- Life insurance types
- Accidental life insurance
- Child life insurance
- Critical illness cover
- Death in service
- Decreasing term life insurance
- Endowment life insurance
- Guaranteed life insurance
- High risk life insurance
- Increasing-term life insurance
- Insurance bond
- Joint life insurance
- Level life insurance
- Life insurance for alcoholics
- Life Insurance for cancer patients
- Life insurance for dangerous sports
- Life insurance for diabetics
- Life insurance for disabled people
- Life insurance for epileptics
- Life insurance for men
- Life insurance for over 50s
- Life insurance for over 60s
- Life insurance for over 70s
- Life insurance for overweight people
- Life Insurance for smokers
- Life insurance for women
- Mortgage life insurance
- Renewable-term life insurance
- Service life insurance
- Single life insurance
- Single premium life insurance
- Term life insurance
- Unit linked life insurance
- Whole life insurance
High risk life insurance
High-risk life insurance is designed for people that fall into high-risk group. To put it simple, there is a high possibility that the insurance company will have to pay the money for a successful claim. From the insured person’s point of view, he has a higher risk of dying at an early age than an average person. Different insurance types determine the riskiness of a person taking into consideration different factors. For instance, a car insurer will consider a person having high-risk if he made a lot of car accidents in the past, uses alcohol frequently or just got his driving license. In contract, a home insurer will attribute the person to high-risk group if his house stands in the region where natural disasters occur frequently or the house has poor protection from fire or thieves.
Who is likely to belong to high-risk group
In the case of life insurances, a person can be attributed to high-risk group for two major reasons. The first one is a hazardous job or hobby. People having most dangerous occupations are miners, oil and gas workers, deep-sea divers, armed forces workers, fishermen and firemen. Motor racing, diving, skiing, parachuting, pot holing, rock climbing, paragliding enthusiasts also should expect to pay higher premiums.
The second reason is medical condition that is dangerous and is considered a threat to the life of the person. Most often conditions are diabetes, heart, attack, cancer, cardiovascular disease, cerebrovascular disease, epilepsy, hepatitis, high cholesterol, hypertension and neurological diseases. It is important to note that these two reasons create high-risk for the insurance carrier. Once the person gets the insurance cover and provides the insurance company with truthful information he can live hassle-free because in case of his death the benefit will be given to the dependents.
Besides two reasons mentioned above an individual can also be considered having high-risk if he has a mental illness, is overweight or uses certain types of medication. An individual also can be considered presenting high-risk to the insurance company if he is a heavy smoker, uses alcohol or drugs often, is an elderly or has a bad heath history of his family. What is more, if a person is an active traveller to dangerous countries or does not have the citizenship of that country where he wants to get a life insurance, this can also create a challenge.
Premiums for high risk life insurance
If an individual belongs to high-risk group he will have to pay higher premiums for his life insurance contract. The insurance carrier will require these people to pay higher premiums while giving the same insurance cover conditions and benefits like for people that are not considered having high-risk. Higher premiums are required to compensate the insurance carriers for the higher possibility of losses. However, some people that have serious health issues, work dangerous jobs or engage in hazardous hobbies sometimes think that it is not possible for them to get a life insurance cover. This is not true since there are high-risk life insurance companies that offer life insurance covers for people that have high-risk for affordable premiums.
Most life insurance providers use tables that contain mortality data from previous 30 years. According to these rates the loaded premium is determined. However, medicine, work and sport safety standards change every day and a result these tables are not always accurate due to long time period they cover. Luckily, more and more insurance providers now switch to different technique when calculating loaded premiums. The process is called clinical medical underwriting. This method allows insurance carriers to take into consideration all the newest medical achievements and changes in lifestyle. It is extremely useful for people that have health issues. For instance, a person with diabetes today is most likely to get a significantly lower premium than he would have gotten 30 years ago.
However, it does not mean that all individuals falling into one of the above mentioned groups will have to pay equal premiums. The price of the premiums will depend from the individual characteristics of the applicant. Indeed, the application is the first step that will help to determine how much the insurance premium will cost. It is important to provide insurance company with all information about ones health condition and lifestyle.
How to apply for the best available high risk life insurance
The first step a person has to take if he wants to buy an insurance cover is to contact an insurance broker that specializes in life insurance for high-risk individuals. These brokers know where to find best life insurance offers for high-risk individuals and also can advice what a person should do in order to lower the premiums. There are two types of high-risk life insurance brokers: those that specialize only in specific risks and those that provide services to all high-risk individuals. Consulting a life insurance broker is useful because there is a high possibility that they have already found a life insurance carrier for their previous clients that had similar conditions. As a result, it is possible to save a lot of time that otherwise would be wasted for searching high-risk life insurance covers and comparing them.