What is high-risk life insurance?
High-risk life insurance refers to life insurance designed for people with a higher than normal risk of injury or death. A high-risk policy takes into account lifestyle, occupation, medical conditions and medical history. An insurer has the right to look into these details and determine whether the person is high-risk.
Some insurers do not offer plans for high-risk customers while others will offer specific plans for such people. Regardless of this, if a person is determined to be high-risk, insurance premiums will increase.
Who needs high-risk life insurance?
High-risk life insurance is targeted at people with a higher than average likelihood of making a claim because of medical, job or lifestyle factors. When buying insurance, an insurance expert will evaluate these factors to find out if you are high-risk. Here are some situations where you'd consider high risk life insurance:
- Serious medical conditions or a history of medical conditions. Illnesses such as cancer, diabetes or hypertension can qualify, as can obesity.
- High-risk occupations. Working in jobs like commercial fishing, mining or heavy industry.
- A history of alcohol or drug abuse. Smoking, drinking and drug use can place you as a higher risk applicant.
- Frequently engaging in dangerous lifestyle activities. This can include boxing, contact sports, racing or extreme sports.
Will I have to pay more for high-risk life insurance?
With the exception of a few cases, high-risk insurance will cost more than standard insurance.
The insurer has to take into account that you have a higher than normal chance of making a claim, and as a result, the premiums will be higher. How much so can depend on a number of factors and will be determined by experts who manage risk.
If you are high-risk because of a medical condition you may have to go through an examination. Age, weight, smoking status, occupation and lifestyle can all play roles in determining the price of a high-risk policy.
Will all brands offer high-risk insurance?
Not all brands offer high-risk insurance. Some brands will decline standard insurance if they determine that a person is high-risk, whereas other companies will increase the premiums to account for the higher risk. There are some brands that specifically target high-risk individuals and offer guaranteed coverage.
How do I qualify for standard life insurance in order to spend less?
It is possible to qualify for standard life insurance at a future date, thus decreasing your life insurance premiums.
The easiest way to do this is by addressing the problems that make a you high-risk. For example, if you are high-risk because of smoking it will help if you quit, or if you are high-risk because of a weight problem it can be beneficial to trim down. Find out why you are high-risk and work on ways to improve your situation – it can affect your health and your wallet in the long term!
Some insurance brands offer rewards programs to not only help you improve your health, but to also help you achieve a lower life insurance premium.
Questions to ask when applying for high-risk life insurance
When you are applying for any life insurance product, there are certain questions you should ask.