There are primarily three reasons that individuals are placed into a high risk class: hazardous occupations, hazardous lifestyle activities, and existing medical conditions. Before describing some options for those that think they may need to buy a special type of life insurance policy because of a potential rating, let us look at certain things that do and do not give cause to that action.
• EXISTING MEDICAL CONDITIONS:
1. Smoking: Nicotine use alone (without other medical conditions) is not a factor that should cause someone to buy a high risk life insurance product. For smokers desiring more information link to Smokers Life Insurance.
2. Excessive weight (more than 250 lbs at 6.0’); significantly elevated blood pressure (above 150/90); cancer (other than certain skin cancers); diabetes not controlled by tablets and/or diet; heart disease; mental and certain psychiatric disorders; Parkinson’s; being treated for severe depression; and most diseases or disorders do give cause for the buyer to look at special types of high risk life insurance policies.
3. A combination of conditions, such as being slightly overweight, smoking, and having slightly high cholesterol levels or blood pressures readings, will lead to at least a class 2 sub-standard rating, and thus would justify looking at a high risk life insurance product.
4. For more information see the article: What is my health class or rating?
• HAZARDOUS OCCUPATIONS:
1. For most insurers, occupations such as municipal firefighters, coal miners, power line maintenance workers, policemen, or enlisted military, will not by itself cause a substandard rating. Many ‘hazardous’ jobs will only cause an ‘extra’ premium of a few dollars per $ 100,000 of coverage.
2. You should consider one of the Non-traditional Life Insurance Plans if you are in one of the following occupations: Boxing, Mixed Martial Arts fighter, active military aviation, drag racer, working at heights of more than 40’; and certain pilots. Certain other jobs coupled with medical conditions could also call for looking at non-traditional options.
• HAZARDOUS ACTIVITIES OR LIFESTYLES:
1. Most typically term life insurance or permanent life insurance applications will ask if the insured is involved in activities such as: SCUBA, racing, mountain climbing, flying, helicopter skiing, rodeo riding, hang-gliding, hot air ballooning, and even snowmobile or ATV riding.
2. Most hazardous lifestyle choices will not cause a policy to be highly rated; however, if the activity is coupled with being overweight or some medical condition, then it will likely cause a significant sub-standard rating and therefore justified looking at one of the Non-traditional Life Insurance Plans.
3. In most cases insureds who within the last 5 to 10 years had multiple DUIs, drug or alcohol treatment, or who were in prison, will be highly rated or uninsurable for traditional life insurance plans.
• OPTIONS FOR HIGH RISK INSUREDS:
1. There are numerous choices for those that are sub-standard or who think they are ‘uninsurable.’ For those insureds that might be slightly rated in one of the first few sub-standard classes, they should compare with traditional term life insurance or permanent (whole life or universal life) plans. These plans do not put limitations on ages, death benefit coverage amounts, and almost always produce better cash values and paid-up options than high risk plans.
2. Those in the class 4 or lower sub-standard risk classifications should consider examining one of the following non-traditional life insurance plans: Employer-Sponsored Group Insurance, No-Exam Life Insurance, Guaranteed Issue Life Insurance, or Graded Benefit Life Insurance.
3. For more information see: The Application Process, Health Questions & Medical Exams, and The Underwriting Process.
|Before buying a life insurance policy, the buyer should have an idea of the various types of life insurance plans that are designed to meet their desired goals. Additionally, the buyer should consider how their health condition and possible rating will affect their acceptance and premiums under those plans.|
Compare plans or call one of our advisors to find out which plan is best for you.