Finding Affordable Life Insurance for High-Risk Conditions

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You may have heard how difficult it can be to secure life insurance the older you are and the more severe your medical condition may be.

It can be a confusing and complicated process, given the number of insurance agencies and companies out there claiming to have the best prices and coverage.

There are also companies that market themselves as ‘price friendly’ to those with higher risk conditions but with hidden costs and specifics regarding a certain illness.

But how do you know what constitutes high-risk insurance? How can you find lower rates that work with your income?

In this article, we’ll cover what constitutes high-risk life insurance as well as high-risk occupations, habits, or hobbies, and how you can find lower rates or plans that work for you no matter your health condition.

What does ‘High-Risk’ Life Insurance mean?

Essentially, high-risk insurance is when the insured person is considered to be a risk to insure. The higher of a risk someone is considered, the higher the premiums for the plans – and it can even affect your level of coverage.

Diseases & Conditions That Are High-Risk for Insurers

Risks are generally defined as medical conditions, habits, and family history. Examples of high-risk medical conditions are:

High-risk lifestyle habits can also impact your level of risk to an insurance carrier, such as:

  • Smoking or vaping
  • Tobacco use
  • Level of alcohol consumption

No matter your situation, whether it is a medical condition, lifestyle habit, or family history acquiring lower-rates for life insurance is still possible, depending on the agency you work with and the company you choose.

Let’s go over a few tips for securing lower-rates for your life insurance plan.

Firstly, it is crucial to compare rates with multiple companies – do not immediately pick one because you don’t think you can find a better deal or that it is not possible.

Every company has its own policy, underwriting process, and guidelines regarding occupations, habits, and medical illnesses.

The best you can do is assess if you have anything considered high-risk, and start searching for companies based on those conditions so you can find the one that will look at you through the best lens.

Now, it is important to understand there are different types of high-risk policies you can choose, which affect the price of premiums. Usually, term life insurance is cheaper than long-term or permanent benefits, but this is not always the case with high-risk applicants.

It can be easier to qualify for a permanent plan with a whole life insurance policy if you are considered high-risk. You may be able to secure standard rates based on the program for that particular company.

Perhaps one of the most obvious ways to help you secure low rates is to improve your health class. For instance, if you are a smoker or high-level drinker, decreasing the habit can profoundly affect what level of coverage you apply for.

You may no longer be considered a high-risk applicant. This, of course, is easier said than done, but there are programs available to help someone decrease these habits, also increasing their health.

Furthermore, a good agent can negotiate with the underwriterif the applicant is close to a better health classification.

Moving on to the most important tip to securing a good policy – finding an experienced life insurance agent. It cannot be stressed enough the importance of working with an experienced agent in the field you are looking into.

They will be able to help you figure out if a term-life plan or permanent plan is the better deal for you, which can be really helpful in narrowing down options and companies to work with.

Experienced agents will have worked with multiple conditions, habits, or occupations considered to be high risk, and therefore, know which companies and policies will give you the best deal.

To find one of these agents, ensure they are not working as a representative for one, singular company. They will try to push that company and their policies onto you, whether it is the best deal for you or not.

The agent you choose should be independent so they can look at various companies, comparing their rates and underwriting processes so they can truly find the best fit for you.

What to Expect from Insurance Company Underwriters

Underwriting processes can make or break what your insurance premiums are and what policies you are applying for. Underwriting processes are how companies evaluate life insurance applications.

Many carriers have their life insurance underwriting processes and guidelines on their websites you can evaluate if they would be a good fit for you.

Some look at your family history, weight, height, and blood pressure to rate what class you would fit into, others will want to know immediately if you have a high-risk condition.

Though we have discussed tips to securing low-rates and how companies may consider high-risk conditions, let’s talk about if someone has a serious or terminal medical condition. These are considered very, very high risk and can therefore be difficult to find good coverage with affordable rates.

For Serious Medical Conditions Consider Guaranteed Acceptance Life Insurance

This is why guaranteed acceptance policies exist. Guaranteed acceptance policies are more expensive because unlike any other plan, they do not have an underwriting process.

These plans are for anyone and everyone.Because of this, the company is unsure of the risk they are taking on and subsequently charge higher premiums. There is also generally a 2-3 year waiting period before full coverage, but some coverage is always better than none at all. That is important to remember, especially if you are considered to be seriously high-risk.

Here is an example of how the insurance agency Superior Mutual processes applications for life insurance.

First, there is a pre-qualification letter with information for you to fill out that they can then send over to all the insurance companies they work with. The companies will either then make tentative offers or decline.

It is then the agency’s job to sort through the offers, should they receive any, and present you with the best ones to suit your needs and financial situation.

Should you then decide to apply, they will take that pre-qualification offer in writing, and then everything you are required to fill out will be sent back to the company, which will ultimately decide the rate you will get for your premiums.

No matter what, always be completely honest with your agency, even if you are afraid you may have a condition that will affect the price of your premiums. You do not want to be caught later on and risk having your policy revoked altogether.

Any premiums you have paid will not be returned, and no other company will be willing to work with you. If you have an agent truly experienced in the field, you can find a policy that works for you within affordability.

One last tip – never give money to your agent. Agents are paid once policies are secured through the carrier. You should never be giving your agent the payment for your policy or paying them upfront for their help.

Let Our Experts Find You a High-Risk Life Insurance Policy

Life insurance can seem like a complicated and sometimes daunting process, but if you know what your conditions are, where you might stand on securing benefits, and what to look for to find the best agent to help you, it should be a smooth process with little stress involved.

Now that you know the best tips to secure low rates and what being high-risk means and entails, this process should be fairly straightforward!

The agency should be handling pretty much everything, but you also need to push back if something does not feel right or you feel not all options have been explored.

No matter the possible severity of your health condition or situation, there are policies available to you and carriers should work with you on affordability.

Just give us a call at (888) 810-9725 and request a Superior quote for high-risk life insurance.

Never let someone tell you differently, and remember, some coverage is better than none at all. At the very least, it eases stress off of you and your loved ones and gives you some support.

About Al Kushner
Al Kushner
He is a recognized financial educator, best-selling author, speaker, underwriting specialist and the founder & CEO of Superior Mutual, an independent insurance agency. He has helped families and individuals preserve, protect, and pass on a legacy since 1986. His mission is helping hard working seniors keep more of what they have worked a lifetime to save.
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