What is high-risk life insurance?

Many people look into purchasing a life insurance policy only to find that many companies do not offer insurance plans to them due to pre-existing conditions or other risk indicators. When a person is considered a higher risk to insure, they may find that policies are harder to come across. In some cases, being high-risk is due to a below-average level of health. There are numerous other reasons a person can be considered high risk, however. A person can be high-risk if they have a hobby or profession that puts them in life-threatening situations. When people are classified as high risk, the premiums they will need to pay for a life insurance plan will be higher on average. In order to get the best affordable life insurance plan available, it is recommended to compare policies from multiple companies. By getting free quotes from multiple insurance providers, you can get the best prices for life insurance plans that suit your needs. The tools on this website will help you get the best rates for life insurance plans available, but you should still read on to get more information about what high-risk life insurance is, how high-risk life insurance works, and how high-risk life insurance rates are determined.

What Is High-Risk Life Insurance?

High-risk life insurance plans are available for people who are classified as being more risky to provide insurance to. If you have been asked to pay more than you expected for a life insurance plan, or have been declined for a life insurance policy due to a high-risk medical condition, the best piece of advice is not to give up. Using the tools on this website, you can get quotes for affordable high-risk life insurance plans. 

How Does Being High-Risk Affect Life Insurance?

Being classified as high-risk does have an effect on your life insurance plan. First, you may end up paying higher rates for life insurance policy. Even so, many people in a high-risk category find insurance rates that are affordable and suit their needs. Each person looking to get a life insurance policy should determine the reasons they are getting a plan. Some people determine that paying for funeral expenses and leaving all little bit of money for their loved ones is their main goal. Other people are looking for policies that offer more benefits to help a surviving parent pay for college or mortgage.

It is also possible that a person will be only offered limited coverage options in terms of policy size. Each company will look at your situation using different formulas, so make sure to get at least five life insurance quotes before choosing a plan if you are considered high risk.

Another way that people can be affected when classified as high-risk by a life insurance provider is that the number of policy types they are offered may also be limited. Some companies will only offer permanent life insurance plans for people in this category. Most other categories will see both term life policies and whole life policies offered.

Can I Buy Life Insurance If I Am Considered High Risk?

Fortunately, if you are in a high-risk category, you can still often purchase life insurance plans. If you are considered high-risk, your options might be limited though. In addition, it is likely will pay higher rates on your premiums. Your high-risk status gets determined by numerous factors. These include lifestyle, health, fashion, hobbies, habits, and more. With so many variables, each insurance company has its own formula. It is possible that for some conditions, you may be considered high-risk for one company, but not for another. The only way to determine policy offerings and rates is to compare life insurance companies.

Keep in mind that the biggest difference between standard life insurance plans and high-risk life insurance policies is the cost. People who are considered high-risk have a projected life expectancy that is lower. This means a larger financial risk for the insurance provider as the death payout on the policy will likely be paid sooner than with a person who is not considered high-risk.

How Are High-Risk Life Insurance Rates Determined?

Many variables are used to determine life insurance rates, and it is not different with high-risk life insurance policies. Everything from a person’s health to their lifestyle, their profession to their hobbies, and more, can be used to determine how much they will pay. Insurance companies thrive on statistics.

Working a dangerous job can put you in a high-risk category. If there is a higher likelihood that you will pass away while you are doing your job, you're more of a risk for insurance companies overall. Jobs like commercial fishermen have a higher death rate on the job than many other professions. While still in a dangerous work situation, roofers have a lower percentage chance of passing away on the job in comparison, and can often get life insurance from some providers. Other professions that are considered high-risk include underground miners, construction workers, steelworkers, ranchers, and farmers.

Does Your Employer Offer Group Insurance Plans?

If they do, and you are having a hard time getting individual coverage, the group insurance plans your employer offers may be a good idea. If your employer offers life insurance coverage with no additional cost, there is no reason not to sign up for the policy. Some people choose to get supplemental life insurance coverage if the basic policy offered by their employer does not meet their financial obligations and if carrying a separate policy altogether is not possible.

Diseases And Habits That Are High Risk

High-risk diseases are often considered pre-existing conditions, and habits can also give insurance companies a look into the risk providing you with a policy brings them. Heart disease, a history of cancer, kidney disease, high cholesterol, and numerous other pre-existing conditions can be reason for denying a person a policy. That said, there are generally companies out there that will offer policies to suit your needs. You may end up paying more on average than someone without a pre-existing condition, but the financial protection that life insurance plans offer is highly beneficial.

Habits that life insurance providers consider include chewing tobacco, smoking cigarettes, some extreme sports, and more. Each insurance carrier has their own risk tolerance with specific diseases, conditions, hobbies, and habits. In some cases, a person can get statements from their physicians in order to be considered for a policy when they might not otherwise. The best thing to do is to compare policies from multiple companies, which you can find quickly and easily on this website. Make sure to be honest about your pre-existing conditions, high-risk habits, profession, and other questions you will be asked. Lying on questionnaires or during medical exams can be reason for a life insurance company to deny a claim or cancel your policy.