There are a number of factors that go into creating an individualized life insurance policy, including the policyholder’s age, social habits, past medical history, and health risks. An insurance company will weigh all of these aspects to determine if it wants to insure the individual and, if so, at which rate. Most people have no problem being accepted into a plan but others may face challenges because of their histories or lifestyles that means they have to consider high-risk life insurance. So, just what is high-risk life insurance?
What is High-Risk Life Insurance?
This term refers to a policy assigned to someone deemed a high risk. Several factors can influence this determination, such as whether the person has a dangerous job or hobby, has a history of risky habits or has been diagnosed with a serious illness.
For instance, an occupation such as a firefighter may put someone into the high-risk category, as insurance companies evaluate both the rates of death and injury for such an occupation as well as the company’s own history of insuring people who work in this field. A hobby such as skydiving is another activity that could mean the person has to invest in high-risk insurance. Smoking is one of the most common high-risk habits and one that many people attempt to kick before applying for insurance; typically, most insurance companies will offer a lower rate to applicants once they’ve been smoke-free for at least a year. High-risk diseases are those considered the most serious and life-threatening. For instance, asthma or controlled anxiety or depression shouldn’t affect a person’s ability to get insurance, but more severe diagnoses like cancer and diabetes may put that person in the high-risk category.
Are Other Insurance Options Available?
Now that you’ve answered, what is high-risk life insurance?, it’s time to consider the options. It’s important to gather as many quotes as possible, as the more options that are available, the better the chance that a high-risk person can enroll in a quality plan at an affordable rate. Working with an independent agent with access to a broad range of insurance companies is one way to navigate the process. Also, consider the different types of policies, as whole life may be a bit more accessible to high-risk applicants than term.
Can I Get a Life Insurance Loan?
Life Credit’s Living Benefit Loan allows those with a serious medical condition or cancer to access their life insurance death benefit and take out a life insurance loan. The Life Benefit Loan Program allows you to borrow up to 50 percent of your death benefit if you have at least $75,000 of life insurance coverage. Call Life Credit at 888-274-1777 to learn more or contact us online today.