Term Life Insurance for High Risk Policyholders
Term life insurance should be an important part of your financial plan, and in many cases it can be expensive to maintain. However, there are a few lifestyle issues that may possibly cause your premiums to be higher, and possible other things that will allow you to lower your policy amounts. If you know what your term life insurance company is looking for when determining whether or not to write you a policy, you may be able to lower the costs that you are required to pay in order to maintain your term life insurance policies.
High-risk term life insurance is designed to cover a wide variety of different activities ranging from sports to a variety of different types of lifestyles choices and even diseases. You need to know where you will stand with your term life insurance before you make a purchase, so read the fine print before you sign on the dotted line.
High Risk Term Life Insurance
Term life insurance premiums can add up over time, but if you regularly participate in sports that are risky and adrenaline pumping, or if you make lifestyle choices that can be perceived to be unhealthy, then your cost for term life insurance will be even costlier in the long run. This may seem unfair but it’s simply the way that insurance companies limit their risk to some degree. If you are a risky individual for these term life insurance companies to insure, then they need to make the premium to make up any potential loss that they will accrue when you die before the end of the term.
Term life insurance underwriters tend to base their insurance rates on the activities or jobs that individuals are involved in, as well as statistical data relating to people who lead unhealthy lifestyles. Even if you are not really high risk but have a pre existing condition like diabetes, you may be perceived as a higher risk individual to insurance with term life insurance. If your profession is dangerous, for example, you work daily around toxic waste or are a NASCAR driver, you may also be considered a high-risk applicant when applying for term life insurance.
Cutting Premium Costs with Term Life Insurance
You can do some dramatic cost cutting when it comes to your high-risk term life insurance. If you are only participating in a risky sport as a hobby, you may be able to save money. You still need to report this, because premiums will not be paid if you die doing something you are dishonest about, but if you are honest about how often you do it, you may be able to save money on your premium. If you take classes to help you become more proficient and experienced/licensed in your risky hobby or sport, you may be able to save dramatically as well.
You can do a few things to keep your premiums lower by reducing unhealthy habits like unhealthy eating, drinking and smoking. These unhealthy choices normally drive up the cost of your term life insurance because of the damage that they do to your body naturally. Before you sign up with a term life insurance company, you should quit smoking, reduce your drinking and start eating healthfully and exercising regularly. This will have a large impact on your term life insurance rates and may have you paying significantly less than if you applied while making those unhealthy choices in your life.