High-risk life insurance

High-risk life insurance is somewhat of a niche market and depending on what it is that makes you a high-risk candidate, finding an insurance company who will give you cheap life insurance with full cover can be quite tricky.

Essentially, your premiums will be calculated according to how likely you are to die within the policy term. This calculation includes various factors about you and your life - from your age and health status to your occupation, hobbies and more.

What’s important to note is that the terms of who is considered “high-risk” can differ considerably between insurance companies. This means that when looking for life insurance that will accept your high-risk lifestyle, you should do a detailed life insurance comparison between your choice providers before settling on a policy.

In This Guide:

Are you a high-risk candidate?

When you apply for life insurance, then you will be requested to answer a variety of questions. These questions are raised so that insurance companies can determine whether you classify as high-risk, and if so, to what extremities. It’s important that you answer these questions honestly and in detail so that your claim is not rejected when misinformation is brought to light.

Essentially, any of the following factors could persuade life insurers to classify you as a high-risk candidate when applying for comprehensive life insurance:

  • Age. The older you are, the more susceptible you are to health conditions - you are also closer to death (grim, but true).
  • Pre-existing medical conditions. If you have been diagnosed with any life-threatening illnesses or disabilities, then you will automatically be considered more of a risk.
  • Habits. If you are prone to bad habits like smoking and drinking, then your health is threatened and your “risk” of death increases.
  • Address. Some insurance companies may go as far as investigating the area you live in to determine the health statistics for that particular region.
  • Occupation. If your occupation is hazardous to your health (both physical and mental health), then this can also be regarded as a risk factor. Examples of hazardous occupation titles can include (but are not limited to) firemen, policemen, soldiers, and miners.
  • Travel. If you often travel to destinations that have problems with infectious diseases or conflicting political situations, then this can also be considered as a risk factor.
  • Hobbies. If you partake in high-risk hobbies and sports (such as paragliding, motor car racing, and boxing), then your premium may be on the higher side. *Please see more information on hazardous pursuits such as these below.

What is a hazardous pursuit?

Comprehensive life insurance policies often refer to the phrase “hazardous pursuits”. Hazardous pursuits are regarded as physically dangerous and out-of-the-ordinary extreme sports and activities that can increase the risk of death or injury. Typically, the minute you require safety equipment, have to sign an indemnity form, or need special training for an extreme activity - then the “pursuit” may be deemed as “hazardous”.

Examples could include:

  • Skydiving
  • Cage diving
  • Speed contests
  • Scuba diving
  • Parasailing

It’s a no-brainer that extreme activities such as these usually put participants at greater risk of accidents and death. This, in turn, increases the risk of an early pay-out on an insurance policy. Insurance companies will assess the types of extreme activities you partake in and an appropriate amount of cover at the right premium will be agreed upon in conjunction with the hazardous pursuit in question.

What to do if you think you May be classified as high-risk

Before you attempt to shop around and make a life insurance comparison, you might want to look at ways you can cut your costs before you apply. If you can minimise the risks that you are affiliated with, then you can already start to reduce your potential monthly premiums. If you are obese, for example, you can make the change to live a healthier lifestyle by eating better and you can include regular exercise into your lifestyle too. Once you have reduced your risk factors as much as possible, then you can continue to compare prices to find the best policy for you.

Full disclosure

When you fill in a form for life insurance, remember that it is crucial that you are completely transparent about any aspects of your life that may class you as a high-risk customer.

If your provider discovers that you have withheld any important information from them, then according to their terms and conditions, you may find your policy invalid and your family will not receive a claim in the unfortunate event of your untimely death.

It is also very important to update your insurance policy if you take up any hazardous pursuits after your policy has already been put in place. This may affect your premium but it will also ensure that your claim is paid out timeously with no need for further investigations from your provider.

Shop for quotes and compare life insurance policies

Once you have tried to minimise your risk, you can now start to shop around for cheap life insurance quotes and compare the different plans on offer. We advise you to get as many quotes as you can from the insurance companies who do offer high-risk life insurance - this way, you can do a thorough life insurance comparison before selecting the plan that is both affordable and suitable to your personal needs.

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