“High Risk” Life Insurance

High Risk Life Insurance Cases

So what is it and why is it important?  Many Americans who apply for some sort of insurance whether it be life, health or disability may find themselves being underwritten. An underwriter is in general someone who calculates the risk of an individual based on their age, occupation, health status & lifestyle along with the prescription drugs taken.  Why is this such a big thing in the insurance world? Well again the purpose of insurance mainly is to transfer the risk onto someone else in the event that the proposed insured dies.

Who & What are considered to be high-risk

High risk life insurance is not the end of the world for those wanting to protect themselves. There are High-risk occupations such as police officers, fire fighters, Scuba divers and military personnel to name a few. Then there are those with High-risk health impairments such as Smokers, Hypertension, HIV, COPD and any type of debilitating or chronic health impairment and the list could go on. Well there was a time when insurance carriers didn’t want anything to do with you if you had health issues that could potentially pose a concern down the road.(Pre-existing conditions).

Carriers of Health or Life Insurance companies could charge a premium much higher than say an individual who didn’t have any health issues.  On some life insurance applications these would be called knock out questions and if there were certain medications taken those also could be the cause for a decline.  

You see most people are looking for life insurance coverage that would be forgiving to those who are just simply living their lives.  Let’s be honest, not every one who applies will be squeaky clean or have the immortal lives of superheroes. Life does happen and Americans still want to feel like they’ve set the foundation and just in case something does happen the family doesn’t suffer.  Could a life insurance carrier blame someone who was diagnosed with gestational diabetes? Of course not but they use data to determine the likelihood of someone’s longevity.

Believe it or not, It has long been argued: who are we to determine someone’s time on this earth?  However Insurance actuaries are able to somewhat predict what could happen. The questions that come up are the Probability or the Possibility. These underwriters can tell a lot by a person’s genetic makeup based on region, demographics, geography and perhaps history of their parents and siblings who have since passed.

Those who take certain prescription medications that are known to have an adverse affect not only on the body but the mental state of an individual are considered high risk.  Those individuals who have had traumatic life issues which resulted in them needing therapy and perhaps some form of medication to cope. These Rx’s or prescriptions tell an underwriter everything they need to know about any risk that is associated with the proposed insured.

First responders aka policemen, firefighters, Lifeguards, Rescuers etc… are considered to be high-risk careers for obvious reasons.  So life insurance companies have to take that into consideration as to what can happen while they are on the clock so to speak. Rates may be adjusted, terms may be different however this doesn’t mean that they will be denied life insurance coverage.  Often-time they can still get Super-Preferred and Preferred rates.  

Some proposed insureds could be considered a risk maybe not HIGH-RISK but a risk nevertheless based on genetics.  I’ll give you an example. Years ago I applied for life insurance on myself and after going through underwriting the carrier came back with something known as AOTA (Approved other than applied for) or a Modified offer. You can learn more about this topic here. This stemmed from the death of my father and the condition that he died from.  I was a bit puzzled at the cause for concern but I asked what did this have to do with me and the underwriter from the insurance carrier basically told me that because your father died from a brain stroke we now therefore have to take that risk into consideration due to your age and probability regarding your application for life insurance.  Your rates have been adjusted to reflect that. It was a take it or leave it situation.

If you’ve been turned down recently because you didn’t quite fit into the paremeters of the life insurance company and was considered possibly High-Risk then give us a call so we can discuss your options. We specialize in High-Risk life insurance cases.