A Guide To Finding Affordable Life Insurance For High-Risk Individuals

Insurance policies are one of the most effective and cost-efficient ways to protect yourself from the risk of financial losses or even health-related problems. These policies serve as a blanket covering either a person or any insured asset.

Life insurance is one of the most popular types of insurance. With life insurance policies, you pay a stipulated fee to your preferred insurance company over some time, and the insurer agrees to pay the beneficiary an agreed fee upon the insured’s death.

Life insurance is a very reliable investment, but not everyone is successful in getting approved for insurance coverage. And even if they eventually get approved, they might have to pay extremely high premiums coupled with lower coverage.

Applying for life insurance is usually a relatively straightforward process when you’re in good health. However, for an individual who is considered “high risk,” it might be a lot more complicated. High-risk individuals are people who are considered at increased risk to insure. 

Several factors classify an individual as high-risk, and we’re going to be discussing some of the most prevalent factors in this article. This article will provide you with a complete guide to finding affordable life insurance for high-risk individuals and will help you spot best high risk life insurance companies

What is High-Risk Insurance Policy

High-risk careless lifestyle is a type of life insurance for people with increased insurable risk. To be classified as a high-risk individual, you need to meet a few conditions, and these conditions range from job type, underlying health conditions, hobby, driving history, and a lot more.

These factors allow the insurance companies to calculate your premiums and the policy terms accurately. The premium paid by high-risk individuals is always higher than the average person. 

Can you Purchase Life Insurance if you’re Classified as High-Risk?

This is one of the most crucial questions you’d probably ask. And the answer is yes; you can purchase life insurance even when you’re classified as a high-risk individual. Policies covering high-risk individuals vary depending on the severity of the risk involved with the individual.

Usually, purchasing life insurance for a high-risk individual would attract premiums significantly higher than standard insurance policies, and you will often be offered low coverage.

What Classifies an Individual as High Risk

Numerous factors work together to determine an individual’s insurance status. The one thing you should have at the back of your mind is that the higher your insurance risk, the higher your premiums. Here are some of the factors that determine insurance risk:

1. Health Status

When purchasing life insurance, your health status plays a major role in determining if you are high risk or not. Most life insurance policies require the insured to run a full medical examination or answer a couple of questions on your health.

People with chronic or terminal diseases will see a spike in their insurance rates because they are at high-risk. Any condition that reduces your life expectancy automatically increases your insurance premiums. 

Health conditions like Dementia, Cancer, ALS, Heart Disease, Kidney Disease, Organ Transplant, etc., will likely increase your insurance rates. 

2. Occupation

Another influential factor determining whether you’re a high-risk individual is your occupation. Most insurance companies classify jobs based on mortality rates. For example, jobs like fishing, roofing, hunting, and even flying aircraft are all considered high-risk occupations,

Your premiums will likely be higher if you’re in these fields. 

3. Hobbies

Your hobbies can also determine if you will be qualified as a high-risk individual. Some folks have harmful hobbies that often put them in danger; insurance companies don’t take this because repeating such pursuits could eventually lead to death or severe injuries.

Regular hobbies like baking, playing piano, or even jogging result in minor or no injuries throughout your lifetime. However, hobbies like scuba diving, surfing, mountain climbing, motor racing, and many more are dangerous and life-threatening activities.

The insurance company might overlook such activities if you do them once in your life or twice. Still, if you execute such hobbies frequently, you’re automatically classified as high-risk.

4. Habits

This is pretty similar to hobbies but has a slight difference. High-risk habits are unhealthy lifestyles that you’ve gradually grown accustomed to over time. Habits like chewing tobacco, vaping, smoking, etc., can reduce your insurance coverage or even deny you entirely.

How to Find Affordable Life Insurance for High-Risk Individuals

You might already be classified as a high-risk individual by your insurance company, but there are a few tips you can use to help you get the best premiums. They are:

1. Improve your Health

Life expectancy plays a huge role in determining your life insurance premiums. If you’re living with a manageable health condition, your premiums would be significantly lower than those living with a terminal disease.

For example, if you have high cholesterol, you can work closely with your doctor to help prescribe the best medication to help you reduce your cholesterol level. This way, your health improves, and you also get lower premiums; it’s a win-win.

2. Compare Prices of Different Companies

No matter how high-risk an individual is, you’re likely to find a couple of insurance companies who would take the risk to insure you. When you receive the offers from these companies, don’t just go with the first one.

Compare the prices, terms, and conditions of the different companies. You will indeed find a company that offers you the best premiums.

3. Consider a Change of Lifestyle

If you have harmful habits or live a very careless lifestyle, improving your habits would help reduce the risk associated with your policy. If you’re not living with any underlying medical condition, you have a greater chance of getting lower premiums because your risk can easily be reversible with the right attitude.

If you frequently engage in scuba diving and surfing, you can double down on the rate you engage in such activities. After a few audits, your insurance company will notice your newly-changed behavior and consider lower premiums.

Conclusion

Having a good insurance policy is probably one of the best decisions you’ll take in your entire life. However, finding the right policy isn’t always easy, especially for high-risk individuals. Luckily, our guide has helped clear a path for you to know the best ways you can purchase life insurance for high-risk individuals.