Shopping for life insurance is fairly simple, even if the client is considered a high-risk applicant. During the application process, you might have to provide additional information about any occupation, hobby, high risk activities or health conditions.
Anything that might increase your chances of dying while your policy is in effect may be considered a risk for insurance purposes. Insurers evaluate your overall health and lifestyle when you apply for life insurance coverage, but certain pre-existing conditions, habits, hobbies, and occupations can increase your overall risk in the insurance company’s eyes.
One of the primary reasons high-risk individuals should seek life insurance coverage is to provide financial security for their loved ones. If the unexpected were to happen, having a life policy in place ensures that dependents are protected and can maintain their standard of living.
Imagine a high-risk individual who is the sole breadwinner of their family. They have dependents who rely on their income to meet their daily needs, such as housing, education, and healthcare. In the unfortunate event of the individual’s death, the sudden loss of income can create a devastating financial burden on the family. However, with a life insurance policy in place, the family can receive a lump sum payout, providing them with the necessary financial support to continue their lives without major disruptions.
In addition, life insurance can help cover outstanding debts, such as mortgages, loans, and credit card bills, which the high-risk individual may have left behind. By having a life insurance policy, these financial obligations can be taken care of, thus preventing the responsibility from falling on the shoulders of grieving loved ones.
It’s important to be honest when completing a life application, as failure to omit may mean a decline from the carriers. Give me a call with your next high-risk case and be rest assured that we will work diligently to give you a fair quote that reflects the client’s circumstances. If you have questions, we have answers.