Various professions are considered dangerous and high-risk, from pilots to roofers, which can be hazardous for your loved one if you are not financially prepared for them. With a life insurance quote, if you die on the job, your policy will offer coverage to make sure that your family is safe, even without your income. But what is the possibility that you will be approved for a life insurance policy with your high-risk job? Yes, there is life insurance for high-risk applicants; however, you have to be prepared to pay higher premiums to receive wider coverage.
Moreover, when applying for a life insurance quote, the insurer or insurance provider will look into certain factors like your gender, lifestyle, medical history, and age to calculate your premium and find out where you stand when it comes to eligibility. If you are a person with no serious health issues, you will have no trouble obtaining a policy to receive coverage. On the contrary, some individuals have risk factors that make it hard for insurance companies to offer protection as they are considered high-risk. To find out factors that make you at high risk, keep reading.
How Does Life Insurance For High-Risk Applicants Work?
Life insurance premiums are usually higher for high-risk applicants, unlike those with lower risk. Additionally, insurance companies consider various factors to determine rates. Some of them include your occupation, your claim history and likelihood of filing a claim, risky hobbies, health issues, and many more.
Apart from this, these determining factors can also affect your premiums. In other words, the insurance rates for not just high-risk applicants but also low-risk applicants are calculated after these factors have been thoroughly assessed during the process of underwriting.
What Makes You a High-Risk Applicant?
As you know, various factors make an individual considered high-risk by any insurance company. Moreover, insurance companies consider people with lifestyle or health risks high-risk, making it hard for them to offer insurance.
The individual’s life expectancy is what life insurance policies are based on, unlike auto and home insurance. To determine if you are a high-risk applicant, here are the risks and factors that the insurance company will consider:
Hobbies: Risky activities like rock climbing, skydiving, or other extreme sports are seen as risky by insurance companies, therefore making it hard for them to insure.
Health Issues: Applicants with conditions and health issues like diabetes, heart disease, or cancer can be classified as high-risk.
Occupation: Your occupation or job is another factor that determines whether or not you are a high-risk individual. Thus, any job that involves physical risks, such as commercial fishing or construction work, may increase your risk level.
Lifestyle Choices: Excessive alcohol consumption, drug use, and smoking impact your risk assessment greatly.
Age and Family History: A family with a history of genetic diseases and people who are older can be considered at high risk.
Who Needs a Policy?
Before getting high-risk life insurance, it is important to determine whether you need a policy. Here are a few jobs that are seen as high-risk for a life insurance policy. They include:
- Pilot.
- Steel worker.
- Offshore oil worker.
- Truck driver.
- Firefighter.
- Construction worker.
- Logger.
- Power line worker.
- Service member.
- Police officer.
- Refuse collector.
- Ground maintenance worker.
- Farmer and rancher.
In summary, life insurance is beneficial for anyone who has dependents or financial responsibilities that could outlive them. Getting or applying for a life insurance policy can be particularly important for high-risk individuals, as it helps give your family and loved ones the financial protection they need, even with all the increased risks involved with the policyholder’s lifestyle and health.
Is High-Risk Insurance Expensive?
Yes, high-risk life insurance is generally more expensive than standard policies. This is a result of the probability of a payout for a claim filed. Hence, insurance providers or companies reduce their risks by making the premium payment higher. However, keep in mind that the cost of purchasing a high-risk insurance policy differs based on the type of insurance chosen, the degree of risk, and, more importantly, your insurance company.
How To Find Life Insurance For High-Risk Applicants
If you fall into the category of those who are considered high-risk by insurance companies, taking out an insurance policy is advisable. However, if you have no idea where to start, here are the basic steps you can follow:
- Have an understanding of your risk level.
- Consult independent and professional insurance agents.
- Search for specialized, high-risk insurance providers.
- Consider guaranteed issues and simplified issue policies.
- Explore group insurance options.
- Improve your habits and health.
- Give accurate information during the application.
- Get ready for higher premiums.
- Review regularly and compare policies.
With these steps, you should be able to get a life insurance policy as a high-risk applicant.
How To Save on a Purchase
If you have decided to apply for a high-risk insurance policy, here are some tips you can implement to save more on your purchase:
- Request discounts.
- Shop around.
- Improve your credit score.
- Consider group life insurance and term life insurance.
- Live a healthy lifestyle.
By doing the following, you get to reduce your premiums and pay less for more.
Frequently Asked Questions
Can I get Life Insurance if I have a serious Health Condition?
Yes, you can get a life insurance quote if you have a serious health condition; however, keep in mind that it may be more expensive or require extensive searching for the right insurance provider.
Will engaging in extreme Sports prevent me from getting Life Insurance?
Not necessarily, but you might need to pay higher premiums or get a special rider attached to your policy.
How can I reduce my Premiums if I am classified as High-Risk?
Improving your health, quitting smoking, or changing a risky occupation or hobby can lower your premiums. Additionally, demonstrating the management of health conditions with routine doctor visits and treatment adherence can also be helpful.