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Non Standard Life

Updated on October 4, 2023

The concept of non-standard life is part of an insurance contract. The meaning of this term and related details are given here.

Meaning of Non-standard Life

Non-Standard Life, in the context of insurance, refers to individuals or policyholders who do not fit the typical criteria or risk profile that insurance companies consider when underwriting standard policies. These individuals are often considered higher risk due to various factors, such as their health, lifestyle, or occupation. As a result, they may face challenges in obtaining traditional life insurance coverage and may need to explore alternative options.

What are the factors that lead to classification as non-standard life?

Health Conditions – Individuals with pre-existing medical conditions, especially those considered severe or terminal, may be categorized as non-standard life due to the higher likelihood of claims.

Riskier Occupations – People working in high-risk or hazardous occupations, such as deep-sea divers, miners, or stunt performers, may face non-standard status as their occupations increase the likelihood of accidents or injuries.

Dangerous Hobbies – Engaging in extreme or dangerous hobbies like skydiving, rock climbing, or racing can also result in non-standard life classification, as these activities carry inherent risks.

Smoking or Substance Abuse – Tobacco smokers or individuals with a history of substance abuse may be considered non-standard due to the increased health risks associated with these habits.

What are the key aspects of a Non-standard Life Insurance?

Higher Risk Profile – Non-standard life policyholders are perceived as having a higher risk of filing a claim due to factors like pre-existing medical conditions, risky occupations, or hazardous hobbies. This increased risk can make it more challenging to secure insurance coverage.

Limited Coverage Options – Traditional or standard life insurance policies often have strict underwriting guidelines, which can result in denial of coverage for non-standard applicants. As a result, these individuals may need to explore specialized insurance solutions.

Specialized Policies – Non-standard life insurance typically involves specialized policies designed to cater to the unique needs and risks of such policyholders. These policies may come with higher premiums or modified coverage terms.