Life insurance for cancer patients and survivors in Australia

Do I have to mention my diagnosis if I haven’t taken out insurance yet?

If you have cancer and you apply for insurance cover, you must inform the insurer of your condition. Under Australian insurance law you must tell your provider anything that may be relevant to their decision to offer you cover, so you’ll need to disclose your diagnosis when you fill out an application form.

Currently, you must also inform your insurer of genetic test results when you apply for life insurance. However, as of 1 July 2019, some people will no longer be required to do so depending on the type of policy and the amount you're covered for. If your benefit limits are below the following amounts, you will not be required to disclose the results of your genetic tests:

• Death and total & permanent disability: $500,000 lump sum
• Trauma: $200,000 lump sum
• Income protection: $4,000 per month

Positive results (which mean you’re more likely to get cancer) will typically lead to increased income protection and life insurance premiums, while negative results will usually help an insurer decide that you are no more likely to get cancer than anyone else.

What can the benefit payment be used for?

With this in mind, it becomes clear just how important the financial protection offered by trauma insurance can be. Not only will you and your family suffer from an emotional perspective if you receive a cancer diagnosis, but your finances will also take a hit. You may need to undergo expensive treatments, laborious rehabilitation processes and more, while at the same time you may need to take time off work and not be able to draw your regular income.

The lump sum benefit your policy offers can be used to pay your medical bills, manage ongoing expenses, help with your recovery and other expenses that may arise.

Trauma insurance is therefore about providing protection against the uncertainties that may arise in the future, safeguarding your family against the potential financial impact of a cancer diagnosis.

Learn more about the benefits of trauma insurance

Steps to increase the likelihood of finding cover

Below is a list of tips and strategies that will help to increase your odds of having your life insurance application accepted and receive the life insurance cover you need.

Compare options for life insurance with pre-existing medical conditions

Frequently asked questions

• How does a cancer diagnosis affect life insurance?

  Cancer is considered a pre-existing medical condition and these are usually handled in a few ways. Cover may be refused altogether, it may be approved with a premium loading applied or it may be approved with cover excluded for claims related to your diagnosis.

• How long after a cancer diagnosis can you get life insurance?

  It really depends on the provider but generally, the longer you've been in remission, the higher your chances are for approval. Life insurance providers may want to wait two to five years (or longer) after your treatment ends to provide you with cover.

• When is a cancer patient considered a survivor?

  A cancer survivor is typically a person who has successfully undergone some type of cancer treatment and has been in remission for at least five years. The definition of a cancer survivor can vary greatly amongst insurance providers, however, and each provider will review each case on an individual basis.

• Do you have to tell insurance about cancer?

  If you've been diagnosed with cancer before applying, you will need to tell your insurer. If you receive a diagnosis once your life insurance policy is already up and running, you generally won't need to advise your insurer unless you're changing your level of cover or renewing your policy.