How To Get Life Insurance With a Terminal Illness in 2025 [Follow These 5 Steps]

You might be thinking, “How to get life insurance with a terminal illness?” The way to qualify is through guaranteed issue policies or group coverage, as traditional insurers often decline applications.

Some providers approve up to 90% of high-risk applicants, ensuring financial support for loved ones. Life insurance for terminally ill patients helps cover final expenses, outstanding debts, and the cost of end-of-life care.

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5 Steps to Get Life Insurance With a Terminal Illness

Getting life insurance for a terminal illness is difficult but not impossible. Knowing the options and proceeding with a structured plan can lead to coverage that fits the bill. It is a step-by-step guide to getting life insurance despite a terminal condition and securing loved ones’ financial future.

Step #1: Find a Guaranteed Issue Policy

Guaranteed issue life insurance usually works best for someone with a terminal illness since no medical examination or health questionnaire is necessary. It provides limited coverage, typically up to $50,000, with a graded death benefit, meaning full benefits may not be available until after a waiting period.

Its importance lies in offering financial support when traditional policies are not an option, ensuring beneficiaries receive some compensation.

Step #2: Ask a Specialized Insurance Agent

Consulting with an insurance agent specializing in high-risk cases can greatly improve your chances of securing coverage. Understanding how to find a life insurance advisor ensures you connect with experts who have access to insurers covering individuals with serious health conditions. Their guidance helps navigate complex underwriting and find the best policy options.

Step #3: Consider Accelerated Death Benefits

Certain life insurance policies include an accelerated death benefit (ADB) rider, allowing terminally ill policyholders to access a portion of their death benefit before they pass away. Understanding the life insurance death benefit in your policy is crucial, as this feature can help cover medical expenses, hospice care, or other financial needs without requiring a new policy.

Step #4: Look into Group Life Insurance

Association-sponsored or employer-group life insurance policies can provide coverage without medical underwriting. But what are the benefits of buying life insurance? These policies offer an opportunity for coverage, even for standard life insurance, ensuring financial protection for loved ones. Qualifying for group plans through an employer, union, or professional association can be essential to financial stability.

Step #5: Prepare Essential Documentation

Buying life insurance for a terminal illness requires preparing necessary documents, such as medical reports, doctor’s statements, and income verification. These documents help insurers assess risk, as understanding how life insurance companies make money involves balancing premiums and payouts. Having all documentation in order can ease approval and prevent possible delays.

Following these guidelines, persons with a terminal illness can consider available life insurance options and provide their loved ones with financial security.

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Life Insurance Options for Individuals With a Terminal Illness

Getting permanent life insurance is usually straightforward, but for those with a terminal illness, finding coverage can be more challenging. Insurance companies classify terminally ill individuals as “high risk,” limiting options.

However, policies like guaranteed issue, simplified issue, and final expense insurance provide alternatives, though they often come with higher premiums, waiting periods, or lower payouts.

Eligibility Criteria for Life Insurance with Terminal Illness

Depending on eligibility, permanent life insurance, group life insurance, and convertible term policies may offer solutions. Some policies include a terminal illness benefit, allowing early payouts to ease financial burdens.

Additionally, terminal illness coverage from Legal & General provides options tailored for those facing serious health conditions. The table below outlines the eligibility, limitations, and key details for various life insurance policies available to individuals with terminal illnesses.

A Terminally Ill Person Can Get Life Insurance

Yes. The good news is that a person with a terminal illness like cancer or other serious or chronic medical conditions can get life insurance. The not-so-good news is that the choices for life insurance for this “high-risk” group of people are fairly limited.

Here are the most common types of life insurance for people who are considered high-risk because of a terminal illness or other serious health reasons:

• Guaranteed issue/guaranteed acceptance life insurance
• Funeral expense life insurance
• Final expense life insurance

We’ll examine each of these options in detail to help you decide which is best for your situation.

Guaranteed Issue Life Insurance Explained

Guaranteed issue (GI) life insurance, sometimes called guaranteed acceptance insurance, is probably one of the best high-risk life insurance options for people with serious health issues or medical conditions.

GI life insurance is based solely on age, location, and gender. There are no health questions asked. Even better, GI policies typically have no age limits or waiting periods. 

So, you may be asking, what’s the catch? GI life insurance has a limited death benefit. GI policies typically have a $25,000 maximum death benefit.

Also, GI insurance tends to be expensive. Insurance companies charge higher rates for GI policies because of the higher risk they are taking by insuring someone without any medical information.

