Cancer like any other illness
If you have an existing life insurance policy, a payout from it in case you die of cancer should be treated like other circumstances of death covered in the policy.
However, you must make correct disclosures about your medical health to the insurance company. For instance, if you have said that you are a non-smoker, but it is found that the reason for your death is lung cancer due to continuous consumption of tobacco in the past, your life insurance company is well within its rights to dishonour any claims made on the policy.
However, like all other conditions, it would be wise to make a prior check with your insurance company on whether the policy specifically covers cancer.
In case you already have cancer and would like to purchase life insurance, it might be tough to get one. In most cases, a life insurance company would wait for two to three years after you have recovered from cancer before it issues a policy to an existing cancer patient.
Also, the premium in the first few years could be higher given that the risk of you getting the disease again is higher in the initial years. If there is no recurrence of cancer, the premiums may go down in value terms as time progresses. However, again it would depend on the insurer, so policy terms will need to be checked for the same.
Once cancer is diagnosed, it might be difficult to increase the sum assured of the policy for some time. However, it is best to keep paying premiums and keep the policy alive. As getting a new policy once diagnosed with cancer becomes tough, it will be best to have the existing one going for you.
‘Special event’ clause
The policyholder may want to check with the insurance company if it is possible to increase the sum assured under ‘special event’ clause, and if cancer is covered in that clause.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00