Yes. If you die of a natural cause such as cancer, your life insurance will cover you and offer your family the lump-sum payout you have been assured for. However, that's given that you have been honest and regularly updating your insurance agent and company of your medical conditions, such as the diagnosis of cancer, and any related pre-existing conditions etc. Also, you will only be eligible for your payout if your death was purely caused by cancer and you didn't participate in any high-risk, dangerous activities such as bungee jumping, scuba diving etc. that may have resulted in your death. If you have been diagnosed with a terminal cancer (given less than 12 months to live)< check your life insurance policy to see if terminal illness is included in the default list of benefits. If it is, you may be able to get your full payout.