Life Insurance and Cancer

Dealing with cancer, or supporting someone who is, is one of the hardest things a person can go through. Financial worries can add to that pressure, which is why it's worth understanding how life insurance and cancer interact.

This guide is for those who already have a policy in place, and those who are looking to get one. It covers three main areas: what your existing life insurance covers if you develop cancer, whether you can take out a new policy, and an alternative option that may suit some people regardless of their health history.

In this article

What happens to my life insurance if I have cancer?
Can I get life insurance if I have cancer?
Post Office Over 50s Life Cover: an alternative option
Common questions about life insurance and cancer

What happens to my life insurance if I have cancer?

If you already have a life insurance policy and are diagnosed with cancer, your policy does not change. You don't need to inform your insurer of a new diagnosis and it won't affect your existing cover or premiums.

What matters is that the information you provided when you took out your policy was accurate and complete. As long as that's the case, your policy remains valid.

Does life insurance pay out for cancer?

If you are diagnosed with terminal cancer and a doctor states that your life is likely to end within 12 months, many life insurance policies will pay out your full benefit amount up front. This is known as terminal illness cover. With Post Office Life Insurance, this is included as standard in term life insurance policies.

Terminal illness cover gives you and your family access to funds at a time when they may be needed most, enabling you to put finances to the back of your mind and focus on your time.

For non-terminal cancer, your life insurance policy remains active as it was before. If you pass away as a result of cancer within your policy term, your benefit amount will be paid to your loved ones.

What about critical illness cover?

Critical illness cover is an optional add-on, separate from life insurance. It pays a lump sum if you're diagnosed with one of a number of specified serious conditions.

With Post Office Life Insurance, critical illness cover includes cancer, though not all types. Less advanced cases are excluded, and the policy wording sets out specific criteria for what qualifies. It's worth reading the full terms and conditions carefully to understand exactly what is and isn't covered.

If you already have critical illness cover as part of your policy and are diagnosed with a qualifying cancer, you may be able to make a claim. Contact your insurer as soon as possible to discuss your situation. Please note, to claim critical illness cover you need to survive for at least 30 days after your diagnosis. While this may sound strange, all it means is that you can’t claim payouts for both critical illness cover and life insurance within a very short period.

Can I get life insurance if I have cancer?

This is where things become more complicated, and where it's important to be straightforward with you.

Life insurance is medically underwritten. When you apply, you'll be asked detailed questions about your health and medical history. Insurers use this information to assess risk and decide whether they can offer you cover, and at what cost.

For people with a current or past cancer diagnosis, the outcome of that assessment will vary significantly depending on the type of cancer, when it was diagnosed, and what treatment you've had.

Post Office's position

At Post Office, we assess each application individually. We're unable to offer term life insurance policies to most people with a current or previous cancer diagnosis. However, there are some exceptions. Depending on the type of cancer and when treatment took place, we may be able to help. Getting a quote online is the quickest way to find out where you stand.

We understand that receiving a decline is difficult, especially when you're already going through a tough time. If we're unable to offer you cover, it's worth knowing that other providers may have different criteria, and it may be worth exploring your options further.

The importance of disclosure

Whatever insurer you apply to, it's essential to answer all health questions fully and honestly. It can be tempting to leave things out, perhaps hoping it won't affect the outcome, or not knowing whether something is relevant.

But if a claim is ever made, insurers will access medical records. If any information was inaccurate or incomplete at the time of application, the claim will be rejected and the policy cancelled. That would mean premiums paid for nothing, and your loved ones left without the support you intended for them.

Full disclosure is always the right approach.

Can I get life insurance with a family history of cancer?

A family history of cancer is a different matter from a personal diagnosis. Many people with a family history of cancer are still able to get life insurance, though it may affect the questions you're asked and potentially the premiums you're offered.

When you apply for Post Office Life Insurance, you'll be asked if any of your immediate family, living or deceased, have ever been diagnosed with cancer prior to the age of 60. If the answer to that question is yes, we ask how many family members that applies to. Those are the only questions asked about family history and cancer.

Post Office Over 50s Life Cover: an alternative option

There is another type of life insurance which works a little differently and doesn’t ask any medical questions when you take out a policy.

Post Office Over 50s Life Cover is a whole of life policy, which means it covers you for the rest of your life rather than for a fixed term. As the name suggests, it’s only available for over 50s and is designed for those looking to leave behind a small but guaranteed payout. The maximum benefit is up to £10,000, depending on age, so over 50s life insurance provides a modest financial gift for loved ones, as opposed to covering things like mortgages.

Crucially, it has guaranteed acceptance for anyone aged 50 to 80 who is a UK resident.

How does it work?

You choose a benefit amount between £1,000 and £10,000 and pay a monthly premium. When you pass away, your loved ones receive that lump sum. This type of cover is often used to help cover things like funeral costs, outstanding debts or to leave a small gift behind.

There are a couple of things to be aware of. In the first 12 months of the policy, known as the deferred period, the policy won't pay the full benefit if you pass away from a non-accidental cause, which includes cancer. Instead, it will pay 1.5 times the premiums you've paid up to that point. After 12 months, the full benefit amount is payable.

It's also worth noting that if you live a long time, you could end up paying more in premiums than the benefit amount.

Is Over 50s Life Cover right for me?

That depends on your circumstances and what you're looking for. If you want guaranteed acceptance, a straightforward whole of life policy and the peace of mind of knowing something will be left behind for your family, regardless of your health, it may be worth considering.

Find out more about Post Office Over 50s Life Cover

Get a quote

Key takeaways

If you already have life insurance and are diagnosed with cancer, your policy remains valid and you don't need to inform your insurer
Terminal illness cover, included as standard in Post Office Life Insurance, pays out your lump sum while you're still alive if you're given less than 12 months to live
Taking out a new life insurance policy with a cancer diagnosis is more complex. Eligibility depends on the type of cancer and individual circumstances
Always answer application questions fully and honestly. Inaccurate information can invalidate a claim
Post Office Over 50s Life Cover offers guaranteed acceptance for those aged 50 to 80, with no medical questions asked

Common questions about life insurance and cancer

If you already have a policy in place, you don't need to inform your insurer of a new cancer diagnosis. Your existing cover and premiums won't change. What matters is that the information provided when you took out the policy was accurate at the time.
Possibly. Whether a cancer survivor can get term life insurance will depend on factors including the type of cancer, how long ago treatment ended, and the individual insurer's criteria. Some survivors, particularly those whose treatment concluded a number of years ago, may find they're able to get cover, though premiums may be higher to reflect the additional risk.
For people who are unable to get standard term life insurance due to a cancer diagnosis, Post Office Over 50s Life Cover may be an option. It offers guaranteed acceptance for UK residents aged 50 to 80, with no medical questions asked. Cover amounts are smaller than term life insurance, but the guaranteed acceptance makes it accessible regardless of health history.

Our life cover products

Life insurance

Choose between level, decreasing or increasing term insurance, each designed to offer you peace of mind based on your circumstances.

Discover life insurance
Over 50s life cover

If you're aged between 50 and 80, we could help you leave a cash sum for your family or towards your funeral costs.

Discover over 50s life cover

Related guides

What is life insurance

Types of life insurance explained

How much does life insurance cost?

Over 60s life insurance

Critical illness and children's cover

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