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- High-risk life insurance is designed for individuals with pre-existing health conditions, hazardous jobs, or high-risk lifestyles who may face higher premiums or limited life insurance options
- High-risk applicants can choose traditional life insurance with higher premiums or opt for Simplified Issue or Guaranteed Issue plans that does not require any medical exams
- Some of the leading insurance providers like Canada Protection Plan, Manulife, Sun Life, iA, and Desjardins offer coverage for high-risk individuals
- There is a waiting period of two years for most high-risk life insurance plans and the beneficiary cannot make an insurance claim if the waiting period is not completed
- If a policyholder’s health improves or their risk factors decrease, they may qualify for a standard life insurance policy with lower premiums
- Who is considered high-risk by insurance companies?
- Who needs high-risk life insurance?
- How do insurers determine if I’m a high-risk applicant?
- Types of high-risk life insurance policies
- Best high-risk life insurance providers in Canada
- How do I get the best high-risk life insurance quotes in Canada?
- Frequently asked questions
Getting life insurance can be straightforward—unless you’re considered “high risk.” Whether due to a medical condition, a dangerous job, or an extreme hobby, insurers may see you as a liability, leading to higher premiums or outright denials. But does that mean you have no options? Absolutely not!
In this guide, we’ll break down everything you need to know about high-risk life insurance, including coverage options, costs, and the best insurance providers for high-risk life insurance in Canada.
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Who is considered high-risk by insurance companies?
High-risk life insurance is designed for individuals who may struggle to qualify for traditional life insurance due to health conditions, dangerous occupations, or risky lifestyles.
Insurers classify applicants as “high risk” when they have a higher chance of filing a claim earlier than average policyholders. This often results in higher premiums, stricter underwriting, or limited coverage options.
Insurance companies assess risk based on several factors:
- Health risks: Pre-existing conditions like diabetes, heart disease, cancer history, HIV/AIDS or high blood pressure
- Occupational risks: Jobs with higher physical danger, such as firefighters, pilots, miners, or construction workers
- Lifestyle risks: Engaging in extreme sports (skydiving, scuba diving), smoking, heavy alcohol consumption, or frequent travel to high-risk regions
Who needs high-risk life insurance?
High-risk life insurance is essential for individuals who face challenges securing traditional coverage due to pre-existing conditions, certain occupational, or lifestyle factors. If an insurer considers you more likely to file a claim earlier than the average policyholder, you may need specialized coverage to protect your loved ones financially.
1. People with pre-existing health conditions
- Diabetes, heart disease, high blood pressure, or a history of cancer
- HIV-positive patients whose symptoms may/ may not have progressed to AIDS
- Chronic illnesses like kidney disease, multiple sclerosis, or respiratory conditions
- High BMI or other health concerns that impact longevity
2. Individuals in high-risk professions
- Firefighters, police officers, and first responders
- Construction workers, miners, and offshore oil rig employees
- Pilots, commercial divers, and truck drivers
3. Extreme sports and adventure enthusiasts
- Skydivers, scuba divers, rock climbers, and base jumpers
- Race car drivers, motocross riders, and extreme skiers
- Frequent travelers to war zones or politically unstable regions
4. Smokers and individuals with risky lifestyles
- Smokers, tobacco users, vapers, and recreational drug users
- Heavy alcohol consumers with a history of substance abuse
- People with dangerous hobbies or high-speed driving records
How do insurers determine if I’m a high-risk applicant?
Insurance companies assess risk factors by analyzing various factors, including:
- Medical history
- Age
- Lifestyle choices (such as smoking or extreme sports)
- Occupation
- Family health history
Individuals with chronic health conditions, hazardous jobs, or high-risk hobbies may face higher premiums or require specialized policies. Some insurers may also request medical exams or detailed health questionnaires to determine the insurance risk level.
Types of high-risk life insurance policies
High-risk individuals have several life insurance options tailored to their specific needs. The right policy depends on factors such as health status, occupation, lifestyle risks, and budget. Here’s a breakdown of the most common types:
1. Traditional life insurance
This is a standard life insurance policy that provides comprehensive coverage but comes with higher premiums for high-risk individuals due to the increased likelihood of claims.
