Expert advice for getting a high risk life insurance policy

Do know your risks

Something you may not think is risky, can be seen as risky in the eyes of an insurance company. For example, someone who scuba dives is not necessarily a high risk, unless they dive to certain depths, dive into wreckage, or perform work underwater without supervision or a dive partner. Even if you are licensed professionally, you can still be considered a high risk for your activity.

Medically, something as simple as mild to moderate blood pressure or higher than normal cholesterol levels can inhibit you from receiving the best possible rates if you can’t prove stability and health maintenance. More serious conditions like cancer, heart disease, kidney disease, or mental issues can be instant disqualifications depending on your severity.

Do use an independent agent

In order to have the best possible chance of not only an approval, but a great premium, you’ll want to utilize an independent agent. An independent agent is one who has access to not one, but many carriers, who are willing to review your case. If he is an experienced agent, he will know which carriers will be most aggressive in offering coverage for someone with your particular risks. Never use a captive agent, or one who can only offer you coverage from just one insurance company.

Do be patient

Obtaining a high risk life insurance policy can take more time than the already lengthy process for getting a standard policy. Be patient. You’ll be happy you took your time once it’s over and you’ve been approved for the best rates. You’ll be asked for certain information for your particular risk profile, and they may come back with questions multiple times to clarify.

Do supply all necessary information

Try to give your agent as much information as possible before you apply for a high risk life insurance policy. Leaving out even a small detail can have a great impact when considering all the different underwriting guidelines from all the different carriers. When you’re asked for additional information or even to supply records and data, be as thorough as you can. This will only help you–not hurt you.

Do appeal when necessary

Most consumers don’t know you have the option to appeal the underwriters decision if you think you should have been approved or been given a better rating. Now, just because you aren’t happy with the results doesn’t mean you just appeal. If you feel the decision from the carrier did not reflect your current situation, or even feel there has been misinformation provided, you should appeal. When you do, be ready to provide either proof of why the underwriter made a wrong decision, or have supporting and new information which could help your case.

Do not lie

By far the most common attribute for someone applying for high risk life insurance who is trying to get a better rating is to leave information out, hoping the underwriters won’t discover it. First, the carrier will find it. They have access to medical records, the Medical Information Bureau’s information on your history, your Motor Vehicle Report, and they can even request documents directly from doctors and hospitals you have visited. Second, if you were to die of a certain risk which you did not disclose, the life insurance company may revoke your insurance proceeds.

Do not apply to multiple carriers at once

Some consumers apply to multiple carriers thinking they can just take the most advantageous offer they’re given. This is not the case. Life insurance companies can see all the other companies to whom you’ve submitted an application, and decline you for having done so if they feel there would be too much outstanding coverage in total. If you deal with an independent agent who is knowledgeable, they’ll be able to point you to the best carrier from the start.

Do not wait

Waiting too long can have a negative impact on applying for high risk life insurance. If you, for example, have a strenuous medical condition, some are viewed as a higher risk as you age. This may not be the case for every person, but there are situations where it’s imperative. Let’s say someone has a heart attack. Applying for coverage the next week is a very bad idea. You will most definitely be declined, and the declination will stay on your record for years forward as you begin to look for insurance in the future.

Do not bind coverage

If at all possible, try not to bind coverage with a carrier if your condition is of a particularly high risk or if multiple carriers all agree to coverage with proof of records. What this means is you can apply for coverage with the option of having insurance in force immediately, even through the underwriting process, but you are now bound to this carrier until they make a final decision. Sometimes, this can backfire if a carrier has changed their mind after they’ve received additional information about your case.

Do not hurt your case

If you are a high risk for life insurance, try to avoid anything which could amplify your risks. If you’re a skydiver for example, don’t take any unnecessary risks before or during your application process which could push you into the next higher risk class, like jumping without a support parachute or jumping from excessive heights. If you have a certain medical condition, smoking and drinking alcohol are usually harmful as well.