High Risk Insurance Basics
That being said, there are some instances where a high risk life insurance policy is definitely worth considering. It's important to understand how these policies work and what makes them high risk before making a determination on whether you qualify or not.
Generally, the first thing an insurance company will do to assess whether you qualify for high risk life insurance is a complete underwriting of your application. Basically, they thoroughly examine your medical and vital statistics and make decisions on whether your policy will be issued or whether some sort of medical intervention is necessary (like a physical exam). Sometimes this can turn out to be a negotiation, but generally speaking, the insurance company sets the guidelines, and you must meet or exceed them.
Because policies are individualized and vary greatly depending on the insurance company, you should check with your insurer regarding what actually constitutes high risk and what you can expect to pay. Also ask if there are any preexisting conditions you should mention or places that they recommend you avoid living or traveling to. Some areas of the world and some countries have a high prevalence of parasites or Tropical disease that could cause severe medical problems or even death.
The last thing you want when you’re shopping for a term life insurance policy, is to find something overpriced on the first go. This is why you should take as much time as you need before you start comparing policies and before you start talking to agents. Finding out how much coverage you should have and what happens after death should be the first steps in your research.
Try going to a couple of different websites, and once you’re confident that you know enough about the quotes and coverage, start talking to agents and advisors. Pay close attention to what they’re saying and be sure to double check all the numbers you’re given or offered.
The price of life insurance policies can vary dramatically depending on the type of coverage you’re looking for. If you’re trying to figure out the amount of coverage you need, here are a few things to look out for:
- How much debt do you have?
- What is your family’s monthly income?
- Are you planning to help your children with educational expenses or give them money for a down payment and move out of their parent’s place when they get married?
Show That You Can Control It
One of the most common reasons people settle for a subpar term life policy is because they don’t want to wait two or three months for coverage. This is understandable. But if you act like you’re in good health with a good medical history, you will be able to enjoy the same policy term as the rest of the population. You just might have to pay for it.
The same goes for the quote. People often assume that if they have high risk medical conditions, then they can get high risk life insurance as well. The truth is that it’s very hard to qualify for the best rates with bad health, and if you want the best rates available, you will need to prove that you can control that condition. You might still be able to get a good-enough policy, but you’ll almost certainly have to pay for it.
The most important thing, when you’re applying for a high risk life insurance policy, is to avoid hiding something. Life insurers know a lot about their applicants, and they know very quickly when they skip over something. If you get caught lying or hiding things on your application, then you’re going to get declined automatically.
Utilize a Trial Offer
The first step in shopping for high risk life insurance is to get a free quote from a reputable company. You can get that quote in just a few minutes by going to Free High Risk Quote (see the link in the Resource Center) or by filling out the short form on the next page.
When you get your quote, the agent will review your health information, circumstances, and lifestyle, and then decide how much you could get for your high risk life insurance needs. If you have any questions, ask the agent. He or she will answer them on the spot or refer you to a colleague who can.
Once your questions are answered (and any concerns allayed), you’ll either move on to the purchasing stage or you may need to purchase a trail period to protect yourself from a pre-existing condition that cannot be removed from your health record.
If you have a pre-existing condition that can’t be removed from your record, that condition will be covered for a period of time by a trial period. This way, if the condition flares up (or something unrelated happens) during the trial period, you’ll still be eligible for a policy. But, if you can live without that protective period, or you’d rather save money and start with a regular policy right away, then you should consider skipping the trial period and proceed with a regular policy.
How Much Do You Really Need?
When it comes to life insurance, a lot of people are under the mistaken assumption that you only need enough coverage to pay off your debts and leave something behind for your family. Yet, if you divide the amount needed to cover those two things by the monthly premium, you may find out that it’s not a lot like you thought. This is when high-risk life insurance can become more appealing.
High-risk life insurance is designed for people who are considered at higher risk of dying or becoming disabled, such as:
- — People who engage in risky behaviors, such as smoking or abusing alcohol;
- — People with a medical history of a particular high-risk condition;
— People who have certain vices or occupations, such as truck drivers, construction workers, police officers, etc.;
— People Who Live by Themselves without Any Support System or Backup Care Providers; And
Getting High Risk Life Insurance
Is a Bad Idea!
Have you ever thought about getting a high risk life insurance? Have you been called by a sales agent on your cellphone about it? Are you the victim of an accident or disease that limits your capabilities? You may think it is the best thing in the world around, but high risk life insurance is a really bad idea.
The people who are in the industry surely love high risk life insurance. It keeps them employed and gives them a reason to live! But do they really sell insurance or do they help the high risk people in society? Maybe both! The truth is that they just want to sell insurance, and once they have convinced you that high risk life insurance is for you, they would not care about you at all.
The first step into this trap is to get your first life insurance. You may get turned down, but if you manage to get it, it will be the day that you signed your death certificate! You may not die then, but if you stay insured with a high risk life insurance, you would be doomed for certain. Why?
Other High-Risk Health Issues
- “High blood pressure” adds about 1.0, 1.5 or 2.0 increases in rates
- “Diabetes/sugar” adds about 1.0, 1.5 or 2.0 increases in rates
- “Heart attack” adds about 1.0, 1.5 or 2.0 increases in rates
- “Stroke” adds about 1.0, 1.5 or 2.0 increases in rates
- “Asthma” adds about 1.0 increase in rates
- “AIDS” adds about 3.0 increases in rates