YOU ASK:

Is there life insurance available for high-risk occupations and hobbies?

WE ANSWER:

Generally, you may have to pay higher premiums, or your application may be rejected altogether.

However, some life insurance companies offer what is called high-risk life insurance to cater to the needs of:

Those who have occupations that are considered hazardous (such as those who are scuba diving instructors, pilots, firefighters, miners, etc.). These are workers who belong to fields where injury or death has a very high probability. These are usually refused insurance.
Those who indulge in dangerous sports or hobbies (such as motorized racing, rock climbing, scuba diving and so forth).
Those who have chronic or serious illnesses such as asthma, heart disease, HIV, AIDS and diabetes. This also includes people who have recovered from cancer, a heart bypass surgery and the like.

Although this is naturally more expensive than standard life insurance, it is helpful for those who otherwise would have been rejected for coverage. That means that those who have been considered uninsurable before can apply for this kind of policy. The premiums will be based on how high a risk you present based on your overall health condition or your occupation.

Usually, high risk life insurance would require that you take a medical exam. This will help the insurance company determine your risk level. Another disadvantage is that the coverage levels tend to be low.

There is also usually a longer waiting period - which may mean 5 years as opposed to the 2 years that standard policies have. This means that when the insured dies within the waiting period, the beneficiaries may not get the full death benefit. This is particularly true when the insured dies because of a high risk condition - such as a serious sickness or due to his occupation.

In most states, there is also what is called a high risk insurance pool. The administration of the pool would depend on the state laws and regulations. All life insurance companies are required to take on life insurance applicant that would normally be rejected. The health insurance risk pool was created to help middle-income groups to get the coverage they need. Thus, the state regulations also put a cap on the premiums. Some states have also set guaranteed issue guidelines. In cases like this, the state may subsidize the premiums in order to ensure low rates.

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