When a person either has a health condition or a lifestyle that increases their risk of passing away sooner than an average lifespan the will frequently be labeled as high risk from the life insurance industry. This adds a risk factor to the insurance company where they will charge more for that person to obtain a life insurance policy. Continue reading to learn more about all types of insurance such as Veterans Life Insurance or to read our Metlife Life Insurance review.
Most people think that by being in a high risk category that you have no chance of obtaining premium or standard life insurance rates or even being able to obtain life insurance at all. The good news is that obtaining life insurance coverage is not completely out of reach. In fact, with high risk life insurance coverage, those who have pre-existing medical conditions can oftentimes obtain the coverage that they need at very favorable premium rates. In fact today, many of the best life insurance companies in the industry are offering coverage to those who may not otherwise qualify for more “traditional” types of life insurance. Even if you are overweight, there are life insurance policies for obese individuals, so don’t let your health or weight stop you from obtaining the coverage you desire.
In order to find the best higher risk life insurance coverage for your particular needs, it is important to work with a company that can guide you to the right insurer and the right policy – as there are many different options that you can choose from today. You will also want to work with someone who will be able to answer any of the questions that you may have before moving forward with your life insurance purchase.
To help you get a better feel for how we are different than the average agency trying to churn through customers here are some of the main questions we get when people come back rated as high risk.
What Is High Risk Life Insurance?
High risk life insurance is actually just like any other type of life insurance coverage where a policy holder pays a premium in return for death benefit protection, and possibly a cash value or savings component (depending on what type of policy you purchase). The difference comes in how the policy is underwritten.
In this case, where one insurance company may use a particular set of underwriting guidelines when reviewing an applicant for coverage, another insurer may use a different set of guidelines altogether. Because of this, a person who has a pre-existing condition may be declined by one insurer, but accepted by another.
Why is that?
One way to think about it is just like any other industry in that the insurance business is very competitive. Because of that, different insurers must carve out specific customer – or in this case, policyholder – niches.
With that in mind, while one insurance company may have a focus on those insureds who are extremely healthy and can offer these individuals coverage at a very low price because they are a low risk, another insurer may opt to focus on higher risk applicants. In this case, even though the second insurer is taking on more risk, because it can charge more in premium, it can still balance out overall. The same holds true when looking at life insurance for smokers. Some compnaies avoid smokers as much as they can, charging exhorbitant premiums. Others take the extra time to evaluate each person to see what their lifestyle and habits will really do. We want you working with the company that views you and whatever has made you “high risk” in the best light possible.
It is important to note that while the premium that is charged for high risk life insurance coverage is typically higher than for more Standard policies, this type of insurance is not completely unaffordable. In fact, many insurers today are making this coverage to where it can fit into a variety of different budgets. Therefore, it definitely pays to shop around for not just this type of coverage – but the right type of higher risk life insurance coverage for your specific situation and budget.
What Type Of Coverage Should You Purchase?
With high risk life insurance, you will still have the option of choosing between term or permanent coverage. Therefore, your choice of policy will really depend upon your specific needs, and the particular risks that you are insuring for.
Term insurance will offer you pure death benefit protection, with no cash value or savings component. This type of coverage has been called the most basic, “plain vanilla” life insurance coverage that there is in the market – and it is ideal for covering temporary needs such as a mortgage or other shorter term debts.
Because there is no cash value component, term life insurance is typically cheaper than permanent insurance. The only caveat is that this type of coverage has a time limit. These policies can usually be purchased for a certain number of years such as 10, 15, or 20, and in some cases 30 (depending on your age at application).
At the end of the policy’s time limit, or “term,” if you still want coverage, you will need to reapply at your then-current age and health condition. Should you qualify, your premium will likely be much higher at that time.
Permanent life insurance provides you with a combination of death benefit protection and cash value build up. Because of this, the premium for these plans is usually higher than for a comparable term insurance policy – however, provided that you continue paying the premium over time, the amount will be locked in for life. Therefore, you could essentially keep the policy throughout the remainder of your life.
In addition, the cash value can grow on a tax deferred basis. As it builds, you can either borrow or withdraw cash to use for whatever needs you see fit. It is important to note, though, that any unpaid balance in the cash account will be charged against the death benefit if the insured dies.
You may also opt for a universal life insurance policy. These policies essentially combine a low cost term life insurance policy death benefit with a savings component. These policies offer a bit more flexibility than a regular whole life insurance policy in that you are allowed – within certain limits – to change when and how much you pay in premium.
How Do You Get better rates for term life insurance?