But let’s get back to some good news: Because GI life is a type of permanent whole life insurance policy, these policies have cash accounts that can be used to build up a cash value from a portion of your premiums.

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Also, like other permanent life insurance policies, GI life does not have a set end date. Instead, coverage lasts as long as you continue to pay the premiums.

With features like no medical exams, waiting periods, or age limits, GI life might be the best choice for high-risk individuals or the elderly, making getting standard life insurance difficult or, in some cases, impossible.

Funeral Expense Life Insurance Explained

There are two types of funeral expense life insurance. Burial insurance is the first type of funeral expense life insurance.

Burial insurance offers a modest death benefit, often between $5,000 and $25,000, to cover funeral, burial, or cremation expenses.

The second kind of funeral expense life insurance is called preneed funeral insurance. This type of life insurance is different because it directly pays the funeral service provider the death benefit, helping to manage costs.

How much do funerals cost? With rising expenses, a life insurance terminal illness payout can ease the financial burden. A life insurance policy for terminally ill individuals ensures coverage for end-of-life arrangements.

Final Expense Insurance Explained

A final expense insurance policy is similar to funeral expense insurance, except that coverage isn’t limited to funeral costs. It also includes burial insurance for seniors and can help cover other end-of-life expenses, such as medical bills or legal fees, making it a valuable option for life insurance for a terminally ill parent.

Life Insurance for a Terminally Ill Person is Expensive

Insurance companies base the price of policy premiums on various risk factors. The riskier the person seeking insurance, the more expensive the insurance premiums. 

Here’s a chart that shows the average monthly costs of final expense insurance by gender.

Average Monthly Rates for a $10,000 Final Expense Policy

 

The chart above shows that final expense life insurance premiums increase with age. However, speaking with a knowledgeable life insurance broker or agent is important to find the best policy for your needs. If you’re looking for life insurance for cancer patients, consider companies specializing in high-risk coverage.

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Life Insurance Policy Riders Explained

Sometimes, life insurance policies require an exclusionary rider for terminal diagnoses or pre-existing medical conditions. An example would be a cancer rider, which excludes payment of the policy proceeds if the death is caused by cancer.

According to the American Council of Life Insurers, some riders allow you to access your life insurance benefits while you’re alive, like accelerated death benefit riders or living benefit riders. These types of riders allow you to receive some of your death benefits early to help you pay for medical or living expenses or hospice and related costs to make you comfortable until the end.

Case Studies: Life Insurance for the Terminally Ill

These real-life cases highlight how individuals diagnosed with terminal illnesses navigated life insurance options to secure financial stability and peace of mind for their families.

Case Study 1: John’s Story

John is a 55-year-old individual who has been diagnosed with stage 4 cancer. Knowing the challenges of obtaining life insurance with a terminal illness, John explored his options and discovered guaranteed issue (GI) life insurance.

Despite his health condition, John was able to secure a GI policy that provided him with coverage without any health questions or medical exams. While the death benefit was limited to $25,000, he wondered, “Can you have multiple life insurance policies?” to ensure better financial security. John found comfort in knowing that his end-of-life expenses would be covered.

Case Study 2: Sarah’s Journey

Sarah, a 62-year-old woman, faced difficulty in finding life insurance coverage due to her terminal illness. After researching different options, she came across funeral expense life insurance.

This type of policy offered a modest death benefit of $15,000, specifically intended to cover her funeral, burial, or cremation expenses. Sarah wondered if she could get life insurance with a pre-existing condition. By opting for funeral expense life insurance, she ensured her family would not have to bear the financial burden of her final arrangements.

Case Study 3: Mark’s Experience

Mark, a 68-year-old individual, had a pre-existing medical condition that made it challenging for him to obtain traditional life insurance. However, he discovered final expense insurance, which provided broader coverage for various end-of-life expenses, including medical costs and legal fees.

Mark found a policy with the right life insurance face value, giving him peace of mind knowing his loved ones would be financially supported when he was no longer there.

Navigating Life Insurance Options for the Terminally Ill

You can get the life insurance you and your family need, even if you’re terminally ill. However, your options may be limited to guaranteed issues, funeral expenses, and final expense policies. Understanding the difference between a life insurance agent vs. a life insurance broker can help you find the best life insurance cancer payout.

If you’re traveling, consider travel insurance for someone with terminal cancer to ensure coverage for medical emergencies. Find affordable life insurance coverage in minutes—just enter your ZIP code to explore your options.

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