
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated
Insurers consider many different factors when determining how much you should be paying in premiums. High-risk applicants are people who have an increased probability of death or disability due to aspects of their lifestyle or health. Factors that could make you considered “high-risk” include:
During the life insurance application process, the provider will collect as much information about you as possible in order to set your premiums accordingly. Here a few of the main details regarding your health that they’ll shine a light on:
Your health and lifestyle are the main factors that insurers will evaluate. When you apply for life insurance, the insurer will provide a medical questionnaire for you to disclose any existing or past conditions that you may have suffered from, plus, any treatment you’re undergoing or have had. Failing to disclose any relevant information can let the insurer cancel your policy without refund or deny a future claim.
Pre-existing medical conditions will be addressed in one of three ways:
Some policies may require you to have a complete medical or physical check-up to be eligible — especially if you have pre-existing conditions. The purpose of this exam is to make sure that no condition is overlooked and to verify the status of your health and wellbeing.
Are you into skydiving, bungee jumping, motorcycles, extreme sports or any other dangerous hobby? Your life insurance company might see your pastime as an expensive accident waiting to happen. High risk hobbies are a distinct risk factor and many policies will flat-out exclude specific pastimes. You might find a provider to insure you, but at an extra cost that could be expensive.
It should be noted that there are niche companies that specialize in providing coverage for thrill-seekers.
Occupations are assessed based on the nature of the work and perceived level of risk. Jobs including agriculture, fishing, mining and construction are seen by insurers as having an increased risk of death or injury and result in higher premiums.
However, the insurance company will consider the work relating to your specific role. For example, if you work in the mining industry, but work in administration, you can ask your provider to review your premiums based on the reduced level of risk.
Smoking, heavy drinking or recreational drug use can all be considered high to insurance companies. Higher premiums are directly related to any lifestyle factors that come with increased medical costs, or a raised chance of disability or death. To get a detailed view of your health, the insurer will ask about:
On the other hand, someone in great shape with a healthy lifestyle may be eligible for discounts, reduced premiums and other bonuses from insurers. Some lifestyle factors can be determined through medical testing, blood tests, BMI calculators and other methods. It’s important to keep in mind that a non-smoker is someone who hasn’t smoked for more than 12 months.
How are life insurance premiums impacted by smoking?
Yes. Not every life insurance company assesses applicants the same way. Some companies may refuse to provide coverage to high-risk individuals, while others are willing to insure risky applicants despite hazardous occupations, hobbies, medical conditions or lifestyles. Be aware that you may have costly premiums or certain exclusions in your policy if you’re assessed as high risk.
Life insurance advisers can use their knowledge of the industry to help potentially risky applicants find providers that are willing to cover them at a reasonable rate. Based on the risk that the applicant carries, the adviser can find insurers willing to provide coverage or tailor the policy around the risk.
Even risky candidates can get insured, it just takes a little know-how when it comes to finding a policy that’s flexible and can meet their needs. By following these few tips on how to balance costs and benefits, you should be able to find a policy that works for you:
Your risk profile revolves around on how likely you are to make a life insurance claim before the policy expires. Dangerous occupations and hobbies naturally raise the chances of something unfortunate happening. To find a policy that fits your needs, list all your lifestyle factors, occupational hazards and dangerous pastimes, and then consider how these are handled by different providers.
These factors have a big impact on your premiums and being aware of them can help you find ways to reduce costs.
Once you know what kind of terms you want, you can start comparing insurers and different policies. You could also explain your requirements to an insurance broker and have them do the legwork. Compare as many policies possible in order to find the most fitting among them.
Before settling on a life insurance policy, make sure you fully understand all the terms and conditions. You should not sign up without knowing about:
If you’ve found a policy that covers you for high risk activities or lifestyle factors, then it’ll typically come at a higher price than other life insurance policies. This means you should try to save some cash by looking for discounts or taking advantage of other strategies that could bump down your insurance premiums.
If you lie, mislead or fail to be entirely honest, your insurer can cancel your policy without a refund. Even worse, they might use this as grounds to reject a claim even though you’ve paid premiums the entire time. You might be able to lower your premiums by fudging the truth, but it puts your entire policy at risk which defeats the purpose of even having insurance.
When it comes to getting high risk life insurance, honesty is the other best policy. Research and comparing quotes will help you find a life insurance policy that’s right for you.
Reduce your debt by around 30% after fees — but only if you can stick with the program. Here’s how.
Don’t be fooled by false promises — here are red flags to watch out for and tips to find a legit company.
This insurer has four dental plans to choose from — compare costs and features now.
Learn cost-sharing terms to find out how much you’ll really pay for healthcare.
This fintech just branched out into low-cost life insurance — but its lineup is limited.
Get the skincare you need without taking a trip into your doctor’s office.
Get an incentive to meet your existing health and fitness goals with a discounted premium.
Find unusually low face values for a whole life policy, ideal for supplemental insurance.
Learn your policy options based on the type of transplant and your health status now.
Get pet insurance that reimburses 100% of your vet bills or a separate wellness plan.