High Risk Life Insurance - Life Insurance with Pre-Existing Medical Conditions
High Risk Life Insurance and Life Insurance With Pre-Existing Medical Conditions can be tricky. Our Job Today and in this article is to provide you a clear path toward obtaining the best life insurance rates possible. Proceed with an open mind and ready to put the task of life insurance behind you for good.
Prepare for the most comprehensive guide and insider tips from real life insurance agents who handle these situations on a daily basis.
Thanks for stopping by. Good Life Protection
What is high risk life insurance? What can I do if I am deemed to be high risk? What’s high risk life insurance rates look like?
These are questions we are here to answer. High-risk life insurance can be intimidating. Either you do not want to pay the higher premiums or you are scared you will be denied for the life insurance. It’s tough to know where to even look with the thousands of life insurance companies in the market today. Who’s the best company for you and who can provide the best rates are both questions you need to be asking yourself to determine which way to go.
It’s also important to know what rates you may be looking and to have a full understanding of life insurance in general.
High-risk life insurance does not have to be so scary. Plenty of options are available. In fact, in my industry experience, high-risk life insurance companies exist in fairly large quantities. Sure, they do not advertise as such but they provide coverage for many different variations of medical conditions and offer plenty of different options and life insurance policies for individuals that are deemed high risk. Life insurance for high risk individuals can present more work for the agent, but nothing to fret over.
High risk life insurance companies are always willing to look at your case.
The most important part of the process is gaining an understanding of how high-risk life insurance works. What is your condition? How do life insurance carriers view you in terms of underwriting and risk? In my experience, insuring high risk individuals rarely revolves around cost.
A crazy phenomenon known as, “adverse selection” tends to take place in these situations. Once you know you need the life insurance, you go out and attempt to get it. While nothing is wrong with this approach, it does go to show the importance of purchasing life insurance before you run into problems. We will discuss the potential problems in this guide to obtaining high risk life insurance.
Let’s first begin by explaining what exactly Good Life Protection handles and categorize all the health conditions, habits or occupations that could make your case just a little trickier than a typical life insurance case. As always, we always recommend considering many life insurance companies to determine who the best option may be for you.
Don’t worry we will cover that for you a little later.
We are first going to start by categorizing the potential pre-existing medical conditions you have into its respected area and giving a break down of the health condition. We will then give a brief overview of the high risk pre-existing medical condition, and then discuss other areas of high-risk life insurance.
If you don’t happen to see your condition, you currently have, please be sure to comment below.
It’s very possible we forgot to add it because we can nearly guarantee that we have worked with individuals with the same pre-existing medical condition that you are currently dealing with and we want to help you as well.
Let’s Get Started
High Risk Life Insurance
Broken Down By Categories
Blood Disease and Blood Disorders
A Full Breakdown
Blood Cell Disorders is when a problem exists with your red blood cells, white blood or small circulating cells. These are critical for clot formation. All your blood cells form in your bone marrow. They help transport oxygen to other body’s parts, organ and tissues.
They also help fight against infections. Other issues you may experience with blood disorders could be frequent blood clots.Best Life Insurance Companies 2019
Some common symptoms include
Here’s a quick list of frequent blood disease’s and blood disorders we help underwrite and secure life insurance for at Good Life Protection.
Now we move into how cancer can impact your life insurance. Here’s a full guide for cancer survivors and cancer patients in case you need further information on particular cancers and how it can impact your life insurance rates and approval chances.
Summary of Cancer and Life Insurance
Just because you didn’t see your cancer listed or didn't see the opportunity to read full reviews on how to purchase life insurance with individual cancers above, does not mean we don’t handle it. Life Insurance for cancer survivors and cancer patients will never be easy but if your willing to let us help, we manage any case regardless of pre-existing medical conditions with care and diligence.
Always feel free to leave a comment below about a specific condition. We would love to update the list to help everyone out! If not, don't forget about our full guide to cancers that you can see here to help get started finishing your life insurance journey.Full Guide to Life Insurance with Cancers
Now we move into other pre-existing medical conditions that can impact your life insurance rates. These are known as inflammatory and immune system disorders, and yes, they can sway the decision and overall pricing of your life insurance substantially if not navigated and handled correctly.
