What is High Risk Life Insurance?
High-risk insurance is a specialized type of coverage designed to meet the needs of individuals who are considered higher risk due to health conditions, occupations, or lifestyle choices. While it comes with higher premiums and potential limitations, it offers essential financial protection and peace of mind for those who might otherwise struggle to obtain insurance. Working with an experienced insurance professional and taking proactive steps to mitigate risk factors can help secure the best possible coverage and rates.
What is considered High Risk?
High-risk insurance, is designed for individuals who are considered a higher risk to insure due to various factors such as health conditions, lifestyle choices, occupations, or hobbies. Here is an in-depth look at high-risk insurance, including its features, types, advantages, and considerations.
Professions
People in high risk professions include but are not limited to underwater welders, police officers, roofers, firefighters, etc.
Hobbies
While your profession may not be high risk but your hobbies could be such as skydiving, suba diving, racing cars, or flying planes.
Habits
Some of your habits may be considered high risk such as smoking cigars or cigaretts, or chewing tobacco.
Diseases
If you have been diagnosed with a serious or life threatening disease. The CDC estimates that more than half of the U.S. population have a chronic health condition. Many more than that, have a health risk that may lead to a chronic health condition.
Pre-existing Medical Conditions
- Cancer
- Heart Disease
- Stroke
- Overweight
- Sleep Apnea
- Depression
- High Blood Pressure
- High cholesterol
- And/or Diabetes
Types of High-Risk Life Insurance Policies
- Term Life Insurance: Provides coverage for a specified term. It is often the most affordable option but may have higher premiums for high-risk individuals.
- Whole Life Insurance: Offers lifetime coverage with a cash value component. It may be more expensive but provides permanent protection.
- Guaranteed Issue Life Insurance: No medical exam required and approval is guaranteed. It usually has lower coverage amounts and higher premiums.
- Simplified Issue Life Insurance: Requires a health questionnaire but no medical exam. It is less expensive than guaranteed issue but may have more limited coverage.
Who Needs High-Risk Life Insurance?
- Individuals with Health Conditions: People with chronic illnesses such as diabetes, heart disease, or cancer.
- Smokers: Tobacco users generally face higher premiums and may be categorized as high risk.
- High-Risk Occupations: Jobs that are inherently dangerous, such as pilots, construction workers, or firefighters.
- Hazardous Hobbies: Activities like skydiving, scuba diving, or rock climbing increase the risk and the cost of insurance.
- Older Applicants: Age can be a factor, especially for those with declining health.