High-risk insurance
is a type of coverage available to individuals who may not qualify for standard insurance policies due to pre-existing medical conditions or because of their lifestyle, profession or history of injury. Homeowners who live in flood zones may also be required to take out a different form of high-risk insurance, either in addition to or in lieu of a standard policy. High-risk insurance premiums are generally more expensive, but they may be the only available option to those in high-risk categories.
Significance
According to the National Coalition on Health Care, nearly 47 million Americans do not have health insurance. Many of these individuals are uninsured because they cannot qualify for standard insurance policies. Many more will be given high-risk status in the future due to advanced disease caused by delayed treatment, a direct result of being uninsured. High-risk drivers need coverage to get to and from work. Every day, home and business owners risk their belongings and property to fire and flood because they are in a floodplain or other high-risk area. However, the expense of losing a home or business is significantly higher than the cost of paying for high-risk coverage.
High-risk insurance coverage is essential, especially during times of economic instability. Insurance providers are becoming increasingly aware of this need and are providing high-risk individuals with the protection they need to tend to their daily obligations and avoid financial crisis.
Types
High-risk insurance is available as an alternative to nearly every type of traditional policy. High-risk medical coverage is available for those who cannot qualify for standard coverage as a result of a cancer diagnosis or pre-existing conditions, such as diabetes, alcoholism or hypertension. Individuals with pre-existing medical conditions, smokers and those with certain genetic disorders who do not normally qualify for life insurance may be eligible for high-risk life insurance policies. Homeowners who reside in flood zones or fire zones have the option of taking out high-risk home and contents coverage, and drivers with a history of DUI or multiple accidents can opt to pay high-risk premiums in order to continue driving. Some individuals considered high risk due to their profession or lifestyle--such as professional athletes, actors, scuba divers and pilots--may be required to take out high-risk employment coverage to continue working.
Misconceptions
Unfortunately, many people who fall under high-risk insurance categories erroneously believe they will not qualify for any level of insurance coverage. Two groups of high-risk individuals--homeowners who live in a floodplain and those with serious pre-existing medical conditions--are most often affected by this common misconception. The truth is that high-risk insurance is available, but it may be expensive. Some medical insurance providers specialize in insuring individuals with pre-existing medical conditions, including cancer, and homeowners, renters, and business owners are eligible for flood insurance regardless of their mortgage status or location, provided the home or business is located in a National Flood Insurance Program community.
Benefits
The increasing availability of high-risk insurance means individuals no longer have to seek government assistance for medical care or leave their homes and belongings vulnerable to fire and water damage. High-risk insurance makes it possible for nearly everyone to obtain coverage. Moreover, now that this type of insurance is well established in the industry, insurers are forced to price high-risk policies competitively. This means lower premiums and better coverage for high-risk individuals who are willing to shop around before taking out a policy.
Considerations
High-risk insurance can be expensive, but most high-risk individuals can reduce their risk status, regardless of current health or circumstances. Those with medical conditions such as hypertension and diabetes can work with their doctors to improve their overall health and reduce their high-risk status. Drivers who are currently ineligible for standard coverage may be able to qualify after completing driver safety classes, remaining free of accidents and citations for a specific period of time, or by driving a less expensive or safer vehicle. Homeowners can reduce their risk status by installing alarms and other safety devices. High-risk status should be reassessed periodically to determine if high-risk insurance is still necessary.
Tags: High-risk insurance, medical conditions, pre-existing medical, high-risk individuals, high-risk insurance, home business