Let’s dive into them.
Inflammatory and Immune System Disorders
Let’s see the impacts of how auto-immune and inflammatory disorders can have on your life insurance application.
That about covers the main auto-immune disorders and inflammatory disorders. Let’s move into the mental health area of the underwriting process for an approved life insurance application. Unfortunately, mental health is one of the most significant and most dominating health issues we see daily.
Several mood disorders can fall into this category and everything in this category can have an impact on your life insurance application if you don’t work with the right agency or agent that can help you navigate over 50 life insurance companies to find the best fit.
What makes it a little more frustrating, is yes, it can have significant impacts on your life insurance but sometimes it can be easy to get approved.
Often, it’s the matter of just working with limited options that leads to you being declined for life insurance if you fall into this category.
We would like to put an end to this to help guide you down the correct path. We are always here to match you with the best company and to ultimately find the lowest overall price. Let’s look at the most common mental health disorders and conditions we handle at Good Life Protection.
Mental Health and Mood Disorders and High Risk
A Full Breakdown
Let’s take a look at how much mood disorders and mental disorders can impact high risk coverage rates and overall approvals
Now we need to dive into the different scenarios and situations you may face with Congenital Disorders when trying to obtain life insurance. We handle many of them over here at Good Life Protection and want to give you an easy to navigate look at them.
Here’s a full break down of the congenital disorders we see frequently and how they can be handled. Feel free to visit the individual guides for each for more information.
Congenital Disorders and high Risk Coverage
A Full View and Breakdown
Yep, some of you may even be impacted by Ear disorders and yes, they can impact your rates. I know it’s a bit shocking and most likely they won ‘t hurt your approvals or rates but they definitely could. It really just depends. Let’s take a look at ear disorders and life insurance and see what we are working with.
Ear Disorders and high risk coverage
A Full Breakdown
Now that we have covered the ears, let’s move onto the eyes. Let’s dive into how eyes could impact your rates and some typical conditions we see with frequency at Good Life Protection
Eye Disorders and High Risk Policies
A Full Breakdown
Here’s a full list of the eye disorders most frequently seen by GLP when helping individuals obtain life insurance.
Let’s move into common infections and talk about they can impact your life insurance. Infections come in many shapes and sizes but we do see some infections way more than others so for the sake of time, we are going to break those down for you first.
Life Insurance - and Infections
A Full Breakdown
Now, we also have high risk life insurance strictly due to injuries or accidents. It’s unfortunate but it definitely does happen so let’s cover a few of them briefly.
Injuries and Accidents for high risk cases
Full Breakdown and Guide
Good Life Protections also works with individuals currently having issues with endocrine and metabolic pre-existing medical conditions. Usually, coverage can be found for these individuals reasonably easy, but it also depends on many circumstances. Let’s dive in and take a look.
metabolic and endocrine disorders and high risk coverage
A Full Guide
Here’s a quick overview of some of the main high risk cases we see with metabolic and endocrine disorders. Feel free to see our in depth guides for each high risk disorder for more information if you are still left with questions after reading.
Now let’s take a look at the impacts it may have on your life insurance application and the process of getting approved. Here’s a quick breakdown for you.
As we can see, you have some good life insurance companies to choose from if you have any of these conditions which will ultimately lead you better approvals and lowers or overall rates. Now we need to get into the next common health concern we see with individuals trying to apply for life insurance.
High Risk Life Insurance with Muscular Skeletal Disorders
muscular skeletal disorders And High Risk Coverage
A Full Breakdown
Muscular skeletal disorders and life insurance can also be a match NOT made in heaven. Let’s look at some of the common issues we work with and the overall impact it may have on your life insurance journey, price and approvals.
Let’s keep pushing forward and cover high risk insurance plan for individuals with Neurological disorders. Neurological disorders can be a bit tricky when applying for life insurance, but we do it frequently. Here’s a look at the most common neurological diseases we help individuals obtain life insurance with.
