High-Risk Life Insurance
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Way.com: Find the Best Life Insurance Company
No Medical Exams
100% Online
Get estimates in seconds
4.9/5 Rating on the App Store
Key Takeaways
A different occupation comes with an associated risk factor, a risky health condition; if you are regularly involved in adventurous sports like sky diving and bungee jumping and the habit of smoking, then there are chances for you to fall into the high-risk category. This is because life insurance premiums are calculated based on life expectancy and the factors directly or indirectly related to life expectancy.
Life insurance companies consider such individuals high-risk and categorize them under it. Therefore, high-risk life insurance is the life insurance offered to those who are at risk to insure according to the insurance company. Even though the risk factors can vary with the companies, several health, medical, lifestyle, and health factors influence high-risk insurance.
Your occupation can be a primary reason for you to be labeled high-risk. According to insurance companies, here is a list of professions and situations that can make you high risk.
| High-Risk Jobs | Reason |
|---|---|
| Military Personal | Considered high-risk if they're deployed to a country with a State Department warning, can't disclose their deployment location, are likely to see combat, or are in Special Forces, Rangers, SEALS, Marine Force Recon, Marine Raiders, Delta Force, Air Force Pararescue, or a similar unit. |
| CEO and CFO | If you're a CEO or CFO running a foreign business and spend more than six months outside the US or Canada, your coverage may be limited in the countries you operate in. |
| Commercial Pilots | Insurers have more stringent requirements for commercial pilots due to the higher perceived risk. To determine the level of insurance risk, they will collect the details on whether you fly internationally or domestically, if you are a commercial pilot or an occasional pilot. |
| Delivery Drivers | Some activities, like delivering hazardous items, may limit your life insurance selections or raise costs. |
| Divers | Scuba diving on vacation won't affect your life insurance rates unless your health puts you in danger. However, rescue divers may be considered high-risk and charged higher insurance based on the frequency and place of work and the type of dive. |
| Firefighters | Firefighters who fight wildfires or firefighters whose jobs require them to do dangerous things like smoke jumping will have to answer more questions to obtain life insurance. |
| Jobs in the Marijuana Industry | Working in the marijuana industry is a high-risk legal activity, which may limit your life insurance alternatives. |
| Medical Professionals | While the occupation of doctors and nurses is not considered risky, if you are involved in traveling and out of the country for more than six months, in case of volunteering, then, you are considered high risk. |
| Oil refinery workers | Insurance companies view oil refinery workers as high risk due to the harmful substances at the refineries, making them risky. Exposure to these substances is linked to cancer, heart disease, and blood issues. |
| Police officers | Some police officers might be seen as a bigger insurance risk than others. For example, if you are a municipal police officer, your job might not greatly affect how much your life insurance costs. But your rates might be higher if you do undercover work or are on a Special Weapons and Tactics (SWAT) team. |
| Veterinarians | Veterinarians, like other healthcare professionals, may be considered high-risk by insurance. Your coverage may be limited if you're a vet who frequently visits nations on the Department of State's "Do Not Travel" list. |
After completing your life insurance application, a health rating and risk level will be assigned to your policy. The answers you give to the questions regarding your health and lifestyle and the results of any medical examinations you may have had will impact these two aspects. The life insurance company's rating determines the amount of the premium you are required to pay.
For instance, high-risk applicants are given a table rating, and the risk is calculated accordingly. A table rating is given to people who are at high risk. Applicants with table ratings are given a letter (A–P) or a number (1–16) that tells how much more they should pay. The letter or number represents a percentage over the average premium, and each rating on the table goes up by 25% after the first one.
For instance, someone with a rating of 1 or A will pay 25% more than the average price. A person with a rating of 5 or E would pay 125% more than the average premium rates.
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|
||
|---|---|---|
| 1 | A | 25% |
| 2 | B | 50% |
| 3 | C | 75% |
| 4 | D | 100% |
| 5 | E | 125% |
| 6 | F | 150% |
| 7 | G | 175% |
| 8 | H | 200% |
| 9 | I | 225% |
| 10 | J | 250% |
| 11 | K | 275% |
| 12 | L | 300% |
| 13 | M | 325% |
| 14 | N | 350% |
| 15 | O | 375% |
| 16 | P | 400% |
The life insurance rates are determined based on the table rating system. The higher the rating, the higher the premiums you will pay. There is a possibility that you will not be eligible for standard underwritten coverage if you are regarded as a high underwriting risk.
Guaranteed acceptance life insurance is an alternative to regular underwritten coverage that may be available if you cannot obtain coverage elsewhere. The policy does not need any medical checks or questions about your lifestyle, and the premiums are determined by your age, location, and gender.
Here are the factors that are considered high risk for life insurance. It includes medical risk factors, lifestyle factors, and severe health conditions.
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|
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|---|---|
| Types of cancer |
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| Chronic conditions |
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| Heart attack |
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Here are the lifestyle factors that are considered high-risk.
| Risk Class | What it means |
|---|---|
| Preferred Plus |
|
| Preferred |
|
| Standard |
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| Substandard |
|
| Preferred Tobacco |
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| Standard Tobacco |
|
Life insurance premiums will be costlier for a high-risk applicant. With the high premium, one can opt for term insurance for a specific period or policies that suit your condition. For instance, if you have a history of cancer, then guaranteed issue life insurance is right for you as it doesn't require a medical examination. Similarly, group life insurance offered through employers and simplified issue life insurance can be the options for high-risk applicants.
| High-Risk Life Insurance | Traditional Life Insurance |
|---|---|
| For high-risk individuals | For low-risk individuals |
| Offers coverage to individuals who may be denied traditional life insurance due to their high-risk profile | Offers coverage to individuals without significant health issues or hazardous occupations |
| Underwriting process or medical examination to assess risk | Medical examination to determine the health status |
| Expensive premium rates | Lower premium rates |
| Limited policy options | Variety of policy options |
Yes, you can still buy life insurance even if you are on a high-risk job or pursuing a hobby. The options will be limited, and the premiums can be more for high-risk individuals.
The limited policy options, providers, and higher premium rates are a major challenge for those classified as high-risk after the assessment.
Skydiving, scuba diving, bungee jumping, racing, parachuting, hang gliding.
The premium rates are certainly higher if you are classified as high-risk. The premium rates will, however, be based on the degree of risk, the coverage you require, and the type of policy you choose.
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