Life Insurance Guide for High-Risk Individuals (2024)
High-risk life insurance is a broad term insurance companies apply to policyholders who are considered more of a risk to insure. Health issues, pre-existing conditions, and dangerous hobbies or careers can classify you as high-risk. Life insurance for high-risk individuals isn't hard to find, but you can expect to pay twice as much or more for coverage. Shop around online for high-risk life insurance quotes to secure the best rates.
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Chris Abrams
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Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
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UPDATED: Nov 18, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Nov 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Smoking, pre-existing medical conditions, and dangerous careers or hobbies can classify you as high-risk
- Life insurance for high-risk individuals costs twice as much or more than standard life insurance rates
- Most life insurance companies use mortality statistics to determine high-risk life insurance rates
High-risk life insurance is a broad term insurance companies apply to any policyholder who is considered more of a risk to insure. Health issues and dangerous hobbies or careers are different types of risk in insurance that can affect your life insurance rates.
You can still find life insurance with a pre-existing condition, but you may have to shop for policies from high-risk insurance companies.
Use this guide to learn what high-risk life insurance companies look for, how high-risk life insurance rates are determined, and where to find affordable high-risk life insurance policies.
If you’re shopping for life insurance for high-risk individuals, use our free tool and start comparing insurance quotes from local companies to get the cheapest rates near you.
What is high-risk life insurance?
High-risk life insurance is coverage that’s available to individuals who are riskier to insure based on their career, hobbies, or health. Risk categories are applied to whole life, term life, and universal life insurance policies.
Life insurance risk categories include:
- Substandard
- Standard: Smoker/Non-Smoker
- Preferred: Smoker/Non-Smoker
- Preferred Plus Non-Smoker
Substandard applicants are considered high-risk due to a history of smoking, a family history of illness, pre-existing conditions, and more. Insurance companies look at these and other lifestyle choices to determine your high-risk insurance premiums.
Read more: Best Life Insurance Policies for Smokers
How do insurance companies define risk categories?
Risk and insurance are determined by occupations, hobbies, habits, and pre-existing health conditions. However, each life insurance company will have its own requirements, rates, and restrictions when it comes to writing high-risk policies.
Typically, insurance providers will look at mortality rates and pull statistics from the CDC or the U.S. Department of Labor when determining life insurance costs for high-risk individuals.
For example, the fact that loggers are 23 times more likely to die on the job means they are likely to pay more for life insurance.
If you are in a high-risk profession, take advantage of an employer group insurance plan if it’s available. Group insurance plans can help you save on life insurance coverage.
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How do insurance companies determine high-risk life insurance rates?
When you apply for life insurance, your provider will determine your level of risk. You may be considered high-risk based on your career or lifestyle choices, and your provider will charge you accordingly.
For example, being a smoker makes you a higher risk to insure since smoking increases the likelihood of respiratory and cardiovascular diseases.
Statistics show that smokers die 10 years earlier than non-smokers and end up paying twice as much for high-risk life insurance. Learn more in the tables below.
Average Annual Term Life Insurance Rates for Smokers by Age
($100,000/10-Year Policy)
| Smoker's Age | Average Annual Rates for a Male | Average Annual Rates for a Female |
|---|---|---|
| 25 | $321.76 | $248.75 |
| 35 | $360.23 | $286.18 |
| 45 | $637.51 | $493.20 |
| 55 | $1,364.09 | $991.63 |
| 65 | $3,245.05 | $2,235.31 |
High-risk term life insurance rates for smokers can average around $26 per month for a 25-year-old male, as compared to the $11 per month some non-smokers pay in the table below.
Average $100,000 Term Life Insurance Policy Rates for a Non-Smoker by Age, Gender, and Term
Age (Non-Smoker) Monthly Rates for a $100,000, 10-Year Policy for Men Monthly Rates for a $100,000, 10-Year Policy for Women Monthly Rates for a $100,000, 20-Year Policy for Men Monthly Rates for a $100,000, 20-Year Policy for Women Monthly Rates for a $100,000, 30-Year Policy for Men Monthly Rates for a $100,000, 30-Year Policy for Women
25 $11.14 $10.78 $12.26 $10.79 $15.20 $12.90
30 $11.02 $10.89 $12.04 $10.96 $15.87 $13.41
35 $11.31 $11.34 $13.02 $11.69 $16.67 $14.32
40 $12.74 $12.43 $14.99 $13.42 $21.69 $18.10
45 $15.67 $15.26 $19.61 $17.09 $29.03 $23.15
50 $20.23 $19.01 $26.72 $22.08 $40.18 $32.24
55 $27.51 $24.16 $41.17 $31.31 $79.06 $55.42
60 $39.57 $32.50 $66.33 $50.76 Not Available Not Available
65 $65.54 $48.87 $113.44 $80.73 Not Available Not Available
These life insurance rates are just averages, and your rates can vary based on your age and gender. High-risk life insurance rates are impacted by your career and lifestyle choices as well, so it’s important to shop around online for insurance quotes before you buy in order to secure the best rates.