Neurological disorders and high risk plan
A Full Breakdown
Here’s a look a the impact these disorders can have on your life insurance.. It’s important to know that these cases are also very hard to pinpoint actual results during the life insurance application process. It will depend on many outside factors. Nonetheless, here’s an overview of the impacts neurological disorders may have on your overall rates and approval for life insurance.
That transitions us into Oral and Gastrointestinal disorders and how it can impact your life insurance rates and approval chances. These disorders are much more easy to navigate compared to some of the other high risk medical conditions some individuals face when trying to obtain life insurance.
Oral and Gastrointestinal Disorders and high risk
A Full Breakdown
And here is a look at how these conditions can impact your life insurance application and ability to be approved for coverage.
Let’s transition over to Renal and Urogenital disorders and life insurance and the impact it can have on your life insurance application.
renal and urogenital disorders and high risk coverage
A Full Breakdown
Here’s a quick breakdown of the top Renal and Urogenital disorders we see frequently.
Commonly seen disorders
Lung Conditions/ Respiratory Disorders
Lung Disorders we Frequently Work With
Lung Conditions and Life Insurance
Life insurance with lung conditions may require some patience. It's an extremely common issue we see. In fact, we would go as far to say that this is a top 3 most common category for pre-existing medical conditions and life insurance.
That's why we have a full guide that you can see here.Life Insurance with Lung Conditions and Respiratory Disorders- Read Here
Now we have to cover some ground for all the tobacco users reading. Yes, tobacco use can not only place you in high risk coverage classes but it can also compound the damage and the way the life insurance company views you if other pre-existing medical conditions are present as well.
Let’s it because it’s important and very common.
Smokers and Tobacco Users
First and most importantly, you have to understand that every form of tobacco is treated differently. Smokers will pay more for life insurance. Especially if handled incorrectly. Some have deeper impacts on your ratings and price you will ultimately pay. We break these down further in our full guide for tobacco users which you can read by clicking the link below.
Otherwise, grab a coffee and get a smoke in now or throw in that pouch so we can knock this out and give you the 411 on how smoking can impact life insurance ratings.Life Insurance for Smokers and Tobacco Users- Full Guide- Read Here
Life insurance for daily smokers is always going to be easy to obtain but at overall higher prices and will also depend on how high risk you're considered outside of the tobacco use. It will also depend on what rate you pay based on if you currently have any other pre-existing medical conditions.
Who offers great rates for smokers?Banner Life Insurance Company- Read Full Review
Vapers- Electronic Cigarettes
Vapers can technically get under the rug by looking at companies such as Prudential who offers non-tobacco rates for e-cigarette and vape usage. Overall a pretty good deal if you are still using the fad from 2015.
Who offers great rates for Vapers and electronic cigarettes users?Lincoln Financial Group- Read Full Review
This will depend on many factors, and we recommend you read our individual post about marijuana use and life insurance but overall, it’s still entirely possible to obtain life insurance if you’re a fan of the old “Mary Jane”
Who offers the best life insurance rates for marijuana users?
Prudential Life Insurance Company- Read Full Review
Chewing tobacco also has the potential of landing you non-tobacco rates if you choose the correct company to work with. It can be tough knowing all the In's and outs of life insurance and high-risk life insurance but don’t worry. We will guide you toward the lowest rates whether you chew tobacco or not.
Who offers great rates for Chewing Tobacco Users? Give Cincinnati Life Insurance a crack it. They are known to have great rates for individuals who chew tobacco.Cincinnati Life Insurance- Read Full Review Here
Pipe Smokers, you’re in the same boat. Depending on the company you pick, you achieve decent overall rates on your life insurance policy. It’s just going to depend on all other outside factors about your general health and will also depend on how you do on your life insurance medical exam.
Only time will tell, but we are confident we can get you the lowest rates possible. Guaranteed.
Who offers the best rates for pipe smokers?Varies Based on Overall Use
Often non-tobacco use rates are possible with life insurance companies such as AIG (American General Life), Prudential Life Insurance and Lincoln Financial Group.
