Great question! High risk life insurance is a type of policy that is generally issued to people who have health conditions ( like HIV) or occupations ( firefighter, oil rig wildcat, for example) that are above the normal risk tolerance for the normal insurer. They might also be issued to people that are incarcerated. These policies will generally be more expensive, and will often have a period of time included where the death benefit may only be the premiums paid in, plus a little interest. They are designed to help those that can't find it anywhere else. If you would like more information, please feel free to contact me, okay? Thanks for asking!
High risk life insurance is coverage issued to persons who have a risk of passing away at a younger age than the general population.
None of the policies I sell classify high risk based on occupation. A corrections officer can get the same rate as a business owner, as long as their health is the same.
Some high risk policies cater to those who are overweight. Some target certain health conditions. Some are more favorable than other companies for those who have gone through treatment for substance abuse, regularly travel to foreign countries, participate in dangerous hobbies, or have unstable finances.
To find the policy that best suits your particular kind of high risk, contact an impaired risk specialist such as myself. We have access to many different companies and can match you up with the one that is most lenient with your unique risk factors.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
People who participate in high risk activities or have impaired health conditions often are charged much higher premiums for life insurance, whether they are applying for term or permanent coverage. The price that you pay is determined by your age, the requested amount of coverage, and risk classification.
If the carrier offers a substandard/table-rating for the coverage, the premiums will usually be based off of the standard risk class with an extra 25% increase for each extra letter assigned (the 25% figure can vary by carrier - e.g. some may use 17%, etc.). For example, a Table B rating would cost the standard rate plus 50% (B = 2 tables), a Table D rating would cost double the standard rate (D = 4 tables), etc.
Insurance companies may also look at assigning a flat extra rating with a specified cost per thousand dollars of insurance (such as $5.00 per $1,000 of coverage). Flat extras may be applied for only a few years, or for the life of the policy and are more commonly assigned for high-risk activities. Table-ratings are more commonly given for high-risk health conditions.
I often also see many people just apply for a bunch of companies at the same time because they're a high-risk individual. DO NOT do this!. Applying for coverage with more than one company at the same time could hurt your chances of securing a policy. It is in your best interest to find out before applying what the most likely offer will be from 10-15 different companies so that you know what to expect and know that you are getting the best possible offer. I highly recommend working with an independent agent who can look at multiple companies for you - trying to get that information can be very difficult to do on your own. This is the exact field my group specializes in and would be happy to be of assistance with your program.
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None of the policies I sell classify high risk based on occupation. A corrections officer can get the same rate as a business owner, as long as their health is the same.
Some high risk policies cater to those who are overweight. Some target certain health conditions. Some are more favorable than other companies for those who have gone through treatment for substance abuse, regularly travel to foreign countries, participate in dangerous hobbies, or have unstable finances.
To find the policy that best suits your particular kind of high risk, contact an impaired risk specialist such as myself. We have access to many different companies and can match you up with the one that is most lenient with your unique risk factors.
If the carrier offers a substandard/table-rating for the coverage, the premiums will usually be based off of the standard risk class with an extra 25% increase for each extra letter assigned (the 25% figure can vary by carrier - e.g. some may use 17%, etc.). For example, a Table B rating would cost the standard rate plus 50% (B = 2 tables), a Table D rating would cost double the standard rate (D = 4 tables), etc.
Insurance companies may also look at assigning a flat extra rating with a specified cost per thousand dollars of insurance (such as $5.00 per $1,000 of coverage). Flat extras may be applied for only a few years, or for the life of the policy and are more commonly assigned for high-risk activities. Table-ratings are more commonly given for high-risk health conditions.
I often also see many people just apply for a bunch of companies at the same time because they're a high-risk individual. DO NOT do this!. Applying for coverage with more than one company at the same time could hurt your chances of securing a policy. It is in your best interest to find out before applying what the most likely offer will be from 10-15 different companies so that you know what to expect and know that you are getting the best possible offer. I highly recommend working with an independent agent who can look at multiple companies for you - trying to get that information can be very difficult to do on your own. This is the exact field my group specializes in and would be happy to be of assistance with your program.