More than 22 million Canadians have some sort of life insurance policy. Yet, despite its popularity, many of us don't realize how many factors—some within our control—affect the premium we pay. There's way more to it than just your age, overall health and whether or not you smoke. In fact, we've identified at least 11 factors (with the help of a reader of as this was originally a top 10 list) that when combined go into determining the premium you’ll pay. 1. Your age All things being equal, the younger you are the lower your rate will be which is why insurance experts often recommend buying a policy when you're young. However, you're never too old to buy life...
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The insurance sector and systemic risk Insurance companies – life insurers, as well as providers of property, casualty, health, and financial coverage – perform important economic functions and are big players in financial markets. Traditionally, however, they were not considered to pose systemic risks. Insurers have longer-term liabilities than banks, a greater diversification of assets, and less extensive interconnections with the rest of the financial system. However, the near-collapse of AIG during the Global Crisis prompted a rethinking of the sector’s systemic riskiness. A number of insurance firms were subsequently among the financial institutions designated as globally systemically...
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What are high risk activities? Affordable life insurance for high risk activities like sky diving, auto racing, scuba diving, rock climbing, private pilots, etc. is possible. Obviously, individuals participating in these high risk activities warrant a closer look when being evaluated for life insurance. This article will talk about what life insurance underwriters are looking for when evaluating these particular high risk activities. It will also discuss the extra rating that may be charged based on the details of each activity. Who underwrites life insurance for high risk activities? It is important to remember that each life insurance company has their own particular underwriting...
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Extra insurance for adventure sports a good idea Speeding high over the Costa Rican jungle on a zip line sounded like a thrilling way for Jerry Shirley of Denver to see the lush tropical terrain around the coastal town of Jaco. All went well until he realized during his fifth ride that the leather gloves he was given to grip the cable were a sorry excuse for a braking system. Unable to slow his rapid descent, Shirley slammed into an attendant and a tree at the bottom of the cable, shattering his left leg and ankle. It took three operations, 15 pins and screws and two plates to put Shirley’s leg together again. The decision to ride the zip line aside, Shirley made at least one smart travel...
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Here's how your job affects your life insurance rates © gregepperson / iStock life insurance Life insurance rates are determined by a variety of factors that represent your risk to the insurer, including your age, health status, driving record, your hobbies or avocations (like climbing or diving), and your lifestyle habits (like smoking or drug use). Popular Searches But your occupation can also be a factor if your job involves risky activities or is in a controversial industry, like marijuana. Which jobs can affect life insurance rates? Each life insurance company has its own underwriting guidelines, including its own occupational ratings. Jobs with a high degree of risk will almost...
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Insurers class occupations into various levels of risk ratings. If you work in a dangerous occupation, you could be categorised as high risk. This means as a policy holder you'll either: Pay an additional premium to get cover Be excluded from cover all together Be assessed further determine your occupations risk rating (if it's not already classified) What sort of occupations and duties are classified as high risk? Unsure whether your occupation might be classified as a high-risk job by your life insurer? Occupations that are commonly placed in the high-risk category include those that involve: Working at heights, for example, as a window cleaner Working underground, for example, as a...
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Revealed – The jobs that will send your life insurance premiums sky high (and how to avoid a hike) When you complete a life insurance application, the insurance company is interested in more than just your health and how much cover you are applying for. A life insurance company will want to know about your family history, any dangerous sports or hobbies you take part in and also the job that you do. High risk / hazardous life insurance occupations explained Insurance companies employ underwriters, whose job is to look at the applications they receive in detail assessing additional risk factors, such as health, family history, dangerous sports and hazardous occupations. If you do one...
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When you are hanging off the side of a mountain or whipping a dirt bike high over the track, you know you’re defying death. While proper preparation and the right equipment can make either mountain climbing or Motocross relatively safe, both activities carry inherent dangers, and those dangers are something insurers take into account when pricing a life insurance policy. Extreme Sport as a Risk Factor A number of hobbies are considered “high-risk” from an insurance perspective. Some of those, like skydiving and car racing, are uncommon pastimes. Others, like riding motorcycles, are relatively mainstream but do still carry a higher risk for insurers. While motorcycles make up a small...
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You are in luck! Fortunately, today, a number of life insurance companies provide life insurance coverage to high risk people as well. However, this coverage is typically more expensive when compared to a life insurance policy for someone without a health condition. A High Risk Condition is an increased financial risk to the Insurance Companies. This equates to higher premium dollars for you to offset that risk. That seems obvious right? What isn’t obvious are the life insurance companies that assess these risks. There can be a huge difference in premium prices from company to company. You may find it difficult in finding these affordable life insurance companies on your own. That...
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High Risk Are you applying for life insurance but are afraid of declines and expensive premiums because you may be considered a “high risk” candidate? If this applies to you, the process of looking for life insurance is likely going to be frustrating. An applicant is defined as high risk if his or her lifestyle choices, jobs, hobbies or health are determined to lower his or her life expectancy. Confused? Let’s cover the basics: You already know an underwriter assesses an applicant’s risk compared to the risk of an average person. These risks are grouped into four risk classes: Declined: if the client is deemed too great a risk to the insurance company Preferred: candidates in this...
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