Who offers the best rates for cigar users? Our vote would be for American General Life Insurance (AIG).American General Life Insurance- Read Full Review Here
Medications and Life Insurance
Now, we need to move into medications. This is by far the biggest downfall consumers face when attempting to secure life insurance coverage. We are going to go in depth on this. If you notice a medication not listed, be sure to drop a comment below.
We want everyone taking medications to have an honest chance at obtaining life insurance at affordable rates so we try not to leave anything out.
Let’s dive in.
medications and prescription use
Your Full Breakdown
If you are reading this blog, my best guess is that you have some underlying medical condition and what to see how much high risk insurance rates really add up to. It has most likely got you a bit skeptical about your chances of obtaining life insurance. Another scenario you may be in is you know you can get coverage, but what will it cost you? All valid questions.
My first point I would like to make is thinking back to why you wanted the life insurance in the first place. Many consumers, lose sight of the real meaning behind life insurance. You get into conversations with agents and all the sudden the purchasing decision becomes negotiations on ratings and price.
Insiders tip– We have zero control of the rates or price. Even with high risk life covergage rates! No matter how much you believe you are a preferred plus or the price can be swayed lower, it cannot. All we can do is be a helping hand for you and that is why we are here.
Myself or other independent life insurance agency owners do not set these prices. We are only here to help. Good Life Protection wants to give you honest recommendations of your best options of protecting your family.
Actuarial tables are a primary source of information life insurance carriers use to determine what rates they set for life insurance. They are tables or spreadsheets that show the probability of an individual passing away before an upcoming birthday.
Why does this matter? It plays directly into your rates. Insurance carriers do not have actuarial tables for individuals at certain ages.
They have tables from past experiences with medical conditions. These help them predict outcomes. Think of it as a giant pool of data. It is almost like how you found us on google. Yes, we know you googled life insurance with high risk to find our valuable information.
Over time, life insurance carriers have compiled the data from thousands of individuals for certain medical conditions. The experience they have had with each condition decides the favorability of them insuring you. Also, what the rates may be.
This is how they can pay death claims for the loyal policyholders. Without this data gathering and being selective, they would become insolvent. This would result in affecting thousands of policyholders.
Mortality Tables –
Formula Part 2
Life insurance carriers also use mortality tables. They would use these when looking at high risk policies and high-risk individuals. A mortality table seems strikingly close to an actuarial table.
A mortality table breaks down segments of the population. It also analyzes the likelihood of a group of individuals dying at certain age intervals. This is another factor of the equation when it comes to issuing high-risk life insurance policies. They must get comfortable with the statistics to feel warm and fuzzy about offering the high-risk life insurance coverage.
How do High Risk Rates and Ratings Work?
Life insurance ratings work straightforward. You have a total of 12 possible ratings you can achieve. This is not including “flat extra charges” which we will discuss soon. Also, note that the 12 ratings can vary from life insurance carrier to life insurance carrier. Sometimes they use table ratings such as Table 1 and Table 2 all the way up to Table 8. Some use letter abbreviations such as Table A through Table G.
Typically, you will start at a preferred plus. This rating is extremely easy to get knocked out of. You do not only have to be healthy, but the rest of your lifestyle needs to be squeaky clean as well. Preferred plus would not be a class you will fall into for a high-risk life insurance policy. Preferred plus can also be known as, “Super Preferred” or “Preferred Best”.
-To achieve this rating, you would need to be…
Within the height and weight guidelines. Let’s first look at this. Here’s an example
Example Build Chart we use when determining your possible rates for life insurance
As you can see, a preferred plus for a male, you need to be at a pretty healthy weight. This is the same for females. You could be deemed high risk from your height and weight ratios on a medical exam. Even being pregnant is a factor when getting you life insurance policy.
These tables cut off at standard ratings which technically is not a high risk policy rate or rating. You will begin adding table ratings for extra pounds. Each table rating added will typically add 25% to your life insurance policy cost. Once you fall out of the standard weight zones, you are technically considered high risk in the life insurance carriers eyes.
