Life Insurance Guide for High-Risk Individuals (2023)

High-risk life insurance is a broad term insurance companies apply to any policyholder who is considered more of a risk to insure. Health issues and dangerous hobbies or careers are different types of risk in insurance that can affect your life insurance rates.

You can still find life insurance with a pre-existing condition, but you may have to shop for policies from high-risk insurance companies.

Use this guide to learn what high-risk life insurance companies look for, how high-risk life insurance rates are determined, and where to find affordable high-risk life insurance policies.

If you’re shopping for life insurance for high-risk individuals, use our free tool and start comparing insurance quotes from local companies to get the cheapest rates near you.

What is high-risk life insurance?

High-risk life insurance is coverage that’s available to individuals who are riskier to insure based on their career, hobbies, or health. Risk categories are applied to whole life, term life, and universal life insurance policies. 

Life insurance risk categories include:

• Substandard
• Standard: Smoker/Non-Smoker
• Preferred: Smoker/Non-Smoker
• Preferred Plus Non-Smoker

Substandard applicants are considered high-risk due to a history of smoking, a family history of illness, pre-existing conditions, and more. Insurance companies look at these and other lifestyle choices to determine your high-risk insurance premiums.

How do insurance companies define risk categories?

Risk and insurance are determined by occupations, hobbies, habits, and pre-existing health conditions. However, each life insurance company will have its own requirements, rates, and restrictions when it comes to writing high-risk policies. 

Typically, insurance providers will look at mortality rates and pull statistics from the CDC or the U.S. Department of Labor when determining life insurance costs for high-risk individuals.

For example, the fact that loggers are 23 times more likely to die on the job means they are likely to pay more for life insurance. 

If you are in a high-risk profession, take advantage of an employer group insurance plan if it’s available. Group insurance plans can help you save on life insurance coverage.

How do insurance companies determine high-risk life insurance rates?

When you apply for life insurance, your provider will determine your level of risk. You may be considered high-risk based on your career or lifestyle choices, and your provider will charge you accordingly.

For example, being a smoker makes you a higher risk to insure since smoking increases the likelihood of respiratory and cardiovascular diseases.

Statistics show that smokers die 10 years earlier than non-smokers and end up paying twice as much for high-risk life insurance. Learn more in the tables below.

Average Annual Term Life Insurance Rates for Smokers by Age
($100,000/10-Year Policy)

Smoker's Age	Average Annual Rates for a Male	Average Annual Rates for a Female
25	$321.76	$248.75
35	$360.23	$286.18
45	$637.51	$493.20
55	$1,364.09	$991.63
65	$3,245.05	$2,235.31

High-risk term life insurance rates for smokers can average around $26 per month for a 25-year-old male, as compared to the $11 per month some non-smokers pay in the table below.

Average $100,000 Term Life Insurance Policy Rates for a Non-Smoker by Age, Gender, and Term

Age (Non-Smoker)	Monthly Rates for a $100,000, 10-Year Policy for Men	Monthly Rates for a $100,000, 10-Year Policy for Women	Monthly Rates for a $100,000, 20-Year Policy for Men	Monthly Rates for a $100,000, 20-Year Policy for Women	Monthly Rates for a $100,000, 30-Year Policy for Men	Monthly Rates for a $100,000, 30-Year Policy for Women
25	$11.14	$10.78	$12.26	$10.79	$15.20	$12.90
30	$11.02	$10.89	$12.04	$10.96	$15.87	$13.41
35	$11.31	$11.34	$13.02	$11.69	$16.67	$14.32
40	$12.74	$12.43	$14.99	$13.42	$21.69	$18.10
45	$15.67	$15.26	$19.61	$17.09	$29.03	$23.15
50	$20.23	$19.01	$26.72	$22.08	$40.18	$32.24
55	$27.51	$24.16	$41.17	$31.31	$79.06	$55.42
60	$39.57	$32.50	$66.33	$50.76	Not Available	Not Available
65	$65.54	$48.87	$113.44	$80.73	Not Available	Not Available

These life insurance rates are just averages, and your rates can vary based on your age and gender. High-risk life insurance rates are impacted by your career and lifestyle choices as well, so it’s important to shop around online for insurance quotes before you buy in order to secure the best rates.

Case Studies: Life Insurance Guide for High-Risk Individuals

Case Study 1: Sarah’s High-Risk Term Life Insurance

Sarah is a 35-year-old individual with a history of heart disease. She wanted to secure a life insurance policy to ensure financial protection for her family. However, due to her pre-existing condition, she fell into the high-risk category for life insurance.

Sarah used an online comparison tool to gather quotes from various insurance companies that specialize in high-risk cases. After reviewing the options, she selected a term life insurance policy that provided the coverage she needed at a reasonable premium rate. Sarah was able to secure the policy and have peace of mind knowing her family would be financially protected.

Case Study 2: David’s High-Risk Whole Life Insurance

David, a 40-year-old individual, worked as a professional firefighter. Given the nature of his occupation, he was considered a high-risk individual by insurance companies. David wanted a life insurance policy that would provide lifelong coverage and also accumulate cash value over time.

He utilized the services of an insurance agent who specialized in high-risk cases. The agent helped David navigate the underwriting process and find a whole life insurance policy that suited his needs. Although the premiums were higher compared to standard policies, David understood the importance of having comprehensive coverage given the risks associated with his career.

Case Study 3: Lisa’s High-Risk Guaranteed Issue Life Insurance

Lisa, a 50-year-old individual, had a history of cancer and was unable to find affordable life insurance due to her pre-existing condition. She decided to explore guaranteed issue life insurance, which is specifically designed for high-risk individuals who may be declined coverage elsewhere.

Lisa applied for a guaranteed issue life insurance policy and was approved without the need for a medical exam or extensive underwriting. While the coverage amount was limited, Lisa felt relieved knowing that she had some form of life insurance protection in place.

How do I buy life insurance for high-risk individuals?

Since you’re likely to pay more for life insurance as a high-risk individual, shopping around online for high-risk life insurance quotes is the easiest way to find affordable coverage.

Once you find a provider with quotes that fit your budget, you can contact them to discuss your coverage options and ask about any life insurance discounts you may qualify for. 

Companies offering high-risk life insurance include:

• Prudentia
• AIG
• Transamerica
• MetLife
• Banner Life
• Principal Life
• Lincoln National

If you need to find companies near you offering life insurance for high-risk individuals, enter your ZIP code below to find affordable high-risk life insurance quotes from local companies.