High risk life insurance is a policy that is awarded to people who are not exactly of good health. Regular life insurance providers usually decline to provide policies to these types of individuals, as with a person suffering with AIDS, someone who had just had heart bypass surgery, and others who are presently experiencing health problems. This also apply to people with particulary risky lifestyle habits, such as skydiving, base jumping, and other dangerous preoccupations.
In the past, cheap life cover totally banned high-risk individuals from getting insured. It’s very good news that an insurance opportunity, although not as comprehensive as the regular policy, is now being offered and family’s of individuals now have a means of obtaining financial security after the policy holder has gone.
How Does High Risk Life Insurance Work?
Same as the regular life insurance policy, high risk life programs offer the face value of the policy to the individuals assigned beneficiaries. The difference, however, lies on when the policyholder dies.
If he or she passes on within a predetermined period of time, the benefits his or her dependents receive could only be limited to the premiums the individual has paid so far. If he or she dies beyond the predetermined time, then it is likely that the benefits will be larger. However, these all depend on the type of agreement made with the insurer.
Providers of this type of policy are very well-educated and informed about the policy holder’s health condition, as well his or her’s chances of survival. Thus, the premium payments for it are a lot higher than the non-high risk programs to account for the risk involved. If you are a rather healthy individual with a slate of hazardous hobbies, you also a candidate for the high risk classification. In determining the policy that would suit you best, your provider will ask several questions about your occupation and your activities and draft a policy that is tailor-fitted to your case.
Finding Cheap Providers of High Risk Life Insurance
If your regular insurance provider does not offer policies for high-risk individuals, don’t despair. There are insurance companies that actually specialise in high risk cases and would gladly offer assistance. If you’re looking to find cheap life insurance online, you can simply start by comparing life insurance quotes from various agencies and inquire about the ones that most interest you.
Remember, in shopping for a cheap life cover, your goal is still to provide the most comfortable standard of living as possible for your dependents after you’re gone. Thus, although a coverage may be cheap, you must never shortchange you or your family, or you’ll be defeating the purpose of obtaining an insurance package.
Some would advise that you do not reveal all elements in your life that would be classified as a ‘risk’ and bring out only the most obvious ones; but that’s a judgment call on your part and, in some cases, could be charged as fraud. Thus, read the fine print before you go looking for policy loopholes you can take advantage of. Better yet, have a professional walk you through the entire process so you’re sure you’re not doing something illegal.