If you ever went to an Insurance company to buy your insurance, then you might know about the numerous questions they ask related to the age, health, occupation, and hobby of the applicant. The purpose behind those questions is to find out the best insurance policy suited for you. If you notice that your insurance charges are higher than normal, then your insurance provider has qualified you as a high-risk individual.
We interviewed Laura Adams, Insurance & Finance Analyst at Clearsurance, to get to know more about higher risk life insurance policies and what makes you qualify for them. Laura Adams is one of the nation’s leading finance, insurance, and small business authorities, and here is some of her insight about High-risk life insurance policies.
What is High-Risk Life Insurance?
Any life insurance plan that is rated lower than the “normal” health classification qualifies as a “high-risk” policy. Insurers use the high-risk label for a variety of reasons, including the applicant’s health history, such as poor health or any underlying medical condition, lifestyle, occupation, such as fishermen or construction workers, high-risk hobbies like skydiving, hunting, etc., or even travel to certain foreign countries.
What Makes You Qualified for High-Risk Life Insurance?
To determine who qualifies for high-risk life insurance, insurance providers ask a series of questions related to the following categories:
1: Occupations
Your occupation is taken into account by life insurance companies when determining the level of risk you experience daily. Underground miners, steelworkers, construction workers, and commercial fishermen are examples of high-risk occupations.
The risk and death rates of high-risk occupations are calculated by life insurance providers.
2: Health Risks
Life insurance companies determine whether you are a high-risk individual or not by checking your medical history as well as your family’s.
The following are the health conditions that are considered high-risk
- Cancer
- Heart Diseases
- Stroke
- Dementia
- HIV/AIDS
- Crohn’s Disease
- Organ Transplant
- Kidney Disease
- High Cholesterol
- Smoking Cigarette
- Chewing Tobacco
3: Hobbies
You are most likely in the high-risk category if you consider yourself a thrill-seeker. Scuba diving, mountaineering, skydiving, and motorcycle racing are among potentially risky hobbies that insurance companies want to know about.
Furthermore, a large number of people go to different countries to pursue their high-risk activities, which are frowned upon by many insurance providers.
Unless the applicant chooses an insurance company that specializes in life insurance for those with high-risk hobbies, any of these high-risk activities can result in a rated coverage.
4: Lifestyle
Insurance providers also analyze your lifestyle before determining your insurance policy. Even if you have no medical problems or a family history of sickness, your habits could put you at high risk.
If your lifestyle includes high consumption of alcohol, smoking tobacco and cigars, and use of other drugs, then you are qualified for a high-risk insurance policy.
Takeaway:
High-risk life insurance rates are generally higher, but if you want to get affordable insurance, you might need to reduce the risk associated with your insurance. For starters, you can try to improve your health by taking your medications regularly or by quitting bad habits such as smoking, drinking, etc.
For more information and to get the insurance quotes you can dial 1-888-635-0013 right away!