It is possible to get life insurance at affordable rates after a cancer diagnosis

Securing life insurance after a cancer diagnosis, or other serious illness, may seem like an impossible task to many Canadians.

The perception, often, is any pre-existing condition will automatically result in denied coverage or prohibitively high premiums. However, that’s not always the case. With proper planning, thorough preparation,and expert guidance, it is possible not only to get approved for life insurance but also to secure coverage at standard rates.

Understanding life insurance underwriting

Life insurance underwriting is a process where insurance companies assess the risk of insuring an individual. Factors such as age, medical history, lifestyle and family health history play a critical role in determining eligibility and premiums. For individuals with a history of cancer or other significant illnesses, underwriters look closely at the details of their condition, treatment, recovery and current health status.

Many people make the mistake of submitting a life insurance application without giving the underwriters a full picture of their situation. That can lead to automatic denials or being categorized as a higher-risk applicant, resulting in higher premiums. The key to overcoming those challenges lies in providing the underwriters with all the information they need to make an informed decision. They are typically very busy and if you want a favourable outcome you can greatly increase your odds by providing extra information at the start instead of hoping they will have time to go back and ask for it.

The importance of packaging additional information

Insurance underwriters rely heavily on medical records and questionnaires but those documents alone may not tell the full story. A successful application for someone with a medical history often involves going beyond the standard forms. That might include:

• Detailed medical records highlighting successful treatments, remission, or recovery.

• Physician statements—A letter from your doctor detailing your health progress and prognosis.

• Lifestyle improvements—Evidence of positive lifestyle changes such as quitting smoking, maintaining a healthy weight, or adopting a regular exercise routine.

• Specialist evaluations—If applicable, a report from an oncologist or other specialists affirming your current health status.

The goal is to demonstrate to the underwriter you are a manageable risk. For instance, someone who was treated for breast cancer five years ago and has been cancer-free since (and provides a report confirming this) is likely to be viewed more favourably than someone who simply submits an application with basic medical records.

Why standard rates are possible

Insurance companies’ perspectives on illnesses like cancer have evolved in recent years. Advances in medical treatments, increased survival rates and better long-term prognoses mean insurers are more willing to offer standard rates to applicants who present a compelling case. Factors that can influence their decision include:

• Time since recovery—Many insurers have a waiting period after treatment before they will consider an application.

• Type and stage of illness—Early-stage cancers or conditions with high recovery rates may be viewed more favourably.

• Comprehensive follow-ups—Regular medical check-ups and evidence of continued good health can strengthen your application.

The role of a certified financial planner

Navigating the complexities of life insurance applications after a serious illness is not something you should do alone, or with someone who is simply licensed to sell products. This is where working with an insurance-licensed certified financial planner becomes invaluable. A CFP can:

• Guide the process—Help you understand what specific documentation and evidence to gather.

• Advocate on your behalf—Present your case to insurance companies in the best possible light.

• Compare options—Work with multiple insurers to find the best policy for your unique situation.

• Provide long-term planning—Ensure your life insurance coverage fits into your broader financial plan.

Choosing the right CFP professional is crucial. Look for someone who specializes in working with individuals who have medical histories and has a track record of securing approvals at standard rates. Their expertise can make the difference between an approval and a denial, or between standard and substandard rates.

Empowering Canadians to protect their families

A history of cancer or another serious illness does not have to be a barrier to securing life insurance and protecting your family. By taking a proactive approach, you can improve your chances of not only getting approved but also obtaining coverage at rates comparable to those without medical challenges.

The key is preparation, persistence and partnering with the right expert. Life insurance is a critical component of financial planning and with the right strategy, it is possible to ensure your loved ones are protected, regardless of your medical history.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.