Life Insurance Risk Factors
It is inevitable that the more risk factors that you allow to be a part of your life, the more you are going to have to pay for life insurance. These can include medical conditions like heart disease or diabetes or whether you smoke or not. Alcohol ranks high on the scale of risk factors for a life insurance company. People that are overweight or in poor health are also considered a high risk when they apply for a policy. Life insurance is attainable, but only at a higher premium.
Your health is important to a life insurance company. For this reason, you might be subjected to a medical exam and a preliminary questionnaire is always required. It is best to be honest with the questionnaire. You do not want to hide a medical condition, die of that particular one, and then lose any death benefits. Insurance companies look at a potential policyholder who smokes or drinks as if they participate in those activities on a daily basis. This may not be you. Some people smoke cigars on special occasions and drink alcohol once a year. Either way, your premium could be higher than that of a non-smoker or drinker.
People who are overweight or in poor health are a high risk because of their high mortality rate. Not all persons overweight are unhealthy, however. Again, a medical exam would be required. This way all potential health problems would be laid out on the table. Poor health could start a policyholder out on a bad foot because their health would continually deteriorate, as they grew older. The premiums for each of these cases would be high, but could possibly decrease if weight was lost or if their health improved over a documented period of time. Some insurance providers specialize in certain medical conditions, such as diabetes. They have an underwriting policy that focuses on a person’s overall health, while still aware of the diabetes.
Other risk factors that a life insurance company would look at are if a person participates in extreme sports or activities. These would include sky diving, scuba diving, bungee diving, mountain climbing, parachuting, and deep sea diving. Persons that like these activities are daredevils that do not just try them once a year. These sorts of things are almost like a daily dose of adrenaline. It is not just thrill seekers either. Those with professions that are considered extreme have to pay higher life insurance premiums too. Professional surfers or racecar drivers, pilots, and instructors of aviation, mountain climbing, and scuba diving are all subject to higher rates.
Those with extreme sports lifestyles should shop around for insurance or perhaps cut back on the adrenaline driven activities. The same is to be said about those who are in poor health. The better care that you take care of yourself will benefit you when it comes time to purchase a life insurance policy. Just be honest about your lifestyle, change it if need be, and do not be surprised if you have to pay higher rates for your preferred lifestyle.