When you apply for life insurance, it’s the goal of the agency and underwriter to place a risk value on your application. The risk value determines
It may also mean that a person takes part in high-risk activities such as scuba diving, hang gliding or skydiving – which can also equal the potential for serious injury leading to an early death, and thus the payout of a life insurance claim.
Certain types of jobs can include police officers and firefighters, as well as window washers and crane operators, can put you in the high-risk section.
Any or all of these jobs may put an individual in harm’s way at any time – in turn, leading a life insurance carrier to having a costly claim.
Because of these higher risk cases, life insurance companies need to take additional precautions when they are evaluating such applicants – and because of that, such individuals may or may not qualify for coverage. And, even if they do, coverage may be approved on what is deemed a Substandard basis. This means that the individual is allowed to have life insurance coverage – but it is approved at either a lesser amount of death benefit, a higher amount of premium price or both.
Life Insurance Carriers That Underwrite Higher Risk Applicants
The good news is that there are several life insurance companies that may be better suited to take on applicants who are higher risk. Some of the life insurance companies that may be a better match for applicants who are considered to be higher risk can include the following:
The Farmers simple term insurance coverage starts with a death benefit of $75,000, and it is convertible to lifelong coverage that will build up a cash value – regardless of the insured’s future health status. There is also a value term life insurance option that provides affordable life insurance coverage with premiums that are guaranteed not to increase for 10 years, 20 years, or 30 years. This plan has a death benefit that begins at $150,000.
Farmers also offers a simple whole life plan that provides a simplified underwriting option, as well as a graded death benefit whole life insurance plan. With this plan, there is no medical exam required for underwriting, but rather just three simple health questions to determine a person’s eligibility for the coverage.
American General Life Insurance Company
American General Life Insurance Company was established in 1960. However, even though it is a relatively new company regarding life insurers, it still ranks as one of the top life insurance carriers in North America. The firm has customer service centers across the country to help in serving their producers, as well as the company’s customers.
American General offers some different life insurance products to choose from burial life insurance to permanent life insurance. The company also offers options for no medical exam policies. Also, group life insurance policy options are also available for businesses that are providing life insurance coverage for their employees.
AAA Life Insurance Company
Although you may think of AAA as more of an auto and homeowners insurance company, this insurer also writes life insurance coverage. The company offers an Express Term life coverage option that can be purchased in just three easy steps. Once these steps have been completed by the applicant, the policy may be able to be approved in just a few short minutes online.
There is no medical exam that is required – and the coverage amount begins at $25,000 and it can go up to $250,000 in amount. The policy durations may be 10 years, 15 years, 20 years, 25 years, or 30 years, and the premium payment amounts are guaranteed to remain level throughout the coverage term. Those who are already AAA members may also be able to receive a discount on their premium amount. Those who are between the ages of 18 and 75 may apply.
Only a few health-related questions are required to be answered by the applicant regarding qualifying for the insurance – and, even if you are approved, if you are not fully satisfied, you have 31 days after your policy approval to cancel and receive your money back.
New York Life Insurance Company
New York Life Insurance Company also offers several options for those who are high-risk individuals. These include the following:
- Simplified Term Life – The Simplified Term Life option is designed for shorter-term needs. It provides life insurance for a set period with coverage amounts of up to $100,000.
- Simplified Whole Life – This option is coverage that can be kept for one’s entire lifetime – provided that the premium is paid. It offers coverage up to $50,000 in amount.
- Guaranteed Acceptance Life – This option is also coverage that will last for one’s entire lifetime, with protection of up to $15,000. There are no health or lifestyle questions such as if you are seeking life insurance as a smoker, to answer on the application for coverage, and no medical exam to undergo for underwriting purposes.
Types of High-Risk Life Insurance Coverage
If you’re a high-risk applicant because of health, hobbies or a job, there is a chance you’ll be rejected. This is common for people buying underwritten plans.
This means that you may have gone through the regular channels of applying for life insurance coverage, taken a medical exam, and then been deemed as being “too risky” for the life insurance company to take on as an insured policyholder.
Even if that is the case, there is good news – and that is you still have options. There are other types of high-risk life insurance coverage available – options that do not require taking a medical examination to qualify. These include the following:
- Simplified Issue – With simplified issue life insurance, an applicant will typically just answer a few health questions.
- Guaranteed Issue – A guaranteed issue life insurance policy will have no medical questions on the application, as well as no medical examination required.
- Accidental Death – Because guaranteed issue policies only allow a certain amount of death benefit, adding an accidental death and dismemberment rider can be a great way to add additional coverage.
Obtaining Life Insurance Quotes for High-Risk Individuals
If you’ve received a rejection, you might consider just going without life insurance. However, doing so could leave your family or other loved ones at a great amount of financial risk should the unexpected occur.
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 often qualify for reasonable rates.
Life insurance companies realize that not every applicant fits into their “molds,” and there is a lot of customers who are high-risk, but would still make great customers.
A high-risk insurance agent 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.
Even though all life insurance companies will have some type of application process for those who want to have coverage, the reality each carrier underwrites their plans differently.
For example, what may constitute a decline for one insurance company may be acceptable to another.
This is how we can help. We can show you the best carry for your risk needs and also help you answer some of the difficult questions:
- Which type of coverage is best for you – term or permanent?
- How much coverage is right for your personal needs?
- Which carrier will be the best for you?
When you are ready to move forward, we make the process quick, easy, and convenient as well, by getting you the information directly via your computer.
You don’t want to leave those whom you care about unprotected. We can help you to obtain the right coverage at a premium price that is right for you and your budget needs. Call us or use our quote form.