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 a 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.
It is common for employers in high-risk occupations to offer group life insurance plans to their employees as a benefit. However, basic group life insurance plans often have coverage limits of $50,000 or the employee’s annual salary.
If a basic life insurance policy does not adequately cover your financial needs, you may want to consider purchasing supplementary life insurance coverage.
Life Insurance for High-Risk Diseases
Your risk classification for life insurance purposes will depend on the severity of any pre-existing medical conditions or other health issues that you may have. Those with more severe health issues may be considered high-risk. Some diseases can reduce life expectancy, which increases the overall risk for insurers. Developing habits that have the potential to shorten your lifespan, such as smoking or engaging in dangerous activities, may also lead to a high-risk classification for life insurance purposes.
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
The willingness of life insurance companies to insure individuals with specific types of conditions or diseases may vary from company to company. At Turning 65 Solutions, we have insight into what providers tend to accept and deny, so contact us if you have any questions.