Managing risk is at the core of life insurance. When setting the typical life insurance premiums, insurance companies take important precautions, to ensure that their policyholders do not die prematurely. So, it is clear that this is the reason for the high premium in life insurance.
Serious health risks including diabetes and blood pressure cause many insurers to allocate the status. (standard or preferred titles should be utilized) relative to the sex, vitality and age of those applying According to the insurance policy, the policy holder should pay the usual insurance premiums for his particular form of life coverage.
The medical history of the family, the individual’s lifestyle, and other factors must be verified by the insurer in order to ascertain the status, health, and premium amount. It is probable that the person should be physically examined. Therefore, it is crucial for policyholders to be honest as they complete the health questionnaire.
Policyholders providing incorrect information will likely see payments for life insurance premiums halted, as well as a nullification of their entire policy. And you wouldn’t want that.
For instance, if the policyholder mentions, that he is a non-smoker, but ends up dying with lung cancer, there are high chances that the insurer may deny any health benefits to the beneficiaries of the policy.
But, specific risk factors cannot be manipulated by the person. You current age and gender are also included. Because women have a life expectancy higher than that of men, they pay less for their insurance premiums.
Conversely, since men have shorter life spans, they much higher premiums for their coverage. The age of a customer affects their insurance premium amount. Young people pay lower premiums for longer than older people, and especially men, do.
Each insurer has its own typical life premiums that it charges. In a case, where a person suffers from a risk factor, it is better, to alert the agent about the problem when it comes to buying the policy itself.
Risk factors are controllable and the policyholder can seek a doctor’s help for that purpose. Therefore, eliminating the factors of risk are essential. These include watching your weight and the amount of liquor you drink, as well as doing what it takes to stay healthy through diet and exercise. are all good ideas.
Insurance agents know that insurance companies, charge higher premium amounts to those people, who suffer from such risk factors. Hence, such agents may suggest some other insurance companies to an individual, which grants low premium policies in spite of these risk factors. In such an instance, the customer should ensure that the company is credible before making a decision.
Notify your insurance company if your health improves substantially because you may qualify for a lower premium. Insurance agencies then conduct another complete medical check up of the individual and lower the premium amount.