How To Find High Risk Life Insurance

See Top Companies, Compare Rates, Get Covered!

Do you suffer from a chronic medical condition that puts your life in jeopardy? Or, perhaps you work in a dangerous occupation or engage in certain types of activities that increase your chances of being involved in a fatal accident.

If yes, then finding affordable high-risk life insurance may be a great way to get extra protection for your loved ones.

Below you’re going to learn everything you need to know about high risk life insurance, including top companies, coverage options, and rates.

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What is High Risk Life Insurance?
Guaranteed Issue Life Insurance
Coverage Amounts for High Risk Individuals
High Risk Life Insurance Rates
Best High Risk Life Insurance Companies
Applying for High Risk Life Insurance

How To Find High Risk Life Insurance Guide

Regardless of the cause, if you are someone who is at a greater risk of passing away than the average person, you might want to look into obtaining guaranteed life insurance for high risk individuals.

What is High Risk Life Insurance?

For many people suffering from a chronic disease or who are involved in high risk activities, the thought of getting life insurance may seem impossible. You may worry that life insurance will be so costly that you simply can’t afford it.

However, there are certain life insurance policies specifically designed for high risk individuls. These are called, of course, high risk life insurance policies.

Guaranteed Issue Life Insurance for High Risk Individuals

Guaranteed life insurance is a type of policy that was created for people who are considered “high risk.”

In fact, with guaranteed life insurance, you are guaranteed to receive coverage regardless of your health and lifestyle. This type of insurance is issued without completing a medical exam or providing medical information.

There is no underwriting and a short application with only basic facts is required. You will need to include on your guaranteed life insurance application details such as age, gender, height, social security number, and tobacco usage.

Types of Guaranteed Life Insurance

guaranteed issue life insurance for high risk individuals

Guaranteed issue life insurance isn’t really any different than other life policies. It can be purchased as either a term or a permanent life plan. The main difference is that guaranteed issue life insurance does not involve customary underwriting practices and, as a result, the coverage amounts are usually lower than a standard life plan.

High Risk Term Life Insurance Policies

If you select a term plan, you can expect the coverage to last a specified amount of time. Term plans usually last 10, 15, 20, or 30 years but no more. Once a term life insurance policy expires, you’ll need to buy a new plan in order to remain insured.

To do so, you will need to work with your agent on re-applying for a new insurance plan at your then-current age. This means the premium on a new guaranteed issue term life policy will likely cost more than the original plan.

High Risk Permanent Life Insurance

If the guaranteed issue life insurance coverage you select is a permanent policy, you will be gaining additional financial protection in the form of cash value.

Over time this tax-deferred, cash value can then be accessed by withdrawing or borrowing funds. Some insureds borrow money from their whole life policy to pay medical bills or educational expenses. Any cash balances that you do not pay back into the policy will be deducted from the overall death benefit.

The Waiting Period in High Risk Insurance

A guaranteed issue life policy normally has a two year waiting period. This clause is common. It will provide a graded death benefit which means only a portion of the death benefit is paid during the first two years.

Or it will state the death benefit shall not be paid if you die prior to the policy being in force for two years. Instead, the insurance company will refund to your beneficiary the total amount of paid premium.

However, for most guaranteed issue life policies, deaths caused by an accident unrelated to your lifestyle will guarantee payment of the full death benefit.

If you are a high-risk individual then it’s most important to secure a policy as soon as possible. The two-year waiting period clause should not deter you from applying.

Coverage Amounts for Life Insurance for High Risk Individuals

The face amount of your guaranteed issue life insurance policy will most likely be lower than more traditional plans. Coverage amounts between $5,000 and $25,000 are what insurance companies typically offer.

It will be a challenge to find an affordable high-risk life insurance plan that provides a higher coverage amount. This is because the insurance company knows very little about your health or lifestyle. It leads them to believe they will probably pay out on your policy earlier than normal which increases their financial risk.

Life insurance with low face amounts are considered “burial” or “final expense” plans as they usually are just enough money to cover funeral costs.

