Life insurance is a risk-rated product, and your premiums will vary depending on several factors. This also means that Australians deemed ‘high-risk’ may pay more for the same product that others might get cheaper – or even be declined altogether.
So, what exactly is a high-risk individual and is there anything you can do to lower your life insurance premiums? Let’s explore life insurance for high-risk applicants.
Like other insurance products, insurers typically consider you a higher risk if you’re more likely to claim on your policy or likely to submit a higher claim.
When it comes to life insurance, aspects of your health and lifestyle that could lead to a serious injury, illness or an early death may contribute to insurers deeming you a high-risk individual. This information determines how much of a risk you are to insure, and your insurer sets your premiums accordingly.
Generally, the higher the risk, the more you’ll pay for life insurance.
When determining your premiums, life insurance providers may consider the following:
It is important to be honest and disclose all health, occupation, lifestyle and prior insurance history to the insurer when applying for life insurance.
The last thing you want to happen is for your claim to be declined at the worst possible time.
Your job plays a significant role when life insurance providers calculate your premiums and decide whether you’re a suitable candidate for cover. ‘Dangerous jobs’ or professions considered more dangerous than average can result in insurers deeming you a high-risk individual.
The following occupations may be considered high-risk:
A police officer is one such profession often deemed ‘high risk’ by insurers.
People who work in professions like these may have to apply for high-risk life insurance policies. For other occupations, life insurers may deny you coverage altogether. Insurers may deem the following workers uninsurable:
Note: Occupations in these categories may vary from provider to provider. What’s more, both these lists are not exhaustive, and other occupations may be included under the ‘high-risk’ and ‘non-insurable’ categories.
It’s not just a high-risk job or having an extensive family history of medical problems that can place you in a high-risk category. What you like to do in your spare time can also lead to you paying higher rates on your premiums.
Here are some of the most common activities that life insurance companies generally deem to be high-risk:
These are known as life insurance exclusions. While it’s still possible to get approved for a policy if you do them, it will depend on the lender, and you might have to pay above the standard rate thanks to loading fees.
The following pre-existing conditions may result in higher premiums too, as your insurer may deem you to be a health risk:
Read more about pre-existing conditions for life insurance to see if your medical history could impact what you pay for life insurance.
Some things in life are out of your control, and health issues aren’t always easily avoidable. In some cases, if you’re considered too much of a risk, your insurer may decline your life insurance application outright.
However, there are things within your control that can reduce your level of risk and improve your life insurance coverage. For example:
If you’re working in a high-risk occupation and can’t find affordable life insurance to provide for your loved ones, don’t be disheartened – you might need to shop around a little!
Comparing a range of life insurance plans from various different providers can help you get a sense of what products are available, and what your premiums might be. Even if you’re a ‘risky’ customer, comparing your options could still help you find a better deal.
We’re ready to help you compare life insurance quotes from our panel of Life Insurers. Try it for yourself with our free life insurance comparison service and see if you’re able to get a better rate on your life insurance cover.
