Types of Risk
There are generally three types of risk for evaluating an applicant for term life insurance – Preferred Risk, Standard Risk and High-Risk.
- Preferred Risk individuals are in good health and are usually not involved in high-risk occupations, hobbies or lifestyles such as sky divers or professional firemen.
- Standard Risk individuals are in average health and usually not involved in high-risk activities.
- High Risk individuals may have poor health, a family history of health problems, diabetes, be a cancer survivor, smoke, or be involved in a high risk occupation, hobby or lifestyle.
It is important to not that high risk individuals may be able to change there status, ask your term life insurer if, how and when you can improve your risk status.
Term Life Insurance Underwriting Factors
The following are some underwriting factors that influence the determination of rates applied to your term life insurance policy.
Remember, you may be able to improve upon your risk rating by improving your health.
- Your Age – Term life rates are lower at an earlier age.
- Your Sex – Term life rates for women are usually lower than rates for men.
- Your Blood Pressure – Is it within normal range?
- Your Personal Travel – Do you plan any foreign travel, if so where to and how often?
- Your Driving Record – Do you have wto or more driving convictions in the last three years?
- Your Occupation – Hazardous occupations may include mountain climbing and fire fighting.
- Your Hobbies – Hazardous hobbies may include sky diving and hang gliding.
- Your Cholesterol Level – How does your cholesterol level compare with standards for someone your height, weight and age? Cholesterol levels may also vary depending on whether or not you smoke.
- Your Cholesterol/HDL ratio – How does yours compare with the standard?
- Your Weight – does it exceed the average range as determined by the American Medical Association for someone your height and weight?
- Your Health History – do you have a history of diabetes, heart disease, alhol/drug dependency? Are you a cancer survivor? Do you have a history of cardiovascular disease?
- Your Family Health History – does anyone in your immediate family have a history of heart disease, cardiovascular disease, diabetes, cancer, alocohol/drug dependency and did these health problems begin before 60?
Ideas For Improving Your Health
and Your Term Life Insurance Rates
- Stop smoking.
- Start exercising.
- Reduce your stress.
- Improve your eating habits, follow a balanced diet.
- Consider all areas of your lifestyle you could change to improve your health.
- Take preventive measures regarding your health. If you have a health problem take to your doctor now, don’t delay.
- Activity can help to improve your health, mind and spirit.
- Start a hobby to reduce stress and improve health.
- Make time for you and your children.
- Get more rest. Maintain a regular sleeping pattern.
- Exercise your brain. Read every day, continue to learn new things.
- Get regular checkups.Now that we’ve covered the factors that affect your rates let’s compare some term life insurance quotes.