Case Studies: Life Insurance Guide for High-Risk Individuals
Case Study 1: Sarah’s High-Risk Term Life Insurance
Sarah is a 35-year-old individual with a history of heart disease. She wanted to secure a life insurance policy to ensure financial protection for her family. However, due to her pre-existing condition, she fell into the high-risk category for life insurance.
Sarah used an online comparison tool to gather quotes from various insurance companies that specialize in high-risk cases. After reviewing the options, she selected a term life insurance policy that provided the coverage she needed at a reasonable premium rate. Sarah was able to secure the policy and have peace of mind knowing her family would be financially protected.
Case Study 2: David’s High-Risk Whole Life Insurance
David, a 40-year-old individual, worked as a professional firefighter. Given the nature of his occupation, he was considered a high-risk individual by insurance companies. David wanted a life insurance policy that would provide lifelong coverage and also accumulate cash value over time.
He utilized the services of an insurance agent who specialized in high-risk cases. The agent helped David navigate the underwriting process and find a whole life insurance policy that suited his needs. Although the premiums were higher compared to standard policies, David understood the importance of having comprehensive coverage given the risks associated with his career.
Case Study 3: Lisa’s High-Risk Guaranteed Issue Life Insurance
Lisa, a 50-year-old individual, had a history of cancer and was unable to find affordable life insurance due to her pre-existing condition. She decided to explore guaranteed issue life insurance, which is specifically designed for high-risk individuals who may be declined coverage elsewhere.
Lisa applied for a guaranteed issue life insurance policy and was approved without the need for a medical exam or extensive underwriting. While the coverage amount was limited, Lisa felt relieved knowing that she had some form of life insurance protection in place.
How do I buy life insurance for high-risk individuals?
Since you’re likely to pay more for life insurance as a high-risk individual, shopping around online for high-risk life insurance quotes is the easiest way to find affordable coverage.
Once you find a provider with quotes that fit your budget, you can contact them to discuss your coverage options and ask about any life insurance discounts you may qualify for.
Companies offering high-risk life insurance include:
- Prudentia
- AIG
- Transamerica
- MetLife
- Banner Life
- Principal Life
- Lincoln National
If you need to find companies near you offering life insurance for high-risk individuals, enter your ZIP code below to find affordable high-risk life insurance quotes from local companies.
Read more: Banner Life Insurance Review & Complaints
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Frequently Asked Questions
What is considered a high-risk individual when it comes to life insurance?
A high-risk individual in the context of life insurance refers to someone who poses a greater likelihood of experiencing health issues or engaging in activities that increase their risk of mortality. This can include individuals with pre-existing medical conditions, smokers, those with a hazardous occupation or hobby, or a history of serious illnesses.
Can high-risk individuals obtain life insurance coverage?
Yes, high-risk individuals can still obtain life insurance coverage. However, the process may be more complex, and the premiums are likely to be higher compared to those for individuals with lower risk profiles.
How can high-risk individuals find life insurance coverage?
High-risk individuals can find life insurance coverage by working with insurance agents or brokers who specialize in high-risk cases. These professionals have expertise in navigating the complexities of underwriting for high-risk individuals and can help find suitable coverage options.
What factors affect the premiums for high-risk individuals?
Several factors can influence the premiums for high-risk individuals. These include the individual’s age, overall health condition, medical history, lifestyle choices (such as smoking or excessive drinking), occupation, and participation in high-risk activities.
Are there specific types of life insurance policies for high-risk individuals?
High-risk individuals have access to various life insurance policies. However, some policies may be more suitable than others depending on the individual’s circumstances. Term life insurance and guaranteed issue life insurance are often considered viable options for high-risk individuals.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
Secured with SHA-256 Encryption
Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.