- Side note for all you bodybuilders out there. Although a healthy figure does help, you could still be deemed high risk if you are too far out of the charts listed above. Speak with an agent for clarification.
During your paramedical exam, you will have measurements taken of your shoulders, chest, and waist. This is where if you are very stocky or built, you still have a chance of achieving excellent rates. This is not always though.
Let’s dig a little deeper into table ratings for high-risk individuals and high-risk life insurance.
In the following example, we are going to run the rates beginning at preferred plus (best rating) all the way to a Table 8 (worst rating). This will allow you to see the difference in the pricing for the life insurance carriers.
The following illustration will be for a male (non-smoker) 30 years old as well as male 30 years old (smoker). We will work our way through the possible high risk insurance plan rates you may achieve.
250,000 30 Year Term Policy (Non-Tobacco)
- Side Note- Table 2 is a very common rating for type 2 diabetics whose condition is controlled. We will cover this more, later in the article.
After Table 8, unfortunately, the next step is a decline. The tables do not drop down any further than this. The tables we reflected on the high-risk life insurance was also only covering non-tobacco users.
Let’s look at the same tables for someone who likes the nicotine.
250,000.00 30 Year Term Policy ( Tobacco )
As you can see from our demonstration, high-risk life insurance can become costly. Especially, when you add in nicotine use.
Depending on how closely you viewed the images, you will also notice the same life insurance carriers tend to be the top dogs on pricing. **These were taken from the cheapest to the 5th cheapest options across the board.
All these carriers have special niches that they work with when it comes to high risk individuals seeking life insurance. It is important to not chase the cheapest premium because most likely it will cost you later. Let an agent help guide you through the process.
A great example of this would be Protective Life Insurance Company. They are fantastic insuring individuals with heart issues; typically, at a Table 6 rating (high risk life coverage). Yet, when viewing the images, you may be quick to jump to the cheapest option who often will flat out decline you. Life insurance agents are still important in these situations; you should lean on them. At Good Life Protection we have helped thousands of individuals secure high risk life policies. Individuals who have a wide variety of health conditions and high-risk factors.
Now that we understand how table ratings and life insurance ratings work, let’s dive deeper into the high-risk part of life insurance. Many other factors can be used to determine if you are going to be in the market for high risk life plan.
High risk life coverage begins with your overall health. Health conditions alone can quickly put you into a high-risk life insurance classification. Or it can even possibly be declined for life insurance.
Some conditions will change your ratings and overall ratings more than other conditions. As we discussed before, it is always important for you to look for a life insurance agent that understands the underwriting niches of each carrier. It can make for huge cost savings. Again, life insurance carriers such as Prudential or Protective Life are great with heart conditions. Phoenix Life Insurance and Banner Life/ William Penn are great with type 2 diabetics and substandard life insurance pricing.
According to Lifeline 24- These are the top conditions affecting people over the age of 50.
These conditions will dramatically change your life insurance rates. These will place you in high risk insurance classes. It is going to be the underwriting process and diligence of your agent that gives you a chance at affordable life insurance rates. Let’s break down an example of some basic underwriting of one of these conditions.
Diabetes- Type 1 and Type 2- A glance at the Underwriting Guidelines
Agent’s, including myself at Good Life Protection, are experts at understanding where to begin the process with underwriting for high risk life policies. In this example, we would start by looking at your medical condition in an advance underwriting engine. This is for type 2 Diabetes. This is going to give us a baseline of where to begin the process with you. These results are linked to all the most reputable companies that Good Life Protection represents.
|Type 2 - Single Medication or Diet Controlled||Type 1 - Diagnosed < 30|
Age of Onset 0-17 - Decline
Age at Issue - 18-34 Table 4-6
Age of Onset 18-34 - Table 3-5
Age at Issue - 35-49 Table 3-5
Age of Onset 35-49 - Table 2-4
Age at Issue - 50-65 Table 3-4
Age of Onset 50-65 - Table 1-3
Age at Issue - 66+ - Table 2-4
Age of Onset 66+ - Standard Plus - Table 2
Add 1 Table per 1% of A1c over 7%
Add 1 table per 1% of AIC over 7%
If 2 Medications - Add 1 Table
Terms Included in this example-
Fully Underwritten- Simply means it will need the full process. Good Life Protection always recommends full underwriting for most high-risk life insurance. Certain exceptions do exist however.
