Every year, more than 1.6 million Americans receive a cancer diagnosis, and about 600,000 people die from the disease. It ranks as the second most typical cause of death. So it makes sense that many people choose life insurance to ensure financial security for their loved ones.
Most of the time, cancer-related deaths are covered by life insurance policies. Natural cause deaths are covered by common insurance policies like term or whole life coverage. Unless there is a major misrepresentation on a new policy application, cancer is regarded as a natural cause, therefore policy beneficiaries will likely get the life insurance benefit.
What Kinds of Cancers are Covered by Insurance Policies?
Some common kinds of cancer that a life insurance providers coverage of include:
- Lung cancer
- Breast cancer
- Thyroid cancer
- Colon cancer
- Prostate cancer
- Ovary cancer
- Pancreatic cancer
- Testicle cancer
- Stomach cancer
- Bowel cancer
- Uterine cancer
What Happens if the Insured Develops Cancer Following the Purchase of Life Insurance?
It may be necessary for the insured to notify the insurance provider if they are diagnosed with cancer shortly after purchasing a life insurance policy in order to avoid the possibility of their death benefit getting rejected. The life insurance company will next confirm any additional details with the insured's physician before deciding whether or not to adjust the premiums. Denial of a claim is possible if the insurer is not informed of the new medical condition.
Cancer Coverage Exceptions
There are a few situations where a life insurance company can decline to pay up the proceeds for such deaths, even though they cater to people who have been diagnosed with cancer or who have survived cancer.
Material Misrepresentation
Applicants must be truthful on their life insurance policy application while purchasing life insurance. The insurer has the right to look into the cause of death to ensure no fraud was perpetrated if the insured passes away within the first two years of the policy's effective date, a time known as the life insurance contestability period. This implies that they will examine the supporting materials for the application and verify the veracity of the data.
The claim for death benefits may be rejected owing to material misrepresentation even though the cause of death (cancer) is covered if they find contradictions or can demonstrate that the insurer purposefully withheld information to achieve coverage. The claim may also be rejected, for instance, if the applicant smokes and later passes away from lung cancer or if their family's medical history contains cancer diagnoses (particularly hereditary cancers like breast, pancreatic, or prostate cancer).
Failure to Pay Premiums
Before examining a life insurance claim, insurance companies must determine if the policy was in effect at the time the insured passed away. The coverage is void if the premiums are not paid, and claims will be rejected as a result.
A life insurance provider may reject a claim for a cancer-related death. It is vital in such cases to refuse it and instead seek legal assistance. You must act promptly to prevent missing the deadline for submitting an appeal.
Our life insurance lawyers will fight any claim and win.