Burial Insurance for Cancer Patients and Survivors

Can you get burial insurance if you have cancer?

Yes, in many cases some kind of burial insurance policy is available. Having cancer, or having had it, mainly changes which type a company may offer. Level policies pay in full from day one. Graded and guaranteed issue policies have a waiting period. See how the three policy types work.

Burial insurance, also called final expense insurance, is a small whole life insurance policy meant to help pay for a funeral and final bills. Many policies use health questions, and the company checks records such as your prescription history.

You are far from alone. The National Cancer Institute estimates there were about 18.1 million cancer survivors in the United States as of January 2022, and expects that number to reach 26 million by 2040. Many people who apply for burial insurance have a cancer history.

What is commonly offered at each stage

Some companies look at the kind of cancer too. For example, someone asking about burial insurance after breast cancer will usually be asked about dates of diagnosis and treatment and any ongoing medicine, just like other cancers. A Licensed Insurance Agent can check how different companies word these questions.

Why the date of your last treatment matters

Many cancer questions ask about a set window of time, such as "in the past two years" or "in the past five years." This is called the look-back period. The clock usually runs from your last treatment, not from your diagnosis.

"Treatment" often means surgery, chemotherapy or radiation. Some companies also count ongoing medicine taken to keep cancer from coming back. Ask the Licensed Insurance Agent how each company defines it.

Remission means signs and symptoms of cancer are reduced. Doctors call it partial remission when some signs are gone and complete remission when all are gone, according to the National Cancer Institute. Insurers usually care less about the word "remission" and more about the dates and whether the cancer has returned.

What the waiting period means for your family

On many graded and guaranteed issue policies:

• If death is from illness during the waiting period, the family usually gets back the premiums paid, often with some interest.
• If death is from an accident, the full benefit is often paid from the first day.
• After the waiting period, the full benefit is paid for any covered cause.

Example: a hypothetical guaranteed issue policy has an $8,000 benefit and a two-year wait. If the insured dies from cancer in month 10, the family receives the premiums paid plus the stated interest. If death happens in month 30, the family receives $8,000. The exact terms are in the policy section usually called "graded death benefit" or "limited death benefit."

If you are diagnosed with cancer after you buy a policy

The health questions are about your health when you apply. Burial insurance is commonly whole life insurance, and the NAIC notes that whole life premiums are typically paid on a set schedule. A diagnosis that comes after the policy is issued is generally not a reason for the company to cancel the policy or raise the premium, as long as premiums are paid and your application answers were accurate.

If death happens after any waiting period ends, the full benefit is generally paid, including when the cause is a cancer found after you bought the policy. Ask the Licensed Insurance Agent to show you where the policy states that premiums and the benefit are fixed.

Who a new policy is and is not right for

• It may fit a survivor whose treatment ended years ago and who wants a fixed amount for funeral costs for life.
• It may fit someone in treatment who expects to live well past a two-year wait and wants to have coverage in place.
• It may not be worth it if the outlook is short. During the waiting period, many policies return premiums rather than the full benefit. Putting the same money in savings may do a similar job. See burial insurance with a terminal illness.

Already have life insurance? Check it first

Many people have an old policy from work, a union or years ago. Before buying new coverage, find out what you have.

• Accelerated death benefit. Some life insurance policies let you take part of the death benefit early if you are terminally ill. The NAIC suggests asking which illnesses qualify and how much would be left for your beneficiaries.
• Group life insurance at work. Ask your employer or union whether you have coverage and whether it can continue if you stop working.
• Selling a policy (viatical settlement). Some ill people sell a policy for cash. State regulators warn that you get less than the face value, your beneficiaries receive no benefit from the policy, and it may affect Medicaid eligibility. Compare other options first.

Questions you may see on the application

• Have you been diagnosed with or treated for cancer in the past [number] years?
• Are you currently being treated for cancer, or has treatment been recommended?
• Has your cancer ever come back or spread?
• Have you been diagnosed with more than one type of cancer?

Answer exactly what is asked. During the first two years a policy is in force, a company can usually contest a claim if a material answer on the application was wrong. Accurate answers help your family receive the benefit you planned for.

What to have ready and what to ask a Licensed Insurance Agent

Have ready:

• The type of cancer and the date you were diagnosed
• Each treatment and the date of your last treatment
• Any medicines you take now, with doses
• Whether the cancer has come back or spread
• Your doctor's name and your latest checkup date
• How much you want to leave. Our funeral cost calculator can help you size it.

Ask the Licensed Insurance Agent: Which companies may offer me level or graded coverage based on my treatment dates? If you suggest guaranteed issue, why, and what exactly is paid during the waiting period? Is the price fixed for life?

Caregivers and adult children often do this research. A family member can usually own and pay for the policy, but the person insured must agree and sign. See burial insurance for parents. To compare what a funeral may cost first, see average funeral costs. This page is general information, not medical advice.