For most people, purchasing life insurance is a responsibility, and when the need comes up, they invest in the plan and get the chore out of the way. For other people, however, getting covered by life insurance is a luxury they don’t have. Many people are surprised to find out that there are people who are uninsurable, and it’s a frustrating feeling to those going through the experience. Luckily, there are many things you can do to help guarantee your insurability.
Most young people never entertain the idea of purchasing life insurance, and it’s normal for most folks to put that idea off until they have dependents in the home. However, getting life insurance while you’re young is the best way to guarantee your insurability. Not only are the premiums cheaper when you’re young and healthy, but buying young helps to guarantee your coverage in case your health was to deteriorate later in the future. This means that you can continue to expand on your life insurance plan without having to submit to any medical examinations or anything else that could cause you to be declined.
Cut Down on Your Health Risks
Life insurance agencies calculate your premium by determining how high of a risk you are. The higher the risk means it will cost you more, or in the worst case scenario, it might make you unable to get any coverage at all. Most companies will ask you a series of questions to determine your risk assessment; they’ll go over your age, gender, weight, past/present medical conditions, family medical history, and driving record. They’ll also ask you about your substance use (including alcohol and tobacco), and depending on the company and your circumstance, they might take blood and urine samples as well as your blood pressure and heart rate. It’s important to not lie on the application about your substance use because blood can hold onto most substances for a long period of time.
To get the best deal on your life insurance plan, get in the best shape of your life. Not only are you going to be improving your own daily health, but insurance agents will determine you a low risk case and give you a lower premium. People who are a healthy weight typically pay less for coverage and, by not smoking, you’ll slice the price of your premium. However, you can’t just take a vacation from it. Most companies require at least a year free of tobacco before you can be considered a non-smoker, and some require even longer than that. It does vary from company to company, so make sure you know what you’re agency requires.
Keep your record clean. Traffic violations and other vehicle-related offenses can up the cost of your premiums, and any violent offenses on your record won’t look promising for your insurance agent either.
Some companies also assess your location of residence. If you’re living in an area with low mortality rates and weather hazards, you’re going to be paying less than if you’re residing in a high risk location.
Dangerous recreational activities play a role in your life insurance journey, too. Hobbies such as rock climbing, surfing, or bungee jumping will all stack against you in the eyes of an insurance company. However, most aren’t reason for disqualification, but they will make your payments higher.
Guaranteed Insurability Option
If you’ve passed the test and are ready to purchase your life insurance plan, think about the future. As people age, health naturally fluctuates more often. Also, the future is uncertain for individuals of all ages and backgrounds, and it’s important to secure your coverage if your health were to take a turn for the worse. By adding a guaranteed insurability rider to your insurance policy, you can help protect your coverage in the future. This addition to your plan guarantees your ability to make changes or additions to your original policy without having to submit to any medical exams, so no matter what turn your health takes in the future, you’ll be able to still provide coverage for yourself or your family.
Unfortunately, not all medical conditions result in a higher premium; they result in denial of coverage due to being too high a risk. Chronic health conditions, such as cancer or multiple sclerosis, can often render someone uninsurable. Many factors go into these decisions such as age of the person, condition of the disease (how steady it’s been), and the amount of time that’s passed since being diagnosed. In most cases, there are many ways to get around being classified as uninsurable, so make sure you talk to a life insurance agent before you give up.
Life insurance helps many people feel at ease about the future, but not everyone is so lucky to have that option. In order to increase your chances of covering yourself and your loved ones from any financial burdens, it’s important to take the right precautions. Remember, by decreasing your risk level you’re increasing your life expectancy, and this is good news for your life insurance plans, but most importantly, for you and those around you.