What options are available to you for life insurance if you have health issues or participate in hazardous sports/activities. If you have difficulties qualifying based on health, there is a secondary market of high risk insurance plans that might be a back-up option. Let’s take a look at how they work.
So what are high risk insurance policies? The are essentially simplified issue plans that offer a limited benefit with other restrictions. They tend to be whole life in design. The whole life design makes sense with such a risky proposition to the insurance carriers for the same reason we generally don’t recommend it for standard issue policies. Whole life policies are front loaded much like a mortgage is to a bank with an increased premium going to the carrier. The insurance company can quickly collect enough with investment on the premium to offset the increased likelihood of having to pay out a claim. This is usually not a good value when compared to term life insurance as we discuss in our term versus whole life article but we may not have any choice if health dictates a high risk direction.
Advanced praise for 10 Steps to Success- '.outstanding, insightful and very timely for the newer agent. It also serves as a reminder to the veteran agent as well. Your ideas are easily understood and should be accepted by those who read the book. This should help many!"
-David Carter, sales director, Midland East American Family Insurance Group
-David Carter, sales director, Midland East American Family Insurance Group
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