Why Purchase High-Risk Life Insurance?
There are some situations or conditions where it makes sense to protect the ones you care about, which we’ll explain below. The primary reason to buy high-risk insurance is if you have dependents who are relying on your income and need to be protected. In the event of your passing, you’ll still be able to take care of them.
Life Insurance for High-Risk Occupations
A dangerous profession can place you in the high-risk group. Here are some examples of high-risk occupations:
- Roofing specialists
- Underground miners
- Construction workers
- Ranchers and farmers
- Commercial fisherman
Different insurers have different interpretations of what a dangerous occupation is. The insurance company considers the daily activities you perform at your job and the working environment to evaluate the main risks of your profession. They will ask you questions about these things during the underwriting process.
In high-risk occupations, it’s common for employers to offer group life insurance plans to their employees. But basic group plans are often limited to $50,000 or the employee’s annual salary in their coverage. So, if a basic policy doesn’t meet your financial needs, consider acquiring supplemental life insurance coverage.
Life Insurance for High-Risk Diseases and Habits
If you have a pre-existing medical condition or other health issues, the severity will determine whether you are labeled as high-risk. Some diseases can reduce life expectancy, which increases the overall risk for insurers. You may also be considered a high risk if you have developed habits that reduce your life expectancy. Here are examples of high-risk diseases and habits:
- Heart disease
- Kidney disease
- Crohn’s disease
- High cholesterol
- Chewing tobacco
- History of cancer
- Organ transplants
- Smoking cigarettes or cigars
Each life insurance company has their own risk tolerance for patients with specific types of conditions or diseases. At Turning 65 Solutions, we have insight into what providers tend to accept and deny, so contact us if you have any questions.