Financial security is closely related to mental peach. Life insurance policy is an important part of perfect planning. It is essential for the financial shelter of your loved ones if they are dependent on you financially. However, availing life insurance often becomes critical because of a risky profession, age, major health problems, and even sometimes for bad habits.
Every insurer uses their own risk calculating methods to determine how much they are going to charge from a client. These risk factors are critical when choosing a policy. There are certain categories of risks for a policy. If you are involved in something that could be risky for your life, you will be considered as a high-risk client.
6 Common Categories and High-Risk Policy Risky Professions
Are you in any risky profession like firefighters, miners, welders, truck drivers, pilot or anything that is risky? If you are doing a risky job, you may become a risky candidate for the insurance company. These jobs have a certain risk of life and the insurer may charge you a high premium.
There are few diseases which are not curable. Major life-threatening diseases are cancer, HIV/AIDS, heart problems, diabetics etc. If you are suffering from any of these diseases, you will be considered as a risky client and the insurer may ask for a big premium.
Some people do really too late to get a policy and gets included in risky candidates list. It’s important to get a policy in your early life otherwise the cost may increase a low. There is no age limit for life insurance but most of the insurers don’t offer a policy after 90. However, life insurance over 80 is also considered as a risky plan but you can get a policy with slight extra cost.
Hobbies are always not something for joy. Some people really love adventures and this may make them a risky candidate. If you go for skydiving, car racing, scuba diving, hill tracks off-roading etc. you will find that the insurer is asking a high premium. It’s very common as these hobbies could be deadly in some cases.
Are you a regular smoker or love to drink? You will be in trouble finding a life insurance. Consumption of alcohol or tobacco is harmful to health and can cause several diseases. Insurance companies are quite strict on this issue. You may even need to pass nicotine or alcohol test to become eligible for a policy.
First of all, make sure that you are a risky candidate. There are few issues which are sometimes snubbed even if they are risky.
- Skin cancer
- Piloting in Major Airlines
- Depression & Hypertension
- Occasional Smoking
- Thyroid diseases
So, you need to consult with your insurer to find if they mark you as risky or not.
Now, let’s see how you can get the affordable policy. The best solution is getting out of the risky zone.
It’s not possible to quit your job, right? But, you can make the insurer believe that you are doing everything for your safety. For example, if you are a firefighter then describe the insurer that which safety equipment you are using. If the insurer finds that you are taking sufficient protection, they will obviously offer you a discount and give you a good policy.
Now, if you have a bad disease you can tell the insurer details about your treatment and prescriptions. This may not work all the time, but you have a high chance of getting an affordable plan by doing this. Seniors face many problems in getting a policy because of their age and health issues. However, you can do a bit compromise with the coverage amount and it will reduce your cost.
For some people, hobbies are everything. Hence, they can’t quit it. But, they can take safety measures. Let me give you an example. If you love hill track off-roading, you must take some safety instruments. For off-roading, you must carry a first-aid kit, snake bite kit, cold pack, important medicines, vehicle winch, blanket etc. Make a short list of safety items you carry and show it to the insurer.
Quitting bad habits is a must. It’s not only for getting a policy but also for your health and future. It is not easy to stop smoking or drinking but you have to do it and there is no alternative. However, you will find some insurers are giving you a plan but the cost will be higher for sure.
For people concerned with the recent “PPI claims Deadline” for individuals whom have been miss sold payment protection insurance, there is a useful ppi calculator here to help people find out if they have a viable claim and what their claim could be worth
Getting out of risky candidate list is not easy in most of the cases. However, if you try, the insurer will compromise as well. Now, decide, plan and go wisely.