What is high risk life insurance? It's insurance which covers people who work in dangerous professions such as being a pilot, a motor car racer or a deep sea diver. As well it refers to people who have possibly fatal health conditions, such as people with heart disease, diabetes or cancer.
How hard is it to get?
It's not impossible to get a high risk life policy but insurers always take into account the level of risk involved. If a person has a serious health condition or is a sky diving instructor, then the type of policy issued is one called an 'impaired risk' policy as opposed to a 'standard risk' policy. Such policies normally carry higher premiums than other policies.
Companies which offer high risk life policies have become more sophisticated in their offerings in order to take into account the advances in treatment of various health conditions. The mortality tables used by some insurers are based on data collected in the 1970's. More up to date insurers use what is called 'clinical medical underwriting' to more accurately assess the nature of the risk they are insuring.
The concept of 'clinical medical underwriting' used by insurance companies that offer high risk life policies, is an attempt by them to more adequately reflect the current state of modern medical treatment. This doesn't just reflect the use of better technology or the development of improved operating procedure. It also takes into account the wide take up in the community of specific lifestyle regimes which help people to live a longer life.
What kind of benefits can you get?
While high risk life policies can be bought it is not available as readily as other types of insurance or with the expectation of as high a payout to beneficiaries. Often the payout will be limited to the amount of the premiums which have been paid, especially if the policy owner's death relates to the health condition which makes this policy owner a high risk in the first place. A policy may specify a period of up to 5 years during which premiums only will be paid as a death benefit.
If you already have a life policy and you then contract a disease which can shorten your life you may be in a better position in relation to high risk insurance than someone who carries no life policy at all. Check your life policy for a 'guaranteed insurability rider'. If this is part of your policy you have the right to increase the coverage of your policy at the current rate of your premiums.
If you are after a high risk life policy then make sure you get advice from an insurance company familiar with this type of insurance. This is a specialized form of insurance so do not assume every insurance company will be familiar with the ins and outs of what is on offer.
It's important to maximize the benefit to you when you buy a high risk life policy. It might be a good idea for you to consider getting quotes from more than one insurance company. It is unlikely both will offer exactly the same deal so you will be able to choose the policy that suits you best.
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