What is impaired life insurance?

If you've ever heard the term impaired life, or impaired risk, in relation to life insurance, you might wonder what it means?

More importantly, if you're classified as impaired, you'll want to know what impact this has on you securing affordable life insurance.

Impaired risk refers to an applicant who doesn't meet the insurer's standard criteria to obtain the most affordable rate. 

Impaired, signifies that you're considered a higher risk and therefore more difficult to insure.

However, being labelled impaired doesn't necessarily mean you can't secure affordable life insurance.

At Reassured, we have a specialist impaired team who can help secure life insurance where you may otherwise have had difficulty.

Read on to find out exactly how being classed as impaired risk can affect your life insurance…

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Impaired risk life insurance

If you’re regarded as impaired, the insurer has decided that because of certain key factors, often health-related, you’re more likely to make a claim.

As a result of being deemed a higher risk, your premiums will be more expensive compared with a standard applicant.

Therefore, it's more essential than ever to compare quotes to secure the best deal.

Once cover has been secured, whilst you may be paying slightly more, the terms of the cover won't differ from a standard applicant.

Contact our dedicated team today to arrange cover from just 20p-a-day.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.
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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.
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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.
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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.
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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
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Your total cover estimate

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Let us find your best quote.

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Impaired life insurance providers

In recent years, the life insurance market has become more accommodating to impaired applicants.

As a result, not only do many specialist insurers exist, but many mainstream insurers are accepting higher risk applicants.

At Reassured, we work with the major insurers, as well as impaired specialists The Exeter, to help secure you the best quote.

Our award-winning team are trained to understand individual circumstances and put you in touch with the insurers most likely to accept your application.

We have a specialist team dedicated to finding cover for applicants who may have struggled previously.

45% of customers who have been declined elsewhere have found cover through Reassured.

Contact us today to discover your policy options and receive your free quotes.

Does this mean you can't secure life insurance?

No. Although a small percentage of applications are declined outright, in the majority of cases being impaired doesn’t mean you’re uninsurable.

As discussed, the modern life insurance market is much more accommodating than it used to be, and provisions for all sorts of circumstances.

Some insurers now specialise in providing impaired life policies and being labelled as impaired doesn’t mean you won’t be able to secure standard cover.

It may mean, however, that you need to shop around and compare quotes in order to find the most competitive deals.

We can do exactly that on your behalf, at no cost to you.

How does impaired life affect your policy?

The main impact, being an impaired risk will have on your policy is the amount you pay for your monthly premium.

Another potential impact is an insurer may ask more health and lifestyle questions. Others may request access to your medical records.

In certain cases, you may be asked to go for a medical exam, in order to satisfy the insurer of your current health.

The terms of your cover will not be affected and you will be insured for all the same causes of death as a standard applicant.

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Who is classed as an impaired risk for life insurance?

There are many reasons why an insurer's underwriters may class you as an impaired risk.

We have broken this down into 4 areas: medical conditions; dangerous occupations; sports professionals and dangerous hobbies.


1) Medical condition

You may be considered as impaired if you have a pre-existing medical condition, which could impact your life expectancy and/or your ability to work.

Those with a family history of hereditary health problems, drug and/or alcohol addiction, heavy smokers or the clinically obese may also fit into this category.

Monthly premiums could increase by 25%, 50%, 75%, 100% or even 150%+, depending on how serious a risk the condition is considered.

Common impaired conditions include:

2) Dangerous occupations

People who work in a job where there's an increased risk of death and/or serious injury, are likely to be classed as impaired too.

This includes those in the armed forces, people who work at height, as well as those that handle heavy machinery.

Common impaired occupations include:

  • Stuntman
  • Prison officer
  • Security guard
  • Airline pilot
  • HGV driver

Even if you're job is not considered high-risk, but you're self-employed, you could be particularly vulnerable.

This is because you don't enjoy the protection provided by an employer; death in service, company pension, health care, sick pay etc.

3) Sports professionals

Some sporting professionals may also find they're a higher risk in the eyes of the insurance underwriters.

