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Every insurance company is slightly different. Who they cover and how they calculate risk will vary. However, there are certain factors that are likely to put you in a higher risk category.
If you lead an adventurous life or do a dangerous job - getting your average Life Insurer to cover you is a little more complicated. Your premiums may be higher, or you may even get rejected from some insurers. This is simply because the risk of them needing to payout is higher than they are comfortable with, or too high.
For example it’s clear that there are higher risks if someone works at heights or offshore than there would be being an office worker. In these instances you’re at higher risk of injury and also work-related stress and depression too.
Career aside some of us enjoy riskier hobbies and pursuits. Maybe you’re a sucker for a skydive or your besotted with bungee jumping. The approach to these hobbies will vary from insurer to insurer. Mostly it will increase the monthly premium cost, and some insurers may even reject your application entirely.
High risk life insurance works much the same as regular life insurance, except it is likely to cover high risk cases - such as dangerous jobs, wild hobbies, or other higher risk factors such as pre-existing medical conditions, older age or medical history. How this works will depend specifically on the person and cover they would like.
There can even be different risk levels within the same types of job. For example, statistically speaking construction is one of the riskiest jobs because due to it’s high mortality rate. But within the construction industry there will be different roles with differing levels of danger & risk. Someone working in an office will be at lower risk than someone who is on a building site everyday.
Some industries, such as the military or air travel, may even require working with a specialist insurer who can help to work out the best cover and policies based on additional information provided.
It’s key to note that high-risk life insurance isn’t a specific product that can be purchased. It’s just a life insurance policy offered by a insurance provider is catered to people with higher risk jobs.
The process of getting life insurance is the same, after someone decides how much cover they would like they will need to apply for a policy. The amount of cover someone may want might be enough to pay off a mortgage, or enough to pay general living expenses for loved ones.
In both high-risk and regular life insurance someone needs to decide between whole life and term life insurance. Term life insurance, unlike whole, only covers you for a decided number of years - there can only be a claim if the holder of the insurance dies within this time frame.
The main difference between applying for life insurance when you have a high risk job is that someone will likely have to provide more information during this application process. This could be details about the dangerous occupation, the frequency of an adventurous hobby or even a medical examination.
