Life Insurance Risk Types
Life Insurance Quotes Policy Risks from Life Insurance Quotes Wiz
What
type of risk are you?
Whether
you know it or not, you are a "risk" in the eyes of insurance
companies. If you are like most people — you're not an Olympic athlete
but you don't have serious health problems — then you are probably what
is called a "standard risk." Standard risk individuals qualify
for an insurance company's standard rates. If you are in better than
average health though, you could be a "preferred risk" and
qualify for lower, preferred rates.
Can
you change your rating from standard to preferred and get lower rates?
Yes
and no. Some things about your health you can't change. But there are
lifestyle choices you can make: quitting smoking, for example,
or taking steps to lower your cholesterol or get your weight down so
that you'll become a better risk and improve your rating. Each company
has its own standards but, if you demonstrate improvements for a year
or two, most will consider that evidence of permanent improvement and
will consider you for preferred status.
Here
are some of the factors insurance companies consider when categorizing
someone as preferred risk.
But keep in mind that definitions of standard and preferred risks
vary from company to company.
- No
history of cardiovascular disease, stroke, diabetes, cancer or alcohol/drugs.
- No family history of cardiovascular disease prior to age 60, for
parents/siblings.
- No flying as a private pilot,
or in aviation for two years prior
to applying for policy.
- Having an average, untreated blood pressure that doesn't exceed 150/90.
- Having a cholesterol level that doesn't exceed 260 (250 for tobacco
users).
- Having a cholesterol / HDL ratio that doesn't exceed 7 (6 for tobacco
users).
- Weight that doesn't exceed the copany's limits.
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