High-Risk Life Insurance: Is It for Me?
What is high-risk life insurance?
High-risk life insurance is any policy that covers a high-risk person who has a higher-than-average risk of passing away prematurely and triggering an early payout.
- Includes lifestyle risks, professional risks, or medical risks
- Higher risk = higher premiums
“High risk” describes the policyholder, not a specific type of insurance.
- High-risk person: You may be rated “high risk” based on your application process and what you reveal about lifestyle, health, or occupational risks.
- High-risk policy: A standard policy has been adjusted via underwriting for the high risk.
Many Canadians who are considered high risk can still qualify for life insurance. The provider may charge higher premiums, add exclusions, or cap the term or coverage amount.
The best life insurance in Canada for most people is term life insurance since it’s flexible, affordable, and straightforward. Term policies offer reliable coverage for the years your loved ones would need financial protection the most.
If you pass away while your high-risk policy term is active, your loved ones will receive a tax-free lump sum known as a death benefit.
What makes someone “high risk” for life insurance?
Someone is “high risk” when their lifestyle, medical history, or occupation means they could pass away sooner than average and the company would have to pay out a death benefit early.
Lifestyle risks include:
- Thrill-seeking activities like skydiving or motorcycle racing
- Unhealthy habits like smoking, excessive drinking, or drug abuse
Medical condition risks include:
Occupational risks include:
- Mining
- Construction
- Diving
Risk typically affects pricing rather than eligibility, though it depends on the specific applicant. Note that the above are just some examples of things that are considered “high risk”, and it will slightly vary from provider to provider.
How much high-risk life insurance costs in Canada
The higher the risk of premature passing, the higher the life insurance premiums will be—like 25% to 200% higher, depending on the increased risk factors.
When applying for life insurance as a “high-risk” individual, a provider might assess your eligibility for approval as part of your life insurance application based on these factors:
- How old you were when you were diagnosed
- Whether you’ve developed complications
- How well you’re currently managing your condition
Then, insurers will calculate your premiums using well-established industry ratings with corresponding percentage increases to your monthly life insurance cost. The ratings range from A to J or 1 to 10, with A and 1 being the lowest ratings. The higher (riskier) a condition is rated, the pricier your premium will be.
Here’s an example of a rating range:
“You might be at higher risk, but still very much insurable. You are high risk now, but you could end up paying more for a high-risk life insurance policy in the future as you age or your condition progresses.” —Erik Heidebrecht, Life Insurance Advisor
Who is considered “high risk” for life insurance?
Jobs, medical conditions, and risky hobbies can make someone “high risk” when it comes to life insurance. Here’s a non-exclusive list for each category.
What occupations are considered high risk?
- Underground miners
- Farmers and ranchers
- Commercial fishermen
- Construction workers
- Roofing specialists
- Steelworkers
The definition of a high-risk job can change from one insurance provider to the next, so shop around and get multiple quotes to ensure you’re not overpaying for coverage.
What health issues are considered high risk?
- Crohn's disease
- Heart disease
- Organ transplants
- History of cancer
- Kidney disease
- High cholesterol
- Smoking cigarettes or cigars
- Chewing tobacco or use of other tobacco products
- BMI
Occasional smokers may qualify for standard premiums. Learn more about life insurance for smokers.
What hobbies are considered high risk?
- Skydiving
- Scuba diving
- Bungee jumping
- Rock climbing
- Racing (boat, car, bike, skiing)
- Parachuting
- Hang gliding
Remember: A hobby is something you do repeatedly. If you’re just trying something one or twice, you generally won’t be considered high risk for life insurance.
“Being ‘high risk’ is just an underwriter classification. It doesn’t take away the probability of you getting coverage and protecting your family.” —Erik Heiderbrecht, Life Insurance Advisor
How to find the best affordable high risk life insurance
Finding affordable life insurance when you’re considered “high risk” can feel daunting—but it’s not impossible. Here’s how you can find the coverage you need without breaking your budget.
Step 1. Shop around: insurers differ in how they treat a particular health condition in their underwriting process. Aim to get three different life insurance quotes to find the option with the coverage you need at a price you can pay.
Step 2. Manage your health condition and re-apply: look for an insurer that will allow you to be reassessed within a year or two of buying your policy. If you manage your condition effectively and become healthier as a result, you could unlock lower premium payments in the future.
Step 3. Get no-medical coverage as a last resort: no-medical life insurance coverage doesn’t require an extensive medical exam—but this means that the provider will assume you’re high risk and will charge equally high premiums. If you’re like most Canadians, term life insurance coverage is the type of life insurance that is most beneficial—and most affordable. Try getting standard term life insurance coverage first and use no-medical life insurance as a backup.
The best high-risk life insurance in Canada
The top three best high-risk life insurance companies in Canada are Beneva, UV Insurance, and Canada Protection Plan. Each of these providers offer no-medical life insurance, which is made for people with medical conditions who may be considered high risk and subject to higher life insurance premiums.
Here’s how they stack up:
How to lower your life insurance costs if you’re high risk
You can lower your life insurance rate by managing your risks, choosing certain policies, and applying at the right time.
- Manage your conditions: Medication adherence, stable test results, and specialist follow-ups can lead to better ratings at renewal or on reapplication.
- Reapply or reassess: You may unlock a lower quote if you apply after your health is improved, like if you quit smoking, lose weight, or control your A1C or blood pressure.
- Adjust term length or coverage: Shorter terms and lower coverage can significantly reduce premiums while still giving you coverage during the most important years.
- Don’t default to no-medical too early: No-medical policies cost a lot more, even though they’re easier to qualify for. Start with fully underwritten options first.
High risk often means higher premiums. But there are ways for high-risk Canadians to reduce their costs over time, with the right structure and timing.
FAQ: High risk life insurance
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.