Impaired Risk Life Insurance

What Is Impaired Risk Life Insurance?

High risk life insurance is like any other type of life insurance coverage where a policyholder pays a premium in return for death benefit protection, and possibly a cash value or savings. The difference is in underwriting of the application.

Where one insurance company may use a one set of underwriting guidelines when reviewing an applicant for coverage, another insurer may use a different one altogether. A person who has a pre-existing condition may be declined by one insurer but accepted by another. The insurance business is very competitive, and different insurers carve out specific customer – or in this case, policyholder – niches.

While one insurance company may focus on extremely healthy people and can offer coverage at a very low price because they are a low risk, another insurer may opt to focus on higher risk applicants. Even though the second insurer is taking on more risk, because it can charge more in premium, it can still balance out overall. Some companies avoid smokers as much as they can, charging exorbitant premiums. Others take the extra time to evaluate each person to see what their lifestyle and habits will really do. We want you working with the company that views you and whatever has made you “high risk” in the best light possible.

While the premium charged for high risk life insurance is higher than for more Standard policies, this type of insurance is not completely unaffordable. Many insurers today are making this coverage to where it can fit into a variety of different budgets. It pays to shop around for not just this type of coverage – but the right type of higher risk life insurance coverage for your specific situation and budget.

Let’s have a look at your Challenging Case »