Can Life Insurance Companies Drop Cancer Patients?

No, a life insurance company can only void a life insurance policy if there was material misrepresentation on the part of the insured person.

A material misrepresentation of the facts refers to a misstatement on an application for life insurance coverage, of a material fact. A material fact refers to a fact that, had the life insurance company known the truth, the insurer would have either refused to issue the life insurance policy, or would have issued it in a different amount or on different terms; such as, high premiums.

Usually, once a life insurance policy has been "In Force" for two years, the "Incontestability Clause" prevents the insurer from relying upon a misrepresentation of fact to rescind (void) the life insurance policy.

Therefore, once the 2 year period expires, the insurance company is liable on the life insurance policy even if the ultimate cause of death is cancer. That, of course, presumes that the insurance policy is in force at the time of death of the insured person.

Learn about life insurance for cancer patients