Risk Consideration
Just like any other type of insurance, life insurance is calculated on probability. Despite the fact that sudden death or death caused by unexpected circumstances may occur and shorten anyone’s life, there is a generic average life expectancy different for men and women. Based on careful consideration of number of factors closely related to each individual person the insurance company designs the policy to reflect the probability of death.
Certain groups of people are considered higher risk than others and therefore their premiums are more expensive and in some cases even denied insurance. Some of the greater risk groups include:
- High-risk occupations – loggers, oil and gas workers, armed officers, high rise riggers, pilots, miners, rescue services, etc.
- Dangerous sports/hobbies – people who are professional athletes or simply hobby enthusiasts such as rock/mountain climbing, skiing, base jumping, motorsports, rugby, boxing, skydiving, paragliding, etc.
- People Over 60 years old –any life insurance policy that covers you past the age of 70 would trigger a requirement for an advice from a fully FPC qualified and regulated advisor.
- Poor Health history – People who have existing or recent medical condition; people with family history of inherent diseases, etc.
- Smokers
Be advised that the list of what is considered high risk occupations, poor medical and family history, dangerous hobbies, dangerous sports, etc. can vary from insurance company to insurance company.
Therefore, it is very important to review as many life insurance quotes and policy options as possible to find the one that suits your circumstances best. Be sure to disclose any information which may affect your risk assessment because any undisclosed information can render your claim and even your whole life insurance invalid.
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