Does life insurance cover cancer? Some insurers offer specific coverage for cancer diagnosis. Others offer coverage for disability and death that may result from the illness. However, payment can only be denied if you undergo a medical examination prior to hiring.
If the insurer unjustly denies the payment of the indemnity, it is possible to resort to receiving it in court, with the assistance of a lawyer specializing in consumer law. The deadline for contesting the denial is 1 year.
Does life insurance cover cancer?
Thinking about financial protection and protection against fatalities, many people have opted for taking out Life Insurance. The payment of premiums or monthly installments becomes part of the family budget, which is guaranteed insurance compensation when there are unforeseen events and fatalities. Insurers offer different types of coverage: death, disability, temporary disability and serious illness. What many people ask themselves, however, is: does life insurance cover cancer? We prepared a post to explain this matter.
Given the increase in life expectancy of the US population, Life Insurance insurers have noted the need to expand coverage for serious illnesses, such as cancer. Imagine a householder who is affected by cancer: after receiving the diagnosis, the treatment will directly affect his/her routine and work capacity, in addition to the need for financial resources that are not expected.
The additional protection offered by insurers for serious illnesses provides compensation for the diagnosis of such illnesses, such as cancer. Indemnity funds can be used during treatment, including aid for hospital medical expenses, which do not invalidate coverage in the event of the insured’s death.
One modality that has been offered by insurance companies is the “Woman Life Insurance”, which offers, in addition to conventional coverage, life insurance covering breast, uterine and ovarian cancer. The same is true specifically for men, with life insurance covering prostate cancer.
Another important issue to be considered when, if life insurance covers cancer, is the insurance claims that cover the insured’s total or partial disability. This is because, in many cases, cancer can lead the patient to total or partial disability. Insurance policies that provide for this type of coverage must indemnify policyholders, with sick pay and hospital medical expenses.
As to whether life insurance covers cancer, it is important to punctuate the waiting period. Grace period is a period established by the insurers in which, even if the insured is up to date with the payment of premiums, there is no right to receive indemnity if the claim occurs within this period. The grace period must be described in the contract.
In this sense, some grace periods are considered abusive if they correspond to half the term of the contract.
Some insurers may deny payment of the life insurance claim, claiming that the cancer is a pre-existing disease or was omitted from taking out the insurance. Since so many times that this type of situation has reached the courts, the jurisprudence has consolidated an understanding that must be followed in similar cases.
In other words, if the insurer did not undergo a pre-employment medical examination before signing the life insurance contract with the insured, it cannot deny payment of the indemnity on the grounds of preexisting illness.
Taking this understanding into account, consider the example of the judge who ordered the insurer to pay the insurance indemnity to the beneficiaries of an insured who died of cancer, in addition to the interest of 1% per month. The insurer claimed preexisting disease but did not undergo a medical examination prior to hiring. The magistrate pointed out that“As a result, it was up to the appellant to demonstrate conclusively that the insured when contracting the insurance, omitted information about the illness that would later confiscate his life. If it pleased, the appellant could submit it to a clinical examination, either with the objective of verifying the reliability of the information provided to it or with the scope of evaluating the risks of contracting the insurance. If he did not act in this way, even starting to receive the premium installments, he obviously assumed the risk of contracting.”