High-risk life insurance

You might wonder what it means to be 'high-risk' in terms of life insurance. You might also be wondering whether it's possible to buy a policy if you're seen as high-risk.

This guide explores what factors insurers consider during the application, and provides tips on how you could reduce your level of risk.

Can you get life insurance if you're seen as high-risk?

Yes, it can be possible to get life insurance if you're considered high-risk, but it depends on your personal circumstances.

Bring seen as 'high-risk' when getting life insurance means that insurers believe a claim is more likely to happen during the policy term.

This could be due to having a pre-existing medical condition, smoking, drinking in excess, or having a dangerous job or hobby.

Just because you're considered high-risk doesn't mean you can't buy a policy, but it might mean you pay more.

What is considered high-risk for life insurance?

Information that you give during the application process could mean that you're flagged as being high-risk. These factors include:

• Medical history - if you're living with a medical condition, or you've had one in the past, this can impact your application.
• Family medical history - some conditions can run in the family, meaning you have a higher chance of developing them.
• Smoking habits - smoking can impact your life expectancy, so smokers pay more for their cover than non-smokers.
• Drinking habits - the recommended alcohol intake is a maximum of 14 units per week. If you're regularly consuming more than this, you could be seen as high-risk.
• Drug use - if you're regularly using recreational drugs, insurers see you as too risky to offer cover to.
• Occupation - some jobs are seen as 'risky' by life insurers. For example, those that involve you working at great heights or with dangerous or heavy machinery. Jobs where you have to travel to dangerous areas or put you in life-threatening situations are also thought of as high-risk.
• Weight - having a high BMI could put you at a higher risk of developing certain health conditions (such as heart issues and diabetes). You're considered overweight if your BMI is between 25-29.9, and obese if your BMI is over 30.
• Hobbies - having dangerous hobbies means you're often in life-threatening situations. For this reason, insurers will see you as high-risk. Examples of high-risk hobbies include motorsports, scuba diving, surfing, water skiing, skydiving. parachuting, or mountaineering.
• Travel - whether it's for business or pleasure, frequent travel to countries that are on the 'no travel' list can increaes your risk. For example, places with civil unrest or disease outbreak.

It's important that all the information you give on your application is correct and that you don't give fake details in the hopes of getting cheaper life insurance premiums.

If you give false information or withhold certain details, it could invalidate your life insurance when the time comes to making a claim.

What high-risk life insurance policy options are there?

Depending on your personal circumstances, there could still be many options available to you.

Below are some of the most common types of life insurance and how being high-risk could affect them:

Term life insurance

Term life insurance covers you for an agreed amount of time and pays out if you die during this time.

You can choose between level term life insurance, where the payout amount remains the same, or decreasing term life insurance, where your payout amount decreases.

You'll need to give health and lifestyle information during the application process. So, you could find that your insurance price increases, or you have fewer options available if you're considered high-risk.

Whole of life insurance

Whole of life insurance covers you for life and guarantees a payout when you die (making it a form of life assurance).

During the application, you'll need to give details about your health and lifestyle.

You'd need to pay premiums for the rest of your life to keep the cover valid. So, it could become an expensive option if you're paying increased premiums due to being high-risk.

Over 50s life insurance

Over 50s life insurance (also known as an over 50s plan) is different to other forms of life insurance.

It guarantees acceptance to UK residents aged 50 - 85 without asking for any medical or lifestyle information.

Instead, all insurers ask for is your age and how much cover you'd like to buy. The price you pay is based on this information. Some insurers might ask you about your smoking habits, but this would be the only lifestyle information you'd need to give.

It's an ideal option for those in this age bracket who have struggled to buy life insurance in the past due to being too 'high-risk'.

Specialist life insurance

Specialist life insurance can come in handy in a couple of circumstances. For example, if you're under the age of 50 and have struggled to buy life insurance. Or, if you've found your options are too expensive.

Specialist insurers typically offer term life insurance. But their underwriting processes are more lenient for those considered to be 'non-standard' or high-risk applicants.

How much does high-risk life insurance cost?

The price you pay for high-risk life insurance depends on your personal circumstances. Insurers consider these factors when they're working out your insurance price:

• Age
• Smoking habits
• Medical history
• Family medical history
• Lifestyle choices
• Occupation
• Policy typ
• Length of cover
• Cover amount

It's likely you'll also be asked further questions based on your circumstances. For example, if you have a pre-existing medical condition, insurers will ask when you were diagnosed, what your symptoms are like, and what medication you're taking.

Will I need to take a medical exam if I'm high-risk?

You could be asked to take a medical exam when applying for life insurance.

It's not always necessary, but if you're asked for one it's so that insurers can get a better understanding of your health before deciding whether they can offer you a policy.

The insurer will pay for the exam and they'll arrange it for a location and time that's convenient for you.

Alternatively, they could ask to see your medical records or get a medical report from your GP. They can only do this with your permission.

Could I be declined for being high-risk?

Yes, it's possible to be declined for life insurance if providers consider you to be too high-risk.

But don't worry, just because you've been declined by 1 insurer or for 1 type of cover doesn't mean you'll be declined for everything.

For example, if you were declined for whole of life insurance, it might be possible to buy term life insurance or an over 50s plan (if you fall into the age bracket).

Similarly, if a mainstream insurer declines your application, you could get cover through a specialist insurer.

What happens if my circumstances change during the policy term?

Life is bound to change, so if you find yourself in new circumstances it could be worth contacting your insurer.

It could be worth comparing new quotes if you've made changes such as:

• Quitting smoking
• Stopping a dangerous hobby
• Starting a lower risk job
• Positive health changes

Your circumstances might mean that you can get cheaper life insurance.

Tips on how to reduce your risk level for life insurance

Many of the steps you can take to reduce your level of risk for life insurance could also help you to lead a happier and healthier life:

• Kick the habit - it's easier said than done, but quitting smoking could significantly reduce the price you pay for life insurnace. To benefit from non-smoker rates, you'll need to be free of nicotine (including all substitutes like vapes, gum and patches) for at least 12 months (although this could be longer with some insurers).
• Maintain a healthy weight - eating healthy meals and staying active can help you maintain a healthy BMI.
• Cut down on drinking - this doesn't mean you have to stop drinking completely. But try and keep to under 14 units per week (as recommended by the NHS).
• Stay on top of your health - if you're applying for life insurance with a medical condition, insurers like to see that you're managing your condition where possible. This could be regularly taking prescribed medication and following advice from your doctors.
• Don't delay buying a policy - the price you pay for life insurance increases as you get older. So, if buying a policy is on your mind, it's worth buying it sooner than later to benefit from your cheapest premiums.