Does Life Insurance Cover Cancer-Related Deaths: Lawyers Explain if Policies Will Pay Out

According to the CDC, more than 1.6 million people develop cancer each year in the United States, and approximately 600,000 die from it. It is the second leading cause of death. It is no wonder then that so many Americans want to purchase life insurance to ensure their families’ financial protection. But do life insurance policies cover deaths from cancer?

In this article, our life insurance lawyers explain whether a life insurance policy will pay out if the insured dies of cancer and what beneficiaries can do if their claim is denied.

Will Life Insurance Pay Out for Cancer-Related Deaths?

In most cases, life insurance policies do cover cancer-related deaths. Standard policies such as term or whole life offer coverage for deaths resulting from natural causes. Cancer is considered a natural cause, so policy beneficiaries will most likely receive the life insurance payout unless there is a material misrepresentation on an application of a new policy. 

Types of Cancers Covered by Life Insurance

Here are the most common types of cancer life insurance covers: 

  • Breast cancer
  • Lung cancer
  • Thyroid cancer
  • Prostate cancer
  • Colon cancer
  • Ovary cancer
  • Stomach cancer
  • Pancreatic cancer
  • Uterine cancer
  • Bowel cancer
  • Testicle cancer

What Happens if the Insured Gets Cancer After Buying Life Insurance?

If the insured develops cancer right after buying a life insurance policy, they may be required to  inform the insurance company not to risk the death benefit being denied after their death. The life insurance company will then check additional information with the insured’s doctor and decide whether to change the premiums or not. Failure to update the insurer on the new health condition may result in claim denial.

do life insurance policies cover cancer

Do Accidental Death and Dismemberment Policies Cover Cancer?

Accidental death insurance policies do not cover deaths due to cancer. Such policies only pay out if the insured is injured or dies due to accidental causes such as car accidents, poisoning, or drowning. Cancer is not listed as an accidental cause.

Read our blog post about accidental death and dismemberment payout to learn more about what qualifies as accidental death.

Exceptions for Cancer Coverage

While cancer life insurance policies are specifically designed for people who are cancer survivors or have been diagnosed with cancers, there still are a few scenarios where a life insurance company might refuse to pay out the policy proceeds for such deaths.

Material Misrepresentation

When buying life insurance, applicants must be honest on their life insurance policy application. If the insured dies within the first two years of the policy’s effective date, also known as life insurance contestability period, the insurer has the right to investigate the cause of death to make sure no fraud was committed. That means that they will review the application documents and check the accuracy of the information.

If they discover inconsistencies or can prove that the policyowner intentionally omitted information to secure coverage, even though the cause of death (cancer) is covered, the claim for death benefits may be denied due to material misrepresentation. For example, if the applicant fails to mention their smoking habits and later dies of lung cancer; or that their family medical history includes cancer diagnoses (especially the hereditary types such as breast, pancreatic, or prostate cancer), the claim may be denied. Read more about what happens when the insurer discovers a material misrepresentation on the life insurance policy.

Non-Payment of Premiums

Whether the policy was active at the time of the insured’s death is the first thing insurance companies look at before reviewing a life insurance claim. Failure to pay the premiums voids the policy and will result in claim denial. You can learn more about what to do in such cases from our article on life insurance policy lapse.

does life insurance pay if you die of cancer

What to Do if Your Life Insurance Payout Was Denied Due to Death Caused by Cancer

It is not uncommon for life insurance claims involving deaths caused by cancer to be denied. In such cases, it is important not to take the denial at face value and seek legal help instead. You want to act immediately so that you do not allow the appeal deadline to pass. 

At our law firm, our life insurance lawyers have successfully handled many wrongfully denied life insurance claims. We can help determine whether the life insurance claim denial reason is valid and offer advice on how to proceed next. We have the experience to walk you through the appeal process, file a proper response on time, and protect your life insurance beneficiary rights.

We work on a contingent fee basis which means that we get paid only if we win your case. Contact us at (888) 510-2212 for a free consultation with one of our denied life insurance claim lawyers.

 

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About the author

Attorney Tatiana Kadetskaya has over 10 years of experience in life insurance law representing beneficiaries and policy owners. She is best known for successfully collecting denied and delayed claims and settling complex beneficiary disputes and interpleader lawsuits.

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