Implementing a life insurance policy is beneficial under countless circumstances and should be seen as essential part of life.
Not only does a life insurance policy ensure your loved one’s financial security if something should happen to you, but it is also a valuable investment opportunity.
Insurance rates have been at historic lows recently, so there really is no reason not to make a life insurance policy a part of your financial portfolio.
But to keep your premium and rates low, you need to know if you are going to be “hard” to ensure or not. Everyone knows that insurers are going to look at how risky of a customer they think you are going to be, and then they adjust your rates accordingly. The higher of a risk they perceive you to be, the higher your yearly or monthly premiums are going to be.
A recent article from FoxNews.com, “Are you hard to insure?” looks at some of the reasons why a person would receive higher premiums or be denied coverage all together.
There are a variety of factors that insurers look at to determine your risk factor, so it is best to know what these things are and try and change them so you can get the lowest rates possible on your insurance plan. In some extreme cases, if you are deemed too much of a risk, you could be denied coverage all together, so you should try to prevent this in advance.
“In some cases, there isn't much you can do to remedy the situation — if you live in an active flood plain, for instance. But some things you do have control over. After all, do you really need that wood burning stove?”
The most obvious reason that some one would get higher premiums, or denied all together is if they are a smoker.
So what do you do if you have a couple of smokes a week? Well, the only answer here is to quit. Nicotine can leave your system completely within a few days, so if you are planning on taking out an insurance policy anytime in the near future you should probably stop now.
And don’t even think about lying either – because not only is this just plain immoral, but you wouldn’t want to get caught up in a fraud case or dropped by your insurer all together.
Also if you engage in “dangerous” activities such as skydiving, scuba diving or any other sport which requires leaping from inanimate objects, you could experience higher than normal rates.
If you find that you have tried to change your ways, but are still having trouble finding an insurer, please call one of the Financial Specialists at LEI Financial.
Our life agents work closely with every customer to ensure they get a policy that meets with their individual lifestyle.
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