When dealing with someone that does not fit into to exact mold of a preferred life insurance customer you have to be willing to do extra work to make them look the most appealing to the life insurance companies. This means knowing the right questions to ask your client and the best ways to send information to the insurance companies. Finally, we work with these companies all the time so we know which ones work best for people with high blood pressure, which ones are favorable for people with sleep apnea, and which companies are great at underwriting on life insurance for pilots. By doing all this and taking the time to make sure it is done right we can get you the best life insurance rates.
What are the best high risk life insurance companies?
We work with over 60 life insurance companies that specialize in some form of life insurance for high risk individuals. While they all offer competitive rates for people that fall into the best risk categories each one has particularly good underwriting for one or several high risk categories of life insurance.
What most people do not realize is that, when it comes to the companies we work with, the best life insurance companies are the ones that will issue you a policy that meets your needs and at a price you can afford. And, if the worst were to happen, they will pay out. When it comes to high risk categories, you will need someone to help navigate the landscape of the different companies.
How do you work with so many life insurance companies?
We are an independent agency. This means we can contract with almost any life insurance company. This flexibility also means that we do not work for any one company but are able to take your information and match it up with the company that will offer the best rates on your needs. This allows us to give you options and not try to force you into a specific set of policies from one company.
Do you sell life insurance for people who are not high risk?
Absolutely! Selling life insurance for a person that has no health problems or has a very safe lifestyle is very easy. What separates us is our ability to get competitive rates for both high and low risk life insurance. Because we specialize in the high risk categories most of our low risk clients are people who are looking for life insurance for someone else. A good example would be a husband and wife who are looking for life insurance together. Since the husband has diabetes they start out with us looking at life insurance for diabetics, but we are able to gather life insurance quotes for both spouses and get great rates on both policies.. We are happy to help anyone looking to get life insurance, but what makes us exceptional is how we take care of people who get put in the high risk categories by standard underwriters.
Who is a Good Candidate for a High Risk Policy?
There are a number of individuals who may be good candidates for higher risk life insurance policies. First, those who have certain types of health conditions are certainly some who should consider this type of coverage. Today, various carriers have started to offer policies to those with even more severe health issues, such as heart disease, stroke, anxiety, depression, and bipolar disorder. This would also include someone who has recovered from a serious illness but is not past the waiting period to be cleared as normal risk. A prostate cancer survivor would be a good example of someone who might need a high risk policy.
But those with adverse health conditions are not the only ones who should consider high risk life insurance coverage. Another group of individuals that often has trouble qualifying for traditionally underwritten coverage is those who participate in activities or hobbies that are considered to be risky or dangerous such as scuba diving or sky diving. And finally people with specific high-risk occupations will also be graded into a high risk category. Those who are private pilots, loggers, commercial fishermen, and rock climbers, could be put into this category..
Therefore, there are a number of individuals who – even though they may be perfectly healthy – could still be declined by going the traditional route for life insurance coverage.
If I have already been declined for life insurance can you help?
In many cases, when a person has been declined it is because an agent has not done their due diligence in helping that person get matched with the right company and policy. So, yes, we can help. When dealing with an illness there are never any guarantees that you will be accepted but presenting your case in the best light to the life insurance underwriters gives you a much better chance of getting a policy. If you were to work with an agent that puts your general information in and does not take the time to dig and find out what will make your individual case the most appealing to the right insurance company. For example, a person looking for life insurance with multiple sclerosis can get declined pretty quickly if the agent doesn’t know which companies work best with the different types of MS. We do our homework and help match you up with companies that will treat your personal situation the best.
If you do not qualify for a policy through traditional underwriting we also work with many companies that offer no exam life insurance policies as well as guaranteed issue policies. These policies do not require you to go through the process of getting a physical and can usually be approved in less than 30 days. if we are not able to get you approved
Taking the Next Step
When you’re ready to take the next step and apply for a high risk life insurance policy, we can help. We work directly with many of the top rated life insurance carriers in the market place today – and we can help to point you in the right direction towards the companies that have a focus on higher risk cases. We can also help with more specific needs such as the best life insurance coverage for veterans, or finding the best company to work with if you are a smoker. We can help!
In addition, we can help you to compare different policy benefits, as well as premium quotes – all from the comfort and convenience of your computer – so you don’t have to meet in person with an insurance agent. We can get you the information and the quotes that you need quickly and easily so that you can make a more informed decision on this important coverage.
When you’re ready to get started, all you need to do is fill out the form on this page. If you do have any questions along the way regarding higher risk life insurance policies, how to obtain quotes, or even about life insurance in general, we’re here to help. Feel free to contact us and talk to one of our experts. We’ll get your questions and concerns addressed quickly so that you can more confidently make your life insurance choices. You can contact us, toll-free, at 888-229-7522.
Even if you’ve been turned down for life insurance in the past, it doesn’t mean that you have to forgo this protection for those whom you love. Just use the form on this page or call us now to get your loved ones protected from the unexpected today.