How to receive the best rates possible when you have risky medical conditions
There are many forms of risky medical conditions such as heart disease, Cancer, Parkinson’s Disease, Dementia and literally hundreds more. High risk life insurance can naturally be triggered by health conditions even your occupation, favorite sport or hobby. Many of these you would never be aware of, until you begin applying for a life insurance policy. It is very important to know what to do before you actually apply.
High risk life insurance can cost more but not always. This will depend on the applicant and their specific situation such as their health and lifestyle. This blog post is designed to teach you how to be successful purchasing your life insurance and paying the lowest premiums possible once you are approved.
What exactly is High Risk Life Insurance?
Most of the time, health conditions come into the picture with long-term risk factors which could possibly cause an insured’s death. This is by far the most common factor to trigger a high risk exposure.
Sometimes medical conditions that start out as simple and very treatable can escalate and advance to a life threatening conditions. The medical underwriters cannot predict an individual’s future , but they have to take this into serious consideration.
Even your lifestyle which seems perfectly normal may contain some high risk ingredients. These could be hazardous occupations that could one day become the cause of your death.
Last but not least, your lifestyle as far as hobbies and sports can put up a red flag and cause complications for your application for life insurance. You may have a dangerous sport activity you really enjoy which could be classified as a possible threat to your life.
You could be classified as high risk if anything in your life increases your statistics of dying before your projected life expectancy. Typically risky medical conditions are number one on the list.
High Risk Medical Conditions:
- Life insurance with Depression
- Life Insurance for Type 1 Diabetics
- Life insurance with High Cholesterol
- Life insurance for Cancer Survivors
- Life Insurance for Alcoholics
- Life insurance with High Blood Pressure
- Life insurance for Overweight & Obese People
- Life insurance with Anxiety Disorder
This is just a sample of medical conditions that can possibly cause your application to be more challenging or cause you rates to increase. Working with an independent agent such as ourselves can make all the difference in the world. We specialize in helping people purchase life insurance with risky medical conditions and finding the lowest rates.
Let’s not forget a sub-category we can refer to as Unhealthy Habits. These three can also increase your rates and put you into a high risk situation also. Keep in mind that smoking cigarettes can increase your rates by 300%!
How can you make sure your getting the lowest rates once you apply?
This responsibility lies with your independent agent (broker). As with us, we use over 40 top rated companies and we shop the market hard to make sure we have our applicants apply with the most promising insurers. When the application process is completed, we carefully review the final rates. If we believe there is a possibility to get a lower premium for our client, we submit the application to several other companies.
Once all projected rates come in, we simply choose the carrier that offers the lowest rates and then present them to our client for their consideration. When the smoke clears, our client will be guaranteed to receive the lowest premium possible. The complete process is very simple and requires little to no work for the applicant.
How risky medical conditions can increase your rates:
Classifications & Ratings
Your rates may be affected in a number of different ways such as the health classification you will be placed in after you apply. The classification you receive can vary from one carrier to another depending on their underwriting guidelines.
Here is a basic breakdown of the classifications:
- Preferred Plus
- Standard Plus
If you use tobacco:
- Preferred Tobacco
- Standard Tobacco
These rate classes can also be subjected to table ratings which can increase your premiums by a percentage added to the base rates. They can be used with the letters A-J or numbers 1-10. Some companies use the number system and other companies use the alphabet version. Example: “Standard” (rate table C) or “Standard” (rate table 3). The higher the number or as the letters proceed, the higher the rates.
Here is a breakdown of the table ratings and their increase by percentage:
- Table rating A/1 = 25%
- Table rating B/2 = 50%
- Table rating C/3 = 75%
- Table rating D/4 = 100%
- Table rating E/5 = 125%
- Table rating F/6 = 150%
- Table rating G/7 = 175%
- Table rating H/8 = 200%
- Table rating I/9 = 225%
- Table rating J/10 = 250%
This normally will look complicated, but it is actually quite simple after you review it.
Here is an example to help you better understand:
If you applied for a life insurance policy and the “Standard” rate class had a premium of $1,000.00 per year and your final rates came back as a “Standard” rate class with a table rating of “D” or in other words, table rating “4”. You would have a rate increase of $100% which would now give you a final premium of $2,000.00 per year.
It is possible to have a combination of a table rating increase and a flat extra at the same time. A common example of this would be an individual with medical issues (and) a dangerous job or sport.
If you believe you have any risky medical conditions, contact us and we can help you. This is our business and we have been successfully doing this for over 30 years. Buying life insurance may look complicated and intimidating, but it is quick and easy when using the right agent to help you every inch of the way. Read some of our blog posts and don’t forget to use our instant quoting system to see what your options are.
All the best,
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