High-Risk Life Insurance

Life insurance allows you to provide funds for your loved ones after you pass away. Unfortunately, certain individuals may have trouble getting life insurance due to being rejected for being an insurability risk. However, there is an option for these individuals, and that is high-risk life insurance.

Who is Considered High Risk?

High risk is a loose definition. Someone can be considered high risk because of hobbies, lifestyle, health conditions, or occupation.

What are High-Risk Hobbies?
Dangerous hobbies include mountain climbing, skydiving, and riding motorcycles. Any of these bear the risk of devastating injury and death.

What Lifestyle Choices Indicate Risk?
High-risk lifestyle choices mainly involve the consumption of harmful substances and overconsumption of unhealthy foods. Tobacco users are particularly prone to higher insurance rates due to severe health consequences. The same also holds true for those who use illegal drugs or non-prescribed medications.

What Health Conditions are Considered High Risk?
Health conditions indicate high risk due to a guaranteed shorter life expectancy. Chronic Obstructive Pulmonary Disease (COPD), Amyotrophic Lateral Sclerosis (ALS), cancer, and even diagnosed but untreated depression can be cause for the company to label an individual as high risk.

What are Hazardous Occupations?
Risk is typically attributed to blue-collar professions or any job that requires one to enter a potentially dangerous situation. These jobs put individuals at high risk for several hours at a time. These are individuals such as electricians, truck drivers, roofers, police officers, and first responders.

What Options Do High-Risk Individuals Have?

There are a few ways a high-risk individual can get life insurance. One can elect to sign up for a term life policy. If you’re higher risk, you won’t be able to sign up for the same length of time that a low-risk person would. For example, you may only be able to get a term life insurance policy that covers you for 10 years. You can also expect a lower death benefit, which is almost always below $100,000.

If you get a guaranteed issue whole life policy, you will face a waiting period in which you pay premiums for 2-3 years before your policy will release the death benefit to your loved ones. The death benefit will be smaller, usually in the $50,000 range. Like in the case of any insurance policy, your risk will result in higher premiums.

If you have a dangerous job, your employer may be able to get group life insurance that will cover all eligible employees. This will be cheaper than the other choices.

Don’t Let Your Risk Discourage You

At Alvarado Master Agency, we believe that everyone should have access to life insurance. You deserve to be able to provide for your loved ones and help them achieve peace of mind when it comes to their expenses. With our help, you’ll get the policy you need at a price you deserve.

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