Sports deemed dangerous and where there is statistically a greater chance of serious injury or death include:

  • Equestrian sports
  • Motorsport
  • Rugby
  • Watersports
  • Boxing
  • Cycling

4) Dangerous hobbies / Extreme sports

Even if you don't play a sport professionally, your lifestyle can impact your life insurance.

If you regularly enjoy extreme sports, such as snowboarding, it's likely to increase the cost of your premiums.

Commons impaired hobbies include:

  • Skydiving
  • Parachuting
  • Scuba diving
  • Snowboarding
  • Rock climbing
  • Gliding
  • Motorsports
  • Bungee jumping
  • Hunting
  • Skiing

Exeter life insurance

The Exeter offer life cover specifically designed for people with chronic or serious health conditions, who may find it difficult to secure standard cover.

Their unique underwriting process provides impaired applicants with a greater chance of securing affordable life insurance. Even if they’ve been declined elsewhere.

The Exeter have two types of protection:

Manage Life

  • Designed for people with obesity who have a BMI of up to 48 and/or type 2 diabetes
  • Can reduce the cost of your premiums by losing weight and achieving goals set by the insurer
  • Pays out a cash lump sum after the policyholder passes away, or is diagnosed with a terminal illness

Real Life

  • Designed for people who’ve experienced a serious medical condition, such as diabetes (type 1 and 2), stroke, HIV and heart attack
  • Pays out a cash lump sum after the policyholder passes away, or is diagnosed with a terminal illness

You’re unable to apply directly for Exeter life insurance, so get in touch with our team at Reassured today for your individual quote.

Reassured's specialist impaired risk team

Not all impaired applicants are handled in the same manner.

Different insurers will employ different underwriting criteria, meaning premiums can vary in cost.

At Reassured, we offer our customers a dedicated impaired team who specialise in finding suitable cover for all non-standard applicants.

We're able to utilise our knowledge and experience to help secure a policy for those who have previously been declined elsewhere.

Use a broker to compare quotes and secure the right policy

This is the ideal scenario in which to use our free, no-obligation broker service at Reassured.

Allow us to search the market on your behalf, finding you the best possible policy quotes, to compare.

Remember, many comparison websites don't show you the whole wide range of insurers available.

What's more, our service is regulated by the Financial Conduct Authority (FCA).

Read our in-depth article on 9 reasons to use a life insurance broker »

Impaired life insurance cover in summary:

  • You may be impaired as a result of a medical condition, dangerous occupation or hobby
  • Impaired risk applicants will pay more for their premiums
  • This doesn't mean all impaired applicants are uninsurable
  • Impaired life quotes can vary, as insurers employ different underwriting criteria
  • Some insurers put exclusions in your policy, meaning you can't claim in certain scenarios
  • There are insurers that specialise in providing impaired life insurance
  • Undergoing a medical could reassure your insurer and reduce your premium
  • Cover expires if you don't maintain your monthly premium payments
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Why use Reassured to find the best impaired life quotes?

  • We've a dedicated impaired team, who work tirelessly to secure you cover
  • We've a great track record of securing cover for those who have previously been declined
  • We've years of experience working with major insurers and smaller specialists
  • We understand the different underwriting processes and criteria insurers employ
  • We'll search the market on your behalf, identifying the most competitive quotes
  • 21,500+ people cannot be wrong! We have an 'Excellent' average Trustpilot rating of 9.6/10
  • We're independent, impartial and never charge you a fee
  • We're a non-advised broker - we listen to your unique circumstances and find the most suitable policies

Very easy to understand and very quick

Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!

Mrs M Rushworth

Very professional and reassuring

Very professional and reassuring. Life insurance sorted in about 10 minutes.

Stephen Davies

very courteous and friendly

very courteous and friendly. Polite professional and empathic.

Stedroy Fenton

Another happy customer

Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.

Piotr Stepien

Really attentive during the call

Really attentive during the call, good clear guidance throughout. Well done.

Michael Reynolds

Amazing service

Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.

Sera Woolley

I made the right choice and now I feel…

I made the right choice and now I feel relieved that I did.

glyn

Really genuine kind and compassionate…

Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!

Katelia Merritt

I must say Jake took me through every…

I must say Jake took me through every step and was brilliant, recommend them anytime.

Allan Green

Very happy and everything explained…

Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.

Jenny Berry