10 Unusual Things That Can Affect Your Quoted Life Insurance Rates

There is a definite time when many of us start to consider getting life insurance to protect family members and loved ones. It could be after the birth of a child or a catchy insurance commercial that changes your interest. When this time comes, the first thing most people do is get a quick quote online to understand their approximate rates. A more detailed evaluation is presented below. Some elements of this evaluation are intuitive (age, state of health, smoking, occupation, etc.). There are, however, some other surprising evaluation criteria that subscribers consider as well. As…

  1. driving history: Yes, your driving record is important, not only for your car insurance premiums, but also for your life insurance rates. If you were in a DUI accident in the recent past, you will likely experience significantly higher quoted rates than someone who has a clean driving record. Remember that minor violations are removed from your driving record after three years (for insurance purposes).
  2. be happy: Having a history of depression can hijack your life insurance premiums, nearly doubling them. Happy people experience fewer health problems and stress and therefore pose less risk to insurance companies.
  3. policy date: The policy start date can sometimes be adjusted (also called a retroactive date), which means that in some cases you may benefit from lower premiums (based on your younger age; if you turned 50 this week but your policy is rolls back to last month, for example) . Obviously, you will have to pay all the premiums as of the retroactive time point, but you may benefit from a lower rate in the future.
  4. Dangerous works (eg specialists, bomb squad members) can pose a higher risk to your life and therefore lead to higher insurance premiums. Do you think your job is dangerous?
  5. payment frequency: Paying for a life insurance policy annually saves insurers administrative costs and rewards you with lower premiums than if you had paid for your insurance monthly. In this case, however, you’ll need to plan carefully because a hefty annual fee can create a significant hole in your household budget if you miss the annual premium.
  6. Travel (to dangerous destinations): Some destinations are more dangerous than others and some are very dangerous (war zones, areas with a known history of kidnapping, etc.) Consult an insurance broker or your agent to understand how your future plans may affect your insurance coverage. Your policy may be declined or you may get a life insurance policy, but it would explicitly exclude time abroad. In some cases, a simplified issuance of a non-medical life insurance policy is a solution, since it does not ask questions about travel. However, it is important to know that a simplified issue policy is more expensive than a standard one and its coverage is generally limited to $50,000 – $300,000. You can prove this by getting a simplified anonymous issue no health life insurance quote through one of the many online insurance platforms.
  7. Extreme sports): Being involved in extreme and/or dangerous sports, especially professionally, can affect your life insurance premiums (for example: skydiving, cliff jumping, scuba diving). Just like getting insurance while traveling to dangerous places, you need to understand what is not covered by your life insurance policy.
  8. private pilot licenses: This one generally falls into a category of dangerous hobbies: licensed pilots (private only) may experience higher insurance rates. When calculating insurance premiums, an insurer will consider both the age and experience of the pilot. This information may not be requested during the initial quoting process, but will be required during the subsequent detailed evaluation.
  9. your citizenship: If you are not a Canadian citizen or resident, you will not be able to apply for a Canadian life insurance policy.
  10. your income: Insurance companies can deny your life insurance policy if your household income falls below a particular threshold, usually $30,000. The reasoning behind this is that the insurance does not stretch your budget beyond its 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 assess your upcoming financial expenses to better manage your needs. It’s a good idea to check with your insurance broker, if your income may be an issue, before submitting your application. Remember that once you have been denied a life insurance application, it may affect your future applications, as some insurers include in their surveys, “have you ever been denied a life insurance application?” Similar to a pilot’s license, this question may not be included in the initial quote questions, but will be asked by your insurer later.

As you can see, many things outside of your health affect your life insurance quote and policy. You should remember that the underwriting (application evaluation) rules are different between insurers and therefore it is advisable to work with an insurance broker who deals with numerous life insurance companies and can share their experience with you as you browse. through this complex process.

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