For those of you who have shopped life insurance, this is something to why they ask all those invasive questions over the phone. If we do not understand your condition, it is very difficult to help you.
If a life insurance agent does not ask these questions and you have a high-risk concern, Good Life Protection would recommend looking elsewhere. You will be in for quite a surprise on your life insurance rating you were quoted, compared to what you receive. It would be a complete waste of time without proper questioning and transparency with your life insurance agent.
Your options do not end at fully underwritten life insurance policies with high risk life coverage. You may still qualify for non-medical life insurance as well. Let’s look at the same example. An individual with type 1 or type 2 diabetes.
American National - ANICO
Phoenix Safe Harbor Term
Under Age 30 - Decline
Age 31 and Up; Mild-Moderate, Non-Tobacco; Standard to Table 8
Severe - Table 3 to Decline
As illustrated above, you can see that American National Life Insurance and Phoenix Life Insurance Company will offer life insurance with no medical exam. These can be extremely beneficial life insurance policies to consider. No invasive medical test, fast turnaround, and easy approval processes.
More on Medications
Medications can dramatically change your fortune with high risk life coverage. This becomes especially true if you take several medications. It does, however, make a big difference in what the medication is for and how well it is controlled.
Life insurance carriers also like to see “stabilization” with high risk cases. Let’s assume you take medications for blood pressure. If it is controlled and you are not switching medications every six months, you may qualify for standard life insurance rates or better. This would knock you back into the “non-high-risk life insurance bracket”. According to nclexonline.com, these are the top 10 prescribed medication of 2018.
Since high blood pressure and high cholesterol dominate medication’s prescribed, we can assume it is the most common health concerns we face. Let’s look at a few underwriting examples of how they can place you in high risk insurance classes and table ratings.
American National Life Insurance and Phoenix Life Insurance will be our example carriers for high blood pressure. The illustration is also showing options for getting life insurance without needing a medical exam completed.
American National - ANICO
Phoenix Safe Harbor Term
Good news, right? Standard rates sound like a win. It does, however, get more complicated. Depending on the number of medications needed to control the high blood pressure, it could knock you down into the table ratings we discussed before.
Many life insurance carriers will begin placing you in high risk insurance classes at medication number three. This varies from company to company.
It also makes a big difference if you have a second condition complimenting the first condition.
Example- Let’s say you take two medications for high blood pressure and it is controlled. You also take two medications for type 2 diabetes; most likely you will fall into the high-risk classes.
Occupation and Lifestyle
Yes, it is true. Your job and current lifestyle can also hurt your chances at obtaining life insurance. Unless you are an active duty military member you most likely will not face declines. You also will not face the high-risk rating tables. It is often treated with something known as “flat extra fees”.
Flat Extra Fee’s – An additional amount added to the premium per $1,000.00 of face value.
Since Good Life Protection frequently blogs about dangerous occupations and life insurance, let’s use police officers and firefighters for our example. Let’s say you are a police officer in Chicago. That alone is most likely no issue with the life insurance carrier. This would not place in you a high-risk class or cause a “flat extra” fee. But, let’s say you are also a member of the narcotics team and bust down drug dealer’s door serving felony warrants. This would be a completely different story.
The life insurance carrier would not rate you into a different high-risk class. What they would do, is most likely assess the flat extra fee onto your life insurance policy and monthly premium.
This would be based on an annual amount per $1,000.00 of coverage.
Let’s say you are a 30-year-old male, nonsmoker, seeking $500,000.00 in coverage over 10-year level premium term insurance. Here would be your top three rates from starting with the lowest rates possible across all life insurance carriers.
If you were accessed the flat extra charge for the high-risk occupation, your rate could have $2.50 added per $1,000.00 in coverage annually.
Taking your final rating to the following charges.