- Requires a medical exam and a detailed assessment of health and lifestyle
- Offers higher death benefits and flexible coverage options
- Premiums are based on the individual’s risk level, with higher rates for those with medical conditions or high-risk professions
- Suitable for individuals who can still qualify despite certain risk factors
2. Simplified Issue life insurance
Simplified issue life insurance is designed for individuals who may not qualify for traditional life insurance but still want some level of coverage. It provides a balance between accessibility and affordability.
- No medical exam is required, making the approval process quicker
- Applicants must answer a short health questionnaire to determine eligibility
- Higher premiums compared to standard policies due to the reduced underwriting process
- Ideal for those with moderate health risks or who want faster approval
3. Guaranteed Issue life insurance
Guaranteed-issue policies are available to anyone, regardless of health status, making them an option for individuals who are unable to qualify for any other type of life insurance.
- No medical exams or health questions, ensuring approval for all applicants
- Typically has lower coverage limits (often up to $50,000)
- Includes a waiting period (usually 2 years) before full benefits are paid out
- Best suited for individuals with serious health conditions or high-risk lifestyles who have been denied other forms of coverage
Best high-risk life insurance providers in Canada
Several Canadian insurance providers specialize in high-risk policies, including Canada Protection Plan, Manulife, Sun Life, Desjardins, and more. These providers offer tailored coverage to ensure you and your loved ones are protected.
- Canada Protection Plan (CPP): Specializes in no-medical and simplified issue life insurance, making it ideal for individuals with health concerns or those seeking quick coverage
- Manulife: Provides flexible underwriting and offers both term and permanent life insurance options for high-risk applicants
- Sun Life: Known for strong financial stability, Sun Life offers comprehensive policies that may accommodate individuals with higher risk factors
- iA: Offers a range of life insurance products, including options tailored for those with health risks or hazardous occupations
- Desjardins: Provides customized life insurance solutions, including coverage for individuals with unique risk profiles
How do I get the best high-risk life insurance quotes in Canada?
If you’re looking to find the best high-risk life insurance quotes in Canada, you might have to scan through a variety of options to find the best fit for your needs. This can get hectic and sometimes, you might even miss out on the best options! This is where PolicyAdvisor comes in.
With the help of our expert advisors, you can discuss your unique requirements and find the best coverage based on your current health status and risk profile. We will help you create a customized plan that can provide a financial safety net to your loved ones in your absence.
Our advisors can also help you with any coverage-related queries before you make the final decision. Schedule a call with us today to discuss your options and find the best plan!
Frequently asked questions
Can I switch from high-risk life insurance to a standard policy later?
Yes, many insurers allow policyholders to transition from a high-risk policy to a standard one if their risk factors improve. For example, if you quit smoking, manage a chronic illness effectively, or move to a safer occupation, you may qualify for lower premiums.
Are there waiting periods for high-risk life insurance policies?
Yes, certain policies, particularly guaranteed issue life insurance, come with a waiting period—typically one to two years—before the full death benefit is payable.
If the policyholder passes away within this period, beneficiaries may only receive a return of premiums paid or a reduced benefit. However, simplified issue life insurance may offer immediate coverage, unless there are additional clauses laid down by the insurance provider.
Can I get high-risk life insurance if I have been previously denied coverage?
Yes, being denied coverage in the past does not mean you cannot obtain life insurance. Many providers, such as Canada Protection Plan and Manulife, offer guaranteed issue or simplified issue policies that do not require a medical exam and have more lenient underwriting.
While premiums may be higher and coverage amounts lower, these policies ensure that individuals with pre-existing conditions or other risk factors can still secure life insurance.
Will my high-risk life insurance premiums ever decrease?
In most cases, premiums for high-risk life insurance remain fixed for the duration of the policy. However, if your risk profile improves significantly—such as through improved health, lifestyle changes, or career adjustments—you may qualify for a new policy with lower rates.
High-risk life insurance is ideal for individuals with risky job profiles and complicated medical histories. These people are usually not covered by traditional life insurance because they tend to pose a high risk for insurance providers. Typically, Simplified and Guaranteed Issue life insurance provides high-risk life insurance coverage without any medical examination. In Canada, several insurance providers like Canada Protection Plan, Manulife, Sun Life, Desjardins, and iA offer high-risk life insurance with a waiting period of two years before making an insurance claim.
