There is a definite time when many of us begin to think about obtaining life insurance to protect family members and loved ones. It could be after the birth of a baby or an attractive insurance advertisement that changes your interest. When the time is right, the first thing most people do is get a quick quote online to understand their filing fees. A more detailed evaluation follows. Some of the elements of this evaluation are intuitive (age, health status, smoking, profession, etc.). However, there are some surprising evaluation criteria that guarantors also take into account. I like it…
Driving history: Yes, your driving history is important, not only for car insurance premiums, but also for life insurance rates. If you have had a DUI accident in the recent past, you are likely to experience significantly higher rates than those quoted by anyone with a clean driving record. Remember that misdemeanors are lost from your driving record after three years (for insurance purposes).
Be happy: Having a history of depression can take over your life insurance premiums and nearly double them. Happy people have fewer health problems and stress, and therefore pose fewer risks to insurance companies.
Policy Date: The document start date can sometimes be changed (also called a rollback date), which means that in some cases you can take advantage of lower premiums (depending on your youngest age – if you turned 50 this week but delays your policy) for a month Example above). Obviously, you will have to pay all the fees from now on, but you can take advantage of a lower fee in the future.
Risky jobs (such as entrepreneurs, members of bomb squads) can pose higher risks to your life and therefore lead to higher insurance premiums. Do you think your job is dangerous?
Payment frequency: Paying a life insurance policy annually saves insurance companies administration costs and rewards you with lower premiums than if you paid your insurance monthly. In this case, however, you will need to plan carefully because the high annual fees can create a big hole in your family’s budget if you forget the annuity.
Travel (to dangerous destinations) – Some destinations are more dangerous than others and some are even more dangerous (war zones, areas with a known history of kidnapping, etc.) Consult an insurance broker or your agent to understand how they could affect your future plans. your insurance coverage. Your policy could be denied or you could get a life insurance policy, but it will expressly exclude time spent abroad. In some cases, the simplified problem is that not having a health insurance policy is the solution because it doesn’t ask questions about travel. However, it is important to know that the simplified problem policy is more expensive than the standard policy and its coverage is generally limited to $ 50,000 – $ 300,000. You can prove this by getting a simplified anonymous case without a medical life insurance quote through one of the many online insurance platforms.
Sports (extreme): participation in extreme and / or risky sports, especially at the professional level, can affect life insurance premiums (ex: skydiving, cliffs, diving) similar to having insurance while traveling to dangerous places , you need to understand what situations your life insurance policy does not cover.
Private Pilot Licenses – This generally falls into the category of dangerous hobbies – licensed pilots (private only) can face higher insurance rates. When calculating premiums, the insurance company will take into account the age and experience of the pilot. This information will likely not be requested during the initial citation process, but will be required during the subsequent detailed evaluation.
Your nationality: If you are not a Canadian citizen or resident, you will not be able to apply for a Canadian life insurance policy.
Your income: Insurers can reject your life insurance policy if your family’s income falls below a certain threshold, usually $ 30,000. The reason behind this is that insurance does not expand your budget beyond your capabilities. Keep in mind that you still need to speak with a broker to create a detailed future plan for insurance protection, and brokers who are also financial planners can help you organize your next financial expenses to better manage your needs. It is a good idea to check with your insurance broker, if your income may be a problem, before submitting your application. Remember that once you reject a life insurance application, this can affect your next applications, as some insurance companies include in their surveys: “Has a life insurance application been rejected before?” As with the pilot license, this question may not be included in the initial pricing questions, but will be asked later by the insurance company.
As you can see, many things outside of your health affect life insurance rates and policy. You should remember that underwriting (application evaluation) rules differ between insurance companies, therefore it is advisable to work with an insurance broker who deals with multiple life insurance companies and who can share their experience with you while navigate this complex process.