So you’ve been looking for Life Insurance and you’ve stumbled across these phrases “impaired risk” “impaired life” – so what do they mean and how might it affect you when taking out life insurance?

Am I an impaired risk in life insurance terms?

You could be considered as an impaired risk for the following reasons:

  • You currently have a medical condition: This could be various issues but the common medical problems include – heart problems, cancer, diabetes
  • Your work is dangerous: A role which has a greater chance of death is often considered an an impaired risk. Jobs include: military, working at height and those who handle dangerous machinery.

What is impaired life?

The term impaired life basically refers to any life insurance applicant who, for one reason or another, does not meet the criteria for the ‘preferred plus’ rates, the most inexpensive. This means that you are a riskier candidate to insure.

Nevertheless, it is still possible to attain life insurance. It’s possible that you have come across an insurance company who are only willing to accept you with at a very high costs or that you have been completely denied insurance.

Don’t be put off! There are people out there that can help and there is a competitive life insurance policy that suits you.

Life Insurance is dealt with in various ways, each company is different. Many may request access to your medical history or perhaps require you to undertake a medical assessment for the insurer to weigh up the risk.

If your general health is good yet you have been considered as an impaired risk – it’s worth going for a medical assessment. This will help improve your premium as it demonstrates you are generally quite healthy. 

Am I an impaired risk in life insurance terms?

You could be considered as an impaired risk for the following reasons:

  • Your work is dangerous: A role which has a greater chance of death is often considered an an impaired risk. Jobs include: military, working at height and those who handle dangerous machinery.
  • You currently have a medical condition: This could be various issues but the common medical problems include – heart problems, cancer & diabetes. Occasionally, a history of family issues such as obesity or hereditary disorders might cause you to be placed into the Impaired Risk group.
  • You work in Sport: Depending which sport specifically, some people are at higher risk than others. Motorsports, Watersports and Equine Sports are liable to higher insurance costs.
  • Your lifestyle is extreme: If you go Snowboarding, Deep-sea Diving or Paragliding among others – you are likely to be quoted a higher premium.

Will impaired life affect me?

In years gone by, those who were deemed to be a high risk applicant would have been declined entirely. Nowadays, with so many of us with different and sometimes difficult situations – the market has caught up. There are some insurance companies who are more flexible and who also tend to understand these types of applicants that they in fact now specialise in impaired life policies. The cost of your premium is now the main factor to change should you be considered to have an impaired lift.

Expectedly, the increased premium is to cover the extra level of risk that the applicant has.