High Risk Life Insurance Rates

Premiums for guaranteed issue life insurance policies are higher than more traditional life policies of equal coverage. This is because of the limited information the life insurer receives at the time of application. Therefore, the insurance carrier is taking on a higher risk by insuring individuals that may work or live in precarious situations.

Rather than simply denying you, the insurance company is willing to provide the coverage but at a higher cost. Your insurance agent knows this so they will certainly shop around to several carriers looking for the most competitive premium.

Your insurance agent will also know the steps you should take in order to increase your chances of finding affordable coverage. Keep in mind there are few factors that go into determining guaranteed issue insurance premiums.

So your agent will mainly focus on shopping around to different companies. Also, your insurance agent will probably tell you that being tobacco-free for one year will help lower your guaranteed life insurance premium by fifty percent.

Be sure to confirm with your insurance agent if the policy premium could increase at any time in the future. Each policy is unique and it’s best to review every aspect of the contract’s fine print. You want to be sure the high risk life insurance policy you have is the right fit.

Best High Risk Life Insurance Companies

There are over a dozen life insurance carriers that carry guaranteed issue policies. Here are our top choices for high risk life insurance.

AIG Life Insurance

AIG Life Insurance logo

AIG offers a number of options when it comes to life insurance. One of their best policies is their guaranteed issue whole life policy.

Available for people from ages 50-85, you can get coverage from $5,000 up to $25,000. It also comes with great rates and a few accelerated death benefits. However, this policy, like many guaranteed policies, does come with a 24 month waiting period (explained below).

Gerber Life Insurance

Another great choice for high risk individuals is Gerber Life Insurance.

Gerber’s guaranteed life plan is available for people age 50-80, and also has coverage up to $25,000. Gerber has a strong financial rating, good rates, and a very easy application process, making it one of our top rated high risk life insurance companies.

Great Western Life Insurance

Great Western offers a guaranteed life insurance plan available for people as young as 40. With coverage amounts from $1,000 to $40,000 it is a very flexible plan.

Rates can be higher than our other two picks, but it’s still a great option for those who are younger, or seeking more coverage.

Although those are generally our top 3 life insurance choices for high risk individuals, we do recommend you give us a call compare all your options. Every situation is unique and some other life insurance companies may be a better fit for you.

Applying for Affordable High Risk Life Insurance

The first step toward purchasing affordable high risk life insurance is to work with an experienced independent agent who will do their research into the best company for your personal situation.

There are over sixty different life insurers offering guaranteed issue life insurance for high-risk individuals. You should have no problem finding a suitable option.

Application Questions for High Risk Life Insurance

A few life insurers may include a short list of “knock-out” questions on the application. Depending on how you answer these “knock-out” questions, you may eliminate yourself from the application process immediately.

For example, some guaranteed issue life insurance companies include “knock-out” questions such as:

  • Do you currently reside in a hospital or long-term-care institution?
  • Have you been declared terminally ill?
  • Do you have AIDS or HIV?
Magic Johnson is a high risk life insurance candidate
Magic Johnson has HIV and would be considered a high risk candidate for life insurance.

Of course, your insurance agent will most likely know the companies that include these questions. If these are questions you wish to avoid, the insurance agent will know that too. He/she will then steer you towards a guaranteed life insurance policy for high-risk individuals that better suits your situation.

Since the standard underwriting process is eliminated, guaranteed issue life insurance for high-risk individuals can be issued very quickly. In fact, most insurance carriers issue policies within 48 hours but no later than 30 days from the time of submission. Typical life insurance takes six to eight weeks for approval.

A final note about all life insurance applications is to never include misleading or incorrect information. Many insureds find it tempting to deny being a smoker or down-playing their amount of tobacco usage.

This is a terrible idea!

Your high risk life insurance costs may be lower by saying you are a non-smoker but you are putting your policy at risk. It is best to be forthcoming with your insurance agent. Tell your agent whether you smoke cigarettes, cigars, pipes, e-cigs, or chew tobacco.

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