresentation on the Life Insurance Application
When purchasing life insurance, applicants are required to provide accurate and truthful information on their application. If the insurer discovers discrepancies in the information provided during the first two years of the policy (the contestability period), they may initiate an investigation to ensure no fraudulent behavior took place.
For instance, if an applicant had a history of smoking and passed away from lung cancer, the insurer may deny the claim if it is discovered that the applicant failed to disclose their smoking history. Similarly, if there is a family history of cancer (such as hereditary cancers like breast, pancreatic, or prostate cancer), and the applicant didn’t disclose this information, the insurer could argue that the application was misleading or incomplete, leading to a claim denial.
2. Failure to Pay Premiums
To qualify for life insurance coverage, premiums must be paid on time. If the insured has not paid premiums before their death, or if there was a lapse in coverage, the insurance company may reject the claim. The insurer must determine that the policy was in effect at the time of the insured’s death, and if premiums were not paid, the coverage is void.
In cancer-related death cases, if premiums were not paid and the policy was inactive, the insurer is not obligated to pay the death benefit, and the claim will be denied.
3. Insurance Fraud
Occasionally, policyholders or their beneficiaries may attempt to commit insurance fraud by staging a death or misrepresenting the circumstances of the insured’s death. If an insurer suspects fraud—such as intentionally omitting medical conditions or falsifying information—they will conduct a thorough investigation.
If the insurer determines that the death was part of a fraudulent scheme or that the insured intentionally withheld critical health information to obtain the policy, the claim will be denied.
What Should You Do If Your Cancer-Related Life Insurance Claim Is Denied?
If your cancer-related life insurance claim is denied, it’s important to act quickly. The first step is to carefully review the denial letter to understand the reason for the rejection. Often, insurers will provide specific reasons for their decision, which can help guide your next steps.
Here are a few actions to take if your claim is denied:
Request an Appeal: Most insurers have a formal appeal process. Contact the insurance company to request information about how to challenge the denial.
Review Your Policy: Make sure that you fully understand the terms of your policy, including any exclusions and requirements. Ensure that the insurer’s reasons for denial are valid and align with the terms of your coverage.
Consult a Life Insurance Lawyer: If your claim denial is related to a material misrepresentation, failure to pay premiums, or fraud, it’s important to consult with an experienced life insurance attorney. An attorney can help you challenge the insurer’s decision, gather evidence, and represent you in court if necessary.
Our team of life insurance lawyers specializes in fighting claim denials, and we have a proven track record of successfully resolving disputes. We fight every claim and win, ensuring that your beneficiaries receive the benefits they are entitled to.
FAQ: Frequently Asked Questions About Cancer-Related Life Insurance Claims
1. Does life insurance cover cancer-related deaths?
Yes, life insurance typically covers cancer-related deaths, as cancer is considered a natural cause of death. However, the death must occur after the contestability period and the application must be truthful.
2. Can life insurance be denied if I had cancer before purchasing the policy?
If you had cancer prior to purchasing the policy and failed to disclose it during the application process, the insurer may deny your claim due to material misrepresentation. It is essential to provide accurate and complete medical history when applying for life insurance.
3. What is the contestability period?
The contestability period is typically the first two years of the life insurance policy. During this time, the insurer has the right to investigate the cause of death and the application for any discrepancies or fraud.
4. Can life insurance companies deny a cancer-related claim if premiums are not paid?
Yes, if premiums are not paid and the policy is lapsed or inactive at the time of death, the insurance company will deny the claim.
5. What should I do if my cancer-related life insurance claim is denied?
If your claim is denied, you should first review the denial letter and understand the insurer’s reasons. Then, consider filing an appeal with the insurance company. If necessary, consult a life insurance lawyer to help dispute the decision and ensure you receive the benefits.
6. Can a life insurance lawyer help with cancer-related claim denials?
Yes, a life insurance lawyer can help you navigate the process, appeal the denial, and pursue legal action if necessary. They can help ensure that your claim is handled fairly and efficiently.