High risk insurance is like its name sounds – it offers insurance coverage for those who fall into high-risk categories. Life insurance for high risk people may include people who engage in dangerous recreational activities, such as skydiving or flying planes for fun. Life insurance for high risk people could also describe policies for people who may have health issues that could prevent them from getting traditional life insurance. This high risk insurance category may include conditions like having cancer, diabetes, or heart disease.
Other people may fall into high risk life insurance categories, such as the elderly, the obese, or those in dangerous professions, such as firefighting. Smokers and those who frequently use drugs or alcohol may also be classified as needing high risk insurance. So there are a variety of people from all walks of life who might need life insurance for high risk people.
The rates for high risk life insurance will generally be more expensive than standard insurance, due to the increased likelihood of death of the insured. But the rates for high risk life insurance are typically not the same for each person, or for each subcategory of high risk insurance. The cost of life insurance for high risk people may depend on the individual situation of the applicant.
The bottom line is this: life insurance for high risk people may be more expensive than traditional life insurance, but it may offer protection, and some peace of mind, for those who purchase a policy to help the financial future of beneficiaries. So in those cases, life insurance for high risk people may be worth the additional cost.