“I am not able to buy life insurance for myself. Do you know anything about this? Can you help?” Ravi asked his friend Ajay.
“Not able to buy? You are just 35, and can easily buy life insurance; like I bought for myself and I’m 3 years older to you!” Ajay replied.
“I talked to an insurance agent, but he told me that I can’t get a life insurance as I am in the ‘High Risk’ category!” Ravi said.
“High risk? Is it because you have diabetes?” Ajay asked.
“Yes, this is what he told me, I don’t know what to do?”
Well, in case you are in a situation like Ravi, and an insurance company has rejected your application for life insurance terming you as “high-risk”, don’t lose heart.
Not only diabetes, even if you've had a bypass operation, or any other life threatening disease, it’s very normal that insurance companies may turn you down from buying life insurance.
Obviously then getting a life insurance policy can be a tedious process for you. But it’s important to know that different life insurance companies look at you differently. Simply because one insurance company has rejected your application doesn’t mean you can’t secure life insurance somewhere else.
Many people who apply for life insurance and get declined just give up. Remember the real reason you need to buy life insurance – it’s for your family’s security. So don’t give up!
You need “high risk life insurance”
High risk life insurance is a product offered by many insurance companies to people who are, well, high risk for the insurance company due to certain situations.
This risk may be due to diseases like diabetes, heart ailment or heavy smoking etc. Also, a tendency to take on dangerous activities or working in a dangerous environment (eg: skydiving, racing cars, working in a chemical factory, etc.) can categorise you as high risk.
Owing to the above it may also make that policy more expensive than normal life insurance policies.
So how do you increase your chances to get life insurance? Simply apply to many companies.
There are insurance companies that will accept your application. But keep an open mind when it comes to coverage. The terms offered won’t be at the best rates that the company has for those outside the high risk life insurance group. But then, life insurance is important for you to have, especially because your high risk body ailment or high risk job can create financial problems for your family in case something happens to you.
Disclaimer: This article is for general reference reading, please take an expert’s advice in case of doubt.