When it comes to life insurance many people don’t know that the lowest rate on the quote engine isn’t the lowest rate for them if they’re a high risk. But if you’re reading this then you have probably been made aware of this (or you’re a life insurance agent). Either way let’s discuss exactly what high risk life insurance is, why companies consider you high risk, and which companies are best fit for the high risk client.
What is High Risk Life Insurance?
High risk life insurance refers to the getting of life insurance coverage if you are viewed as a “high risk” to the life insurance companies. What is the risk? Well the higher chance of you dying sooner than later, then the higher the risk you pose to the life insurance company. This directly influences your rates and ability to qualify. For example, if you have had a heart attack or two in the past, your risk of death is much higher than someone who’s never had one. Because of this you will either get rated up for coverage or declined all together. Well declined by some companies, the companies that will approve you are the ones we consider “High Risk Life Insurance Companies.”
Other things outside of your health can influence your risk status as well. Things like smoking are part of being a high risk client and that is why smokers can often pay double the cost for life insurance. Outside of that, your job or hobby can play a huge roll on the rate that you qualify for.
The most important thing to keep in mind is that all high risk life insurance companies are different. One company may be ideal for certain health risks while another may be perfect for sky divers. Company A might have the lowest rate on the quote engine but company B may offer the best rate for a diabetic. The only way to know for sure during specific cases is to talk to a high risk life insurance specialist. Otherwise let’s dive into detail about just some of the high risk life insurance companies and the risks that they cover.
The Life Insurance Companies That Insure High Risk
Below I will list some of the life insurance companies that have helped us insure clients with certain risks due to their more lenient underwriting guides for certain clients under certain situations. This list is no particular order of good to better. Just a quick breakdown of companies and the “high risk” that they’re willing to insure. Keep in mind this is for traditional life insurance and we’re leaving the guaranteed issue companies out of here because they’re only good as the last resort once all the high risk companies have turned you down.
Prudential
One of our favorite companies because they have been really good to many of our clients. One of the things Prudential is exceptional with is smokeless tobacco and e cigarettes. They can often provide non-smoker rates for those that chew or vape. Which creates a dramatic difference in cost. They have also shown to have good approval percentage with our clients that have had coronary artery disease, Hep C, and have been a go to carrier for type 2 diabetics and foreign nationals.
TransAmerica
Most of the risks out there TransAmerica is willing to insure. One of the best high risk companies out there in terms of getting approved for coverage. Of course there is a big likelihood of getting rated up depending on your case. But getting rated up is much better than getting declined. In the past we’ve had great success with PTSD cases and liver disease. Also good rates for breast cancer survivors and those with bipolar disorder.
MetLife
MetLife is one of the most popular life insurance companies and for good reason. It isn’t just their marketing that makes them good. They’re one of the most financially secure life insurance companies out there and are known for their good customer service and competitive rates. As far as high risk is concerned they’re really goof for type 1 diabetics.
AIG
Another very popular life insurance company and makes the list for high risk. They offer the most lenient guidelines for ex-felons. We have seen the most success insuring ex-felons who are off probation, or those with misdemeanors, with AIG. They have also been a go to for clients with brain lesions. Some of our clients got turned down everywhere and then accepted with AIG. They are also great with anxiety and auto immune disorders. Last but not least, they can offer preferred rates for gestational diabetes in some cases.
Banner Life
One of the best companies on the market with consistently competitive rates is Banner Life. They are really good for those with diabetes and don’t rate you up if you have a family history of cancer. They also they use lifestyle credits which can benefit your rate if you live a lifestyle positive to your conditions. Also, they can possibly offer nonsmoker rates for cigar smokers.
Protective
A huge life insurance company that has been around for a very long time and has great ratings all around but isn’t always well known. Protective isn’t particularly high risk but does really well with stroke cases. We have been able to get consistent approvals with them and stroke patients.
Principal Life
Principal Life is a company that is overall good for high risk cases. Principal has provided a high success rate with cancer survivors, diabetics, type 1 and type 2, and the best company for epilepsy. They don’t excel in one specific type of condition or risk but we have found success with them at times when inquiring about our high risk clients.
Lincoln National
This is one of the very popular companies because they can offer preferred rates with past history of thyroid cancer. They also can offer nonsmoker rates for tobacco chew.
This is only a quick summary of just SOME of the companies and SOME of the risks that they insure. There are hundreds of different risks and hundreds of companies that can possibly insure them. So its always a best bet to work with a high risk life insurance agent or agency who can do all the leg work. We do this at no extra cost to you. Here’s what our process looks like for high risk clients.
How We Get the Best Rate
We work hard for our clients to make sure we not only get them coverage but get them coverage at the best rate. There are certain steps you have to take when dealing with high risk cases and its usually a 3 steps process that’s outside the norm. This includes and extensive pre-qualification, quick quote, and cover letter.
Pre-Qualification – this is a standard for ALL cases. But with high risk cases we do it a bit more extensively. We will ask you for all the possible details about your risk. If you have a medical condition we will ask for the date of diagnoses, treatment, medications, doses, positive lifestyle habits and anything else that can help us paint a picture of what your case looks like to the life insurance companies. This will also help us when we do the quick quote and cover letter to see if we can get you a better rate, the more details the better your chances.
Quick Quote – This is where we send all of the potential companies an anonymous letter with all of your risks and details about your condition that we gathered in the pre-qualification. It will detail your situation but not include any of your personal information so they won’t know it’s you. Based on this info, they will return to us with an offer for coverage. We look at the company with the best offer and apply with them. We then attach this offer to the application and say “hey look, this is what you said you’ll give us.” If all the details check out as accurate there is super high chance you get that offer.
Cover Letter – this is something we draft and include with the application as well to bring you to life to the underwriters. Most of the underwriting is a black and white process but a cover letter helps bring some color to it. We outline things the application can’t show: positive improvements in your conditions and lifestyle habits that support longevity. This can help sway your premiums and entire rate class or two in the better direction.
This isn’t a process you should try to navigate on your own. In the end you will end up getting turned down or getting ridiculous offers anyway so why not start here. Keep in mind companies change their underwriting guidelines all the time so let us do the work for you.
Start Here
The good news is you’ve reached the right destination. We’re an independent life insurance agency that represents all the life insurance companies out there and we specialize in high risk cases. As you may have learned in this article the quote engine isn’t necessary if you’re a high risk. So if you have any questions or want to know more about your condition and life insurance, give us a call at 888-492-1967 or hit the chat button below. We love to chat! Welcome to InsureChance!
