What are my options if I am “Hard to Insure?"

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For many people, securing life insurance is a matter of shopping around for the best quotes, applying, and enjoying the peace of mind of financial security for your loved ones. But for those deemed “hard to insure”, knowing where to look to secure reliable, affordable coverage can be considerably more challenging. It can seem like a catch-22; those living with a higher level of risk are likely more concerned about securing financial protection for their loved ones, but many insurance companies are hesitant to protect applicants if they deem them “too risky”! 

Thankfully, even if you’re hard to insure, you do have options when it comes to life insurance; you just  need to know where to look

First, let’s start with the basics. 

Who Is Considered Hard to Insure?

As part of an insurance company’s assessment process of each candidate, they take an in- depth look at lifestyle factors such as age, health, weight, and profession that will impact whether to grant you coverage, and at what cost. In doing so, they are assessing the risk of having to pay the death benefit from your policy. So, to put it simply, a hard-to-insure candidate is any individual with a high level of risk of passing away earlier. 

Typically, insurance companies will assign a higher level of risk to any applicant with a pre-existing health condition, a family history of health issues, those who have a profession that puts you in life threatening situations, or even those who engage in high-risk sports and hobbies such as skydiving, scuba diving, white water rafting, or mountain climbing. 

Some of the medical conditions that may impact your ability to secure traditional life insurance coverage include: 

  • Heart Attack or Heart Disease

  • Diabetes

  • Stroke

  • Mental Illness, including Depression, Schizophrenia, or Bipolar Disorder

  • Cancer

  • Rheumatoid Arthritis

  • Lupus

  • And more.

Whether it is your health, family history or lifestyle that classifies you as a hard-to-insure applicant, don’t be discouraged. Everyone deserves access to coverage for the ones they love. A life insurance policy can help ensure that their lives are not adversely impacted by the loss of your income or outstanding debts in the event of your passing.  

Traditional life insurance, which is underwritten, generally requires the applicant to complete a medical exam (including needles, fluid samples, and further tests as needed) as well as a questionnaire detailing your family health history, lifestyle habits, profession, and other factors which may impact your premium. Once accepted, these underwritten policies can take one to three months to be issued. Unfortunately, as a hard-to-insure candidate, it is common to be denied for traditional life insurance coverage or be left paying high premiums that just aren’t affordable in the long term. Thankfully, there are other options specifically designed for hard-to-insure candidates who are in need of reliable coverage. Let’s explore:

Life Insurance Options for Hard-to-Insure Applicants

Group Life Insurance Plans

Generally, employers group life insurance plans will offer you basic coverage at no extra cost. This is particularly the case within high-risk occupations since employers understand that it can be challenging to secure individual coverage. The downside to this basic coverage? It’s typically capped at a limit, often tied to the employee’s salary, and your coverage doesn’t come with you if you lose your job or change jobs. For this reason, its often advisable to explore a supplemental plan, to ensure that your family’s financial obligations are met. 

No Medical Life Insurance

No medical life insurance allows you to obtain coverage without the requirement of a medical exam, making them a great life insurance option for individuals with pre-existing health issues. No medical life insurance coverage is often available as a term or permanent life insurance plan, allowing you to select the option that works well for your stage of life and financial needs. 

Guaranteed Acceptance Life Insurance

These life insurance policies are ideal if you are deemed a hard-to-insure applicant, because as the name suggests, you are guaranteed acceptance. Furthermore, guaranteed issue, or guaranteed acceptance plans are typically permanent or whole life insurance policies, which means they offer lifetime coverage with a premium that stays the same from the day you obtain your coverage. Since these life insurance policies are not traditionally underwritten, they require no medial exams. Easy, streamlined coverage, for even the hard-to-insure. 

Hard to Insure? You Are Still Eligible for Coverage

When it comes down to it, as a hard-to-insure individual, securing life insurance is a critical component to protecting your family in the event that you’re no longer there to support them financially. Don’t risk leaving your loved ones in a financially precarious situation should you pass away. 

Be honest with your insurance company when applying for coverage, and rest assured that there are a number of reliable, and affordable life insurance options for hard-to-insure individuals. Take the time to explore your options to find a comprehensive coverage plan that fits your unique needs and lifestyle.