While it’s extremely rare for any cancer survivor to get a preferred plus life insurance rate, it can happen…
We got inquiry from a 69 year old gentleman who had surgery for oropharyngeal cancer 13 years ago, and he’s been in remission since.
His health was really good otherwise, but we still quoted him standard rates and told him we’d apply for better rate class. However, we were not comfortable quoting him lower rates, as we never want anyone to accuse us of “low-balling” someone.
We had him apply to the best companies for him that only question about cancer treatment within past 10 years on their application and medical exam, knowing these companies would be our best bet to get him a better than Standard rate.
How Insurance Companies Find Out About Non-Disclosed Cancer History
Even though this gentleman did not have to provide information about his past cancer on his applications, since it was more than 10 years ago when he last had any treatment, this is not the only way insurance companies can find out about medical history.
Almost every life insurance company does an MIB search on every application, which shows your life insurance application history over the previous 7 years.
A code for cancer would likely show up on the MIB, again, if you have applied for any life insurance over previous 7 years.
Almost all insurance companies also do a pharmacy records database search. Any chemotherapy drugs could show up on this search, but not if you have been off of the drugs for many years.
When you’re 69 years old and applying for life insurance, almost all of the best life insurance companies for you would also request your medical records. The records would likely show that you are a cancer survivor.
More Liberal Underwriting on Permanent Life Insurance
These particular insurance companies did want to see medical records on this 69 year old gentleman, which we obtained, and they showed the stage of his cancer as T1N1MO. He remained cancer-free for past 13 years, and this gentleman qualified for a Preferred Plus rate on permanent life insurance.
This gentleman did apply for Guaranteed Universal Life coverage, and many insurance companies tend to make better offers on permanent life insurance than they do on term life.
So would they have offered him a preferred plus rate on term life?
I don’t know, and I wouldn’t even ask this question because we’d never want to give the underwriter another reason to re-review any awesome offer.
Underwriters are human, so they do sometimes make mistakes. We always recommend placing any great offers in force after we get them!
If you’ve answered all questions on insurance application and insurance exam honestly, then there’s no need to question whether or not your offer is valid.
Don’t Overshare Information on Insurance Application or Exam
We’ve probably said this over a thousand times in our careers, but you should never provide more information than any life insurance application or insurance exam questions you about.
When a typical question is “In the past 10 years, have you been diagnosed with, treated, or advised to get treatment, hospitalized, or presently taking prescription medication or had any medical procedures for any type of cancer?” and of all your treatment, medication, and procedures have ended more than 10 years ago, then you should answer “NO” to this question.
And don’t mention having cancer 13 years ago, 15 years ago, etc., as more information that is provided than asked for gives no benefit to you.
Always be honest, but never over-share!
Standard Rates are Usually Best Case Rate for Cancer Survivors
While Standard or Regular rates are the usual best case rates for cancer survivors, this is not always the case, as you can see from above.
Below are other recent cancer cases we shopped to numerous insurance companies with their outcomes:
- Testicular cancer with removal, chemo and radiation 26 years ago…best offer Standard Plus
- Prostate cancer with radiation treatment only 9 years ago, with PSA of .04 after treatment ended and current PSA of .26…best offer Standard
- Melanoma 13 years ago, prostate cancer 7 years ago…best offer Standard
- Stage 1 Breast cancer 10 years ago with lumpectomy, chemo and radiation…best offer Standard Plus
- Stage 3 Prostate cancer with removal 9 years ago then with recurrence and subsequent radiation ending 7 years ago…best offer Table 4, most companies declined
- Stage 3 Colon cancer with lymph node involvement, had colon resection and chemo ending 7 years ago…best offer Standard with $5 flat extra for 1 year, highest flat extra was $30
How Flat Extra Life Insurance Charges Work
An insurance policy charging an additional premium for a specific period of time is a flat extra.
A common flat extra could be $5 per $1,000 in addition to the standard life insurance rate, like on the colon cancer case mentioned above.
So on a $100,000 policy, for example, a $5 per $1,000 flat extra equates to an additional $500 charge per year on top of the Standard life insurance rate.
The math done above is 5 multiplied by 100 equals 500.
If an insurance policy charges flat extra for one year, then your premium would be $500 less starting in year two.
Any flat extra could be charged on any cancer case, which is why cancer cases need to be shopped thoroughly.
For example, on the colon cancer case mentioned above, another insurance company offered $30 per $1,000 for the highest flat extra. On a $100,000 policy, the flat extra equates to an additional $3,000!
Pay for Policy ASAP After Getting Great Rate
Our 69 year old gentleman was happy to qualify for an even better rate than we quoted.
He accepted and paid for the policy right away, based on our recommendation.
The bottom line here is that if you ever get any Standard or better offer on life insurance as a cancer survivor, accept the policy right away and pay at least a monthly premium so you “lock in” your coverage.
If you want to try for better rate later, then at least you’ll never do worse than policy you already paid for.
We have the best system for shopping any cancer life insurance case. Don’t hesitate to call us at 1-800-380-3533, click here to email us, or simply click on link below to get an accurate cancer life insurance quote.
Since 1992, Gordon E. Conwell, III (G3) has helped thousands of ”higher risk” individuals get the best life insurance rate/value. Being a high risk himself, he knows the struggles you’ll face trying to get affordable life insurance. His unique shopping process and underwriting knowledge will result in the best offers, every time!