Other dangerous professions that could increase your monthly premiums for life insurance:a
If your profession falls into one of these categories, it does not mean you will be a victim of higher life insurance premiums or high-risk life insurance. Some carriers view occupation completely differently than other carriers. Fill out an instant quote form to the right or call Good Life Protection today. Let’s discuss your unique situation and find the best possible rates for life insurance.
Dangerous Hobbies and Activities
The illustration we created earlier for the $2.50 flat extra charge, is the way most of these carriers would treat these risks. They could also add exclusions to the policy. Basically, you would be covered for all forms of death except the specific exclusion. If you are a frequent skydiver, you may be covered for all forms of death. But, the policy can state that in the event of death due to skydiving, your policy will not pay the death claim.
Work closely with your agent to ensure that you understand all the fine print of the life insurance policy. If you absolutely need the coverage for such exclusions, work with your agent to see what the best offers may be for your unique situation. High risk life insurance is simply as it states. It is high risk. Not impossible. Just high risk.
Criminal history can show the life insurance company many things. First, it can indicate very risky behavior or dangerous behavior such as excessive drinking or drug abuse that can lead to other potential problems such as drug overdose.
Your criminal history is most likely not going to assess you “flat extra charges” or place you in a high-risk life insurance bracket. It is going to cause a life insurance carrier to decline you all together. Most carriers will want to see no felonies for 10 years, but some exceptions do exist. Carriers are also very strict on driving or “Motor Vehicle Reports”. If you have many driving under the influence of alcohol or drugs, you may not be able to get some coverage for quite some time.
A good alternative for coverage if you fall happen to have a bad driving record would be, 5 Star Life Insurance.
5 Star Life Insurance Company will not pull your motor vehicle report. The only catch is that you cannot be declined for life insurance before applying with them. This is where working with an independent agent helps greatly. If you apply with a carrier first, get declined, and then attempt to pivot to 5 Star Life Insurance, it will also be declined. Make sure you know your options before submitting applications blindly.
Financial History and Credit
Your financial background will also play a large role in your chances of obtaining life insurance. Bankruptcies is one of the biggest items that life insurance carriers will look at. Bankruptcies come in a few shapes and sizes and it does make a difference which bracket you fall into.
Chapter 7- This is the simplest form of bankruptcy. Your debts are virtually eliminated. A trustee will determine which parts of your property to sell to distribute to your collectors.
Chapter 11- This primarily pertains to businesses. You will most likely merge your debts and find a method to provide recovery and debt repayment.
Chapter 13- This version of bankruptcy, you get to keep your property. Yet, you will most likely sacrifice future earnings on a repayment plan to pay your creditors back.
Current Status of Discharge Dates and Bankruptcy
Life insurance carriers will want to know when and if your bankruptcy has been discharged. This can make a big difference of how the life insurance carriers will proceed with offering coverage to you. If your bankruptcy has been discharged and you are financially getting your feet back under you, you have a strong chance of not having large repercussions. Also, a strong chance of not being placed under high risk life insurance.
Postponing your application
You should always speak to an independent agent with cases of bankruptcy and life insurance. Often, he or she may be able to advise you to postpone your application. Other times, you may be perfectly fine to put your application in and get coverage immediately. At Good Life Protection, we work with bankruptcy often. Life insurance carriers do exist that will not consider it high risk.
A few good carriers to consider would be:
- Foresters Financial- Most Lenient Non-Medical Life Insurance Carrier with bankruptcy
- Lincoln Financial- Most Lenient with Chapter 7 Bankruptcy and often, no need to delay application.
So, now that you know what might make you be placed into high-risk life insurance, what can Good Life Protection do to help you through the process?
Knowledgeable Experienced Life Insurance Agents
We are not trying to beat a dead horse with this advice. It is however paramount to your chances at life insurance at premiums you can afford. You need to have life insurance agents who know what they are doing. Agent’s that have a large basket of life insurance carriers to work with. Not just any life insurance carriers, but the top life insurance carriers. They need to be experienced with asking the difficult questions and making sure you cover all basis.
The agents also need to be willing to go above and beyond to place life insurance in force for you and your family. Tricks of the trade exist that make high risk life insurance more manageable and easier to place.
Quick quoting can be a very powerful tool for independent life insurance agents and independent agencies. I personally represent over 40 life insurance carriers. Sometimes, medical conditions arise that I am not all too familiar with.
Sure, we see a lot of the same medical conditions daily but every other day something new arises. Surprisingly enough, the life insurance carriers are already on top of it. They are aware of medical conditions in today’s population. They most likely have tentative rates and rough guesses at outcomes of a life insurance application.
What is quick quoting?
Let’s say you call me and have several medical conditions or a medical condition I am not familiar with. Or, let’s say I am not sure how the life insurance carriers will underwrite it or rate you. I would simply reach out to all the life insurance carriers I represent and present the facts. I would shop the entire market for you all in a day’s work. A live underwriter will field the request and examine the facts. Also, get back to us with a good guess of where we could land, or how high risk of life insurance we are looking at.
This a huge benefit to the consumer. Would you rather call 40 carriers and speak to 40 agents who are going to push you buy a policy at a risk class you are not? I think it is a better avenue to present the case one time to one agent with the carriers at his or her disposal and allow him to do the work for you. It is our job and we take pride in helping.
Cover Letters- Easy way to lower high risk coverage rates.
Cover letters are a bit more advanced than quick quoting and come second in the process for a high-risk life insurance case. Once the agent and client agree on a carrier, we are going to apply. However, underwriters are a bit like police detectives. The more information you deliver early on, the happier they are. Surprisingly enough, the more it can help your life insurance rates. Let’s say you had a bankruptcy on your financial background.
We find a life insurance carrier that will accept this risk. Instead of submitting the life insurance application and answering the question “yes” to prior bankruptcies, we explain the circumstances. I have personally written hundreds of cover letters for individuals to help provide them with better life insurance rates or push them into better risk classes for coverage. It details the information in depth for the underwriter and allows the agent to “dress things up” a bit.
A life insurance underwriter can only go off the information in front of them. The more the better. Especially, if it is information that explains things or makes a negative situation look more positive.
Shopping your Life Insurance Case for the Best Possible Rates
What do we mean shopping your case? Well, it’s exactly how it sounds. We are going to get your approval back or sometimes it may be a declined application. Following the approval/decline we are going to send it off to the same companies literally we sent the cover letter and quick quotes to and see if we can obtain a better offer and price.
No need to thank us. Your welcome. It’s the benefit of working with a Life Insurance Agency with access to over 60 life insurance companies that all have unique underwriting niches and ways to help you with your desire to purchase life insurance even while being deemed high risk or having pre-existing medical conditions.side form.
Guaranteed Issue Life Insurance- The last resort?
What’s is guaranteed issue life insurance? Well, in short, it’s a form of life insurance that isn’t going to dig into your health history or your pre-existing conditions.
In exchange for this luxury, you are going to have a 2-year waiting period where you will only get your money back plus 10% interest earned. After the 2 years has passed. You will get the full death benefit that you purchased on day 1.
If you need to learn more about some basic terminology with life insurance or the kinds of life insurance you can purchase, you can visit our life insurance for dummies area. No, we don’t think you dumb, we just thought it was a clever, catchy name to put all general questions about life insurance in for you to view.
We wanted to give you an extremely in depth guide to understanding high risk life insurance rates. We hope we did just that.
Good Life Protection understands high risk life insurance and we want to help. Many different items and different criteria can bump you into high risk life insurance. It is important to understand that you do have options.
The premiums can be cheaper than you might think and you will not always be declined. Most importantly, do not be afraid to explain your situations to a licensed agent. Above all, work with top rated life insurance carriers and shop the open market OR allow an agent to do so for you. We would love to hear from you. Drop a comment below or get your free high risk life insurance rates on the right
Josh Martin is the founder of Good Life Protection. He began his career as a captive Agent working for New York Life Insurance Company. After continued education and designations, Josh founded Good Life Protection to provide consumers with more options and insurance that truly fits into your budget and health classification.