insure. You could be considered a high risk if you have a profession or hobby that puts you in life-threatening situations. Also, insurance companies can consider you a high risk if you have below-average health. Insurance companies can vary greatly on how they classify high risk. Once classified as a high risk to insure, you may be subject to higher rates. Therefore, to find the best affordable life insurance, we recommend getting quotes from a variety of insurers.
- How Does Being Classified as High-Risk Affect Life Insurance?
- Can I Buy Life Insurance if I Am Considered a High Risk?
- How Are High-Risk Life Insurance Rates Determined?
- Choosing the Best High Risk Life Insurance Policy
How Does Being Classified as High-Risk Affect Life Insurance?
The status of being a high risk to insure can have some effects on the cost of a life insurance policy. You may also encounter limited coverage options with regards to the size of the policy available, as some insurers will deny applications for specific types of risk. For example, if you are a senior above the age of 81, then many insurers will not offer coverage unless you have no health issues.
Finally, being classified as a high risk can change the types of policies that are available for you to purchase. For example, if you are placed into one of the highest-risk categories, then AIG only offers permanent life insurance policies. But, for all other health classes, both term and whole life policies are available.
Can I Buy Life Insurance if I Am Considered a High Risk?
You can purchase life insurance if you are considered to be high-risk, but your coverage options may be limited and you will likely have to pay higher rates. Also known as impaired risk insurance, your high-risk status will be determined by several factors, including your health, lifestyle, profession, habits and hobbies. Exact classifications will differ among insurance providers, but these factors help insurers decide whether an applicant is considered high-risk.
The largest difference between high-risk life insurance and normal life insurance will be in the cost of coverage. If you are classified as high-risk, then the insurer’s projected life expectancy for you will be shorter. Therefore, you will pose a larger financial risk to the insurance company since it will need to pay out the death benefit sooner than it would for a person without high-risk factors.
Life Insurance for High-Risk Occupations
A dangerous occupation may put you in the high-risk group because there’s a chance you’ll pass away while doing your job. For example, 23% of commercial fishermen are fatally injured or die on the job, according to the Bureau of Labor Statistics (BLS) Census of Fatal Occupational Injuries. This is the highest among all occupations and is a reason insurance companies almost always reject applicants with this profession. On the other hand, roofers have a lower fatal work rate and may be able to find life insurance from some providers.
Some examples of high-risk professions include:
- Underground miners
- Farmers and ranchers
- Commercial fishermen
- Construction workers
- Roofing specialists
It is important to note that not all life insurance companies have the same definition of dangerous occupations. During the underwriting process, an insurer will ask you questions about the day-to-day activities you perform at your job along with the working environment. This will allow the company to evaluate the key